Consultancy Agreement

What Is an Independent Consultant Agreement?

If you are looking for information on Independent Consultant Agreement, you should read this blog. You will get all the information related to an ICA.

Independent Consultant Agreement – We all know how things have changed. In today’s “gig economy,” remote labour is the norm. In the United States and elsewhere, freelance work is growing increasingly common.

Independent contractors (ICs) are non-employee workers that provide services to a company on a contract basis. The businesses they work for do not hire independent contractors. All full-time employees should access health insurance and workers’ compensation through their workplace.

What Is an Independent Consultant Agreement?

In terms of a consultancy agreement between an employing company and an individual contractor, their working relationship is established. Binding legal written contracts intend to develop clear and explicit expectations, safeguard both parties’ interests, and prevent employment categorisation misunderstandings.

What Is Included in the Independent Contractor Agreement?


Consultant undertakes to perform “Work” as specified in Annexure A on the above terms and circumstances.


A suitable format must be provided for delivery to the Client. The Consultant is accountable for this. The Consultant may continue with the Work as long as the Client’s needs are met, as stated in Annexure A or otherwise communicated to the Consultant in writing. Only if both parties expressly agree to do so in writing can either party request a renewal of the Consultant’s contract for another project.


  • Only ₹/- shall be paid to the Consultant for the Services, and no further fees or expenses shall be given to the Consultant unless the Client has accepted such fees or costs in writing.
  • It is up to the Client to determine whether or not the Services and work product are complete. The Consultant agrees to make any changes, additions, or adjustments the Client requests.
  • Compensation payments are due every month.
  • All levies, state welfare obligations or contributions, disability insurance, unemployment insurance and other payroll-type taxes or other relevant laws applicable to such remuneration or the Consultant shall be the exclusive responsibility of the Consultant


This agreement states that the Client will supply the Consultant with all the materials necessary to complete the Work stated herein. Podcasts on the client’s goals and other materials are examples of this information, but they are not exclusive.

Ownership and Assignment

1. Ownership

  • Both parties agree that the Client and not the Consultant will own the Consultant’s work service or product. 
  • All works, products, discoveries, advancements, designs, innovations, improvements, and information (whether or not at a commercial level) shall be promptly disclosed in writing by the Consultant to the Client.

2. Assignment:

  • The Consultant at this moment transfers and agrees to move to the Client all worldwide right, title, and claim that the Consultant may have or obtain in or to the Client, its heirs, assignees, or nominees, without any royalty or other remuneration save as expressly set forth herein.
  • Intellectual property rights and proprietary information inherent in or connected to the Consultant’s work under this Agreement are the property of the Receiving Party if any.

Relationship of Parties

  • Nothing in this Agreement shall be considered to establish the connection of workers and employers, director and agency, partner or joint venture, or any other type of fiduciary relationship between the Consultant and Consultant Personnel.
  • The Consultant may not act as an agent or representative of the Client or bind the Client in any way.
  • It is understood and agreed upon that no benefits, including insurance, vacation, retirement, or sick pay, will be granted to any Consultant Personnel, nor will the Consultant be eligible to receive any benefits from the Client.


a) Confidential information

Specific proprietary processes, proprietary information, and confidential information, which the client values highly (collectively referred to as “Confidential Information”), belong to the client.

b) Non- disclosure and Protection

Confidential Information shall be kept confidential and protected by the Consultant at all times during or following the performance of the Services. The Consultant shall not disclose, publish, disseminate, or otherwise make available or use Confidential Information, except as necessary to perform the Services.

  • Liability

Even if one party has been made aware of potential damages such as bodily injury and death as well as loss of revenue and profits or other benefits and claims by third parties (except their indemnification obligations), neither party will be liable to the other under any circumstances, including but not limited to the terms of this agreement.

Any causes of action, including but not limited to contract and warranty breach, carelessness, strict liability and other torts, are subject to the limits above.

  • Term and Termination

Term- A three-month initial period (referred to as the “Term”) will begin on the Effective Date. It will expire unless earlier canceled by the terms of this Agreement, at which point it will automatically renew.


The Agreement may be terminated for cause by either party giving the other written notice

  • It violates this agreement and has failed to correct the breach within five (5) days of receiving written notice from the non-breaching Party.
  • It acts in any illegal business practice relating to the performance of such Party under the Agreement
  • It becomes insolvent; makes an assignment for the benefit of creditors; has a receiver, trustee or equivalent body appointed for the property; is declared bankrupt.

The Parties must offer one month’s notice before the termination of the contract.

The Advantages of a Consulting Contract

Entering into a consulting agreement can bring about the following advantages:

  • It identifies the range of the project’s activities

One might expect to discuss a wide range of potential projects with prospective clients while offering consulting services. A client can quickly accumulate a substantial desire list. It is, however, essential to have a well-defined scope of work to accomplish a task.

  • Disputes can be prevented

Consultancy or consulting agreements might supply a specific quantity of expertise. It was agreed that the scope of services would be established, and the consultants would lose money if any services were not performed. Conflicts between the parties will be avoided as a result of this agreement.

  • The use of professional services is an option

In most cases, these consulting agreements are signed between the parties to ensure the expert’s services are provided. If, for example, an organisation is looking to overhaul and streamline its whole IT infrastructure, it might sign a contract with an IT consulting firm. It would necessitate a consulting agreement between the IT Company and the organisation. The scope of a consulting arrangement is much broader than just IT and includes professional services such as accounting, legal, and other business services.

  • Sets the stage for the future

Retainers would be the most common type of these contracts. Because of this, it is crucial to assess the relationship before signing a consultancy agreement. An agreement between two or more parties to provide consulting services is called a “consulting agreement.” A consultancy agreement is the only way for the parties to create such a partnership.


An independent contractor agreement, or at least a knowledge of its components, can begin with these principles. It may take some time to draft a legally binding contract, but the effort is well worth it. If you need any help, Vakilsearch is here for you. You can check out our website to know more about Independent Consultant Agreement. 

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