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Consulting Agreement

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CONSULTING AGREEMENT

This Consulting Agreement (the "Agreement"), is entered into effective as of (the "Effective Date"), between , a corporation (the "Company") and (the "Consultant"). Company and Consultant may be referred to collectively in this Agreement as the "Parties" or individually as a "Party."

The Parties desire to enter into an agreement setting forth the terms and conditions under which Consultant will provide services to Company.

For and in consideration of the mutual covenants and agreements set out in this Agreement, the Parties agree as follows:

1. Services as a Consultant. Company agrees to employ, and Consultant agrees to provide to Company the exclusive services of Consultant, such services to be performed in the capacity of a consulting representative in connection with the ongoing business of Company. Consultant shall advise and consult with Company from time to time as reasonably requested by Company in connection with the operation and development of the business operations of Company.

2. Term. This Agreement shall commence on the Effective Date and shall continue for a period of (the "Term of Employment") unless sooner terminated pursuant to the provisions of this Agreement.

3. Compensation.

3.1 Consulting Fee. Company shall pay Consultant during the term of this Agreement a retainer fee of $ per month for services rendered pursuant to this Agreement by Consultant. This fee may be offset by any amounts due and owing by Consultant to Company whether such amounts arise out of this Agreement or unrelated transactions between the Parties. Consultant shall not participate in any group health, accident and life insurance plans, or any pension or other benefit plan sponsored by Company.

3.2 Expenses. Consultant shall, on presenting Company with documentation reasonably acceptable to Company, be reimbursed by Company for all reasonable expenses, including transportation, meals, lodging, long distance phone calls, and related miscellaneous expenses incurred by Consultant in connection with the performance of the services provided by Consultant pursuant to this Agreement; provided, however, all expenses of Consultant must be approved by Company in advance of the expenses being incurred by Consultant.

4. Exclusive Services. Consultant agrees that will not, during the term of this Agreement, do any work, perform any services, or serve as a consultant for a third party where those activities would, in the reasonable judgment of Company, create a conflict of interest with activities, duties, obligations, and responsibilities as set forth in this Agreement.

Notwithstanding anything contained in this Section 4. to the contrary, it is acknowledged by the Parties that Consultant presently has other business interests not related to the business of Company and Consultant may continue to pursue those other interests.

5. Confidentiality. Consultant recognizes that during the term of this Agreement, Consultant may have access to confidential and proprietary information and trade secrets of Company. Consultant agrees that will not divulge, distribute, or disseminate any of that information to any third party during or after the term of this Agreement.

6. Personal Services Contract. Consultant acknowledges and agrees this Agreement is a personal services contract and may not be assigned by Consultant.

7. Non-Competition. Consultant covenants that commencing on the Effective Date and continuing for a period of () months following the termination of this Agreement, Consultant will not own, manage, operate, join, control, or participate in, directly or indirectly, or derive any benefits from, or be an officer, director, employee, partner, agent, consultant, or shareholder of, any business engaged in any activity that is in competition in any manner with the business of Company or any of its subsidiaries or affiliates and Consultant shall not render assistance or advice to any person, firm, or enterprise which is so engaged.

8. Termination. This Agreement may be terminated prior to the end of the Term of Employment:

a. By the Parties upon the mutual written consent of both Parties;

b. By Company if Consultant (i) breaches any covenant, term, or condition contained in this Agreement, (ii) commits an act of theft, fraud, or dishonesty against Company, or, (iii) fails or refuses to perform the services to be provided by Consultant pursuant to this Agreement;

c. By Consultant if Company breaches any covenant, term, or condition of this Agreement; or,

d. Upon the death of Consultant.

If this Agreement is terminated for the reasons stated in a., b., or c. above, any obligations of Company to pay consulting fees to Consultant as provided above, shall terminate effective as of the date of termination of this Agreement, and those fees will be prorated through the date of termination. If Consultant terminates this Agreement pursuant to c. above, Consultant shall be entitled to the fees that would be due to Consultant during the remainder of the term of this Agreement, if, and only if, the breach of this Agreement by Company which has occurred giving rise to Consultant's termination pursuant to c. above is the nonpayment of fees or expenses to which Consultant is entitled, and such breach has continued for a period of () consecutive days.

9. Miscellaneous.

9.1 Independent Contractor. Nothing contained in this Agreement shall be construed to as a partnership agreement and Consultant shall not be deemed to be an employee or agent of Company. Neither Party has any authority to bind the other in any respect. It is intended, understood, and agreed that Consultant is an independent contractor responsible for own actions.

9.2 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of . Company and Consultant agree that in the event of a dispute arising between the Parties, the Parties agree to subject themselves to the jurisdiction of the Courts of County, .

9.3 Modifications. No provision of this Agreement may be changed or modified, except by written agreement signed by the Parties.

9.4 Legal Compliance. Consultant agrees to abide by all applicable laws and regulations, both state and federal, in the performance of duties provided for in this Agreement.

9.5 Entire Agreement. This Agreement contains the entire understanding of the Parties in connection with its subject matter and supersedes all previous verbal or written agreements.

9.6 Notices. Any notice required or permitted to be given under this Agreement shall be in writing and shall be considered to have been given if sent by certified mail to Consultant at:

or, to Company at:

with a copy to:

9.7 Invalidity. If any of the provisions of this Agreement shall be held invalid, that invalidity shall not affect any other provisions which can be given effect without the invalid provisions. To this end, the provisions of this Agreement are intended to be and shall be deemed severable.

9.8 Descriptive Headings. The descriptive headings of the several sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of its provisions.

This Agreement has been executed as of the Effective Date stated above.


Company


Consultant

Enter text✕

What a Consulting Agreement Is and When It Applies

A Consulting Agreement is a written contract between a client and an independent consultant or consulting firm that sets out the scope of work, deliverables, compensation, schedule, confidentiality, intellectual property ownership, and termination rights. It defines roles and responsibilities, payment terms, expense reimbursement, and performance milestones. The agreement also typically includes representations, warranties, liability and indemnity limits, and a governing law clause. Properly drafted Consulting Agreements reduce ambiguity and provide an enforceable record of the parties' expectations and remedies if a dispute arises.

Why a Clear Consulting Agreement Matters

A precise Consulting Agreement allocates risk, protects intellectual property, fixes payment and timing expectations, and reduces litigation exposure. It creates an evidentiary record for enforcement, supports tax and audit compliance, and clarifies post-termination obligations for trade secrets and deliverables.

Why a Clear Consulting Agreement Matters

Who Typically Uses a Consulting Agreement

The Consulting Agreement is used by individual consultants, consulting firms, and client organizations to document professional services and payment terms.

  • Independent consultants and freelancers providing advisory or project-based services.
  • Small and mid-size consulting firms engaged on retainer or project scope.
  • Corporate clients (procurement, legal, or business units) hiring outside expertise.

Tailor the agreement to the relationship type, project complexity, and industry-specific obligations like HIPAA or financial compliance.

Step-by-Step: Completing a Consulting Agreement

Follow a standard sequence to draft, review, and finalize the agreement to reduce errors and accelerate execution.

  • 01
    Draft: Populate core fields and scope details before circulation.
  • 02
    Internal review: Have legal and finance review key clauses and tax implications.
  • 03
    Negotiate: Track redlines and confirm final deliverables and payment.
  • 04
    Execute: Collect signatures and distribute fully executed copies with audit trail.

Essential Clauses Every Consulting Agreement Should Include

A well-structured Consulting Agreement organizes protections and performance terms into clear, enforceable sections to manage expectations and legal risk.

Scope & Deliverables

Define specific services, outputs, milestones, formats, and acceptance criteria so both parties know what constitutes completion and how changes will be handled.

Compensation

Specify fees, billing frequency, payment methods, reimbursement of expenses, invoicing procedures, and remedies for late payment to avoid billing disputes.

Term & Termination

State the contract term, renewal mechanics, and termination rights including notice periods and post-termination obligations for work-in-progress and final payments.

Confidentiality & IP

Allocate ownership of existing and created IP, include confidentiality obligations, define permitted use, and describe any license grants or assignment requirements.

Liability & Indemnity

Limit liability where appropriate, specify indemnification scope for third-party claims, and allocate risk such as negligence or willful misconduct exclusions.

Governing Law

Identify the state law governing the agreement and the dispute resolution method — court jurisdiction, arbitration, or mediation clauses are common.

Key Information to Include in the Agreement Header

Parties' Legal Names: Full registered names
Contact Addresses: Street, city, state, ZIP
Scope Summary: Short service description
Payment Terms: Rates and schedule
Effective Date: MM/DD/YYYY
Signatures: Signer name and date

Common Drafting and Preparation Pitfalls

  • Vague scope or deliverables that leave acceptance criteria undefined and lead to disputes over completion and payment.
  • Absent or ambiguous compensation terms and invoicing procedures that create late-payment conflicts and accounting issues.
  • Failure to address IP ownership and licensing, causing uncertainty about rights to work product and derivative works.
  • Not specifying termination rights and post-termination obligations, which can complicate wind-down and final compensation.

Practical Risks and Consequences of Poor Documentation

Contract Disputes: Increased litigation risk
Payment Disputes: Delayed or withheld payments
IP Ownership: Loss of rights to deliverables
Tax Exposure: Misclassified worker issues
Regulatory Risk: HIPAA or financial noncompliance
Enforcement Costs: Attorney and court fees

How to Share and Sign the Agreement Electronically

Electronic workflows streamline delivery, signer authentication, and recordkeeping while preserving evidence of consent and execution.

  • Upload: Import the agreement as PDF or DOCX into your chosen eSignature platform.
  • Prepare: Place signature, date, and initial fields and add conditional or required fields as needed.
  • Send: Deliver via email link, SMS code, or secure portal with authentication options.
  • Complete: Signers apply signatures; system captures an audit trail and issues completed copies.

Typical Digital Workflow Settings for a Consulting Agreement

Configure authentication, routing, and notifications before sending to ensure secure signer attribution and timely execution.

Field Configuration
Authentication Email link or SMS code
Signing Order Sequential or parallel
Conditional Fields Show based on role or answers
Notifications Email reminders and expiry alerts

Technical Considerations for eSignature and Document Handling

Choose a platform that supports common file formats, reliable audit trails, and integrations you depend on for storage and ERP/CRM workflows.

  • File Formats: PDF, DOCX, and PDF/A support
  • Integrations: CRM, storage, ERP connectors
  • Authentication: Email, SMS, or advanced methods

Typical Timelines, Notices, and Processing Expectations

Establish clear timelines for deliverables, payment, termination notices, and record retention to reduce disputes and ensure compliance.

Effective Date and Term:

Contract start date and duration, set in Effective Date field.

Payment Schedule:

Net terms (e.g., Net 30) and invoicing cadence.

Deliverable Milestones:

Due dates for interim results and final acceptance.

Termination Notice:

Typical notice period is 30 days unless otherwise specified.

Record Retention:

Retain executed agreement per applicable regulatory requirements.

Practical Examples: How Organizations Use Consulting Agreements

These concise case examples show typical consulting arrangements and the clauses most frequently relied upon to manage risk and deliverables.

Optica Ventures LLC

A VC-backed firm engaged a part-time CFO for quarterly deliverables

  • Short-term retainer with milestone payments
  • Clause clarity on scope and IP enabled predictable billing and simplified financial close processes for both parties.

Fertility Centers of Illinois

A healthcare provider retained a technical integrator for EHR work

  • HIPAA BAA and data handling protocols were required
  • Detailed confidentiality and data retention clauses ensured regulatory compliance and audit readiness.

eSignature Vendor Pricing and Feature Comparison

Compare starting price and core capabilities for common eSignature vendors. signNow is listed first per table convention; verify vendor plans for advanced features and enterprise pricing.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About Consulting Agreements

Answers to common legal and practical questions about execution, enforceability, amendments, and recordkeeping for Consulting Agreements.


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