A consulting agreement is a document that outlines what you, working as an independent contractor, can help a client business achieve. Though you are not considered an employee of the client company, you nonetheless provide specific services in a professional capacity. The agreement protects you and the business from potential disputes. Consultant agreements are important because they outline what work will be done, as well as the terms of the agreement between the client and the consultant. A consultant agreement should be detailed and include compensation terms, contract termination, intellectual property ownership and confidentiality agreements. A 'Consultancy agreement' will allow you to set out the terms and conditions of engaging the services of an external consultant. The consultant could be an individual or a company. You can agree the amount of out-of-pocket expenses the consultant can claim without prior written authorisation from you.

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