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Consulting Agreement

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Agreement to Employment of Consultant to Prepare Financial Legal Report

Agreement made on the , between , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Company, and , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Consultant.

Whereas, Company wishes to contract with Consultant for the services of Consultant in the field of ; and

Whereas, Consultant is willing and qualified to perform such services;

Now, therefore, for and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Services

It is understood that services provided by Consultant pursuant to this Agreement shall be so provided on a day-to-day, or as needed basis. Company shall have sole discretion to determine the need for continued providing of such services. Consultant shall not perform services the cost of which would exceed the dollar authorization set forth in Company's written authorization. Company shall have sole discretion to establish the minimum qualifications necessary for the performance of any service to be rendered by Consultant under and pursuant to this Agreement. Further, if at any time and at its sole discretion, Company determines that the services performed under and pursuant to this Agreement by any of Consultant's employees are not satisfactory, it will so notify Consultant in writing and Consultant shall immediately withdraw such individual and, at Company's option, furnish an individual who meets the qualifications required. Consultant agrees to perform such services as may be requested in writing by Company, including, but not limited to, gathering financial and related information, discussing same with the Company’s Attorney, CPA, Insurance Agency, and/or Financial Advisor in order to design a financial legal report.

2. Contents of Financial Legal Report

The contents of said financial legal report will include, but not be limited to a detailed description of the following:

A. Assessed value of properties owned or under the control of Company;

B. A breakdown of the annual cost of doing business or cost of operations of Company;

C. Income of the Company from all sources; and

D. An analysis of any disparity between revenues generated by the Company and resulting expenses.

3. Compensation

Company shall compensate Consultant as follows:

A. $ per hour for the effort expended by Consultant pursuant to this Agreement.

B. Actual expenses incurred by Consultant directly related to Consultant's performance under and pursuant to this Agreement.

C. Payment under this section by Company shall be net days from the date of receipt by Company of Consultant's invoice setting forth the total effort expended and actual expenses incurred and paid for by Consultant. Consultant's invoice for expenses shall be supported by appropriate receipts.

4. Consultant’s Employees

Employees of Consultant who perform services for Company under and pursuant to this Agreement shall be bound by the provisions of this Agreement and Consultant shall, at the request of Company, furnish to Company satisfactory evidence to that effect and that such employees are in fact employees of Consultant.

5. Confidentiality

Consultant agrees that the following shall for all time and for all purposes be regarded by Consultant as strictly confidential and held by Consultant in confidence, and solely for Company's benefit and use, and shall not be used by Consultant or directly or indirectly disclosed by Consultant to any person whatsoever except to Company or with Company's prior written permission:

A. All knowledge and information that Consultant may receive from Company or from its employees or other consultants or independent contractors of Company, or by virtue of the performance of services under and pursuant to this Agreement, relating to trade secrets, products, processes, inventions, machinery, apparatus, prices, discounts, costs, business affairs, marketing, management, future plans, or technical data that belong to Company or to those with whom Company has contracted regarding such information; and

B. All information provided by Consultant to Company in reports of work done, together with any other information acquired by or as direct result of employment as a Consultant by Company and during the term of such employment,

6. Term and Termination

This Agreement shall become effective on the date stated above and shall continue for a period of days. In addition to terminating at the end of such period, this Agreement may be terminated pursuant to the following:

A. Immediately on the death or incapacity of any person employed by Consultant who, in the sole opinion of Company, was essential for the successful performance of Consultant's obligations under and pursuant to this Agreement;

B. By either party, with or without cause at any time, on days' prior written notice; or

C. By Company, at any time, on days' prior written notice, if Consultant assigns this Agreement, or any right or obligation under this Agreement, without Company's prior written consent; or if there is a change in the control or management of Consultant that is unacceptable to Company; or if Consultant ceases to function as a going concern, or to conduct its operations in the normal course of business.

The obligations of Consultant under Section 4 above, shall survive any expiration or termination of this Agreement. On termination of this Agreement, Consultant will return to Company all written information, drawings, models, and other materials or files supplied to Consultant or created by Consultant at the expense of Company.

7. Loss or Damage

Consultant shall be responsible for and shall reimburse Company for all loss or damage to Company's property, property of third parties, or personal injury caused by the acts or omissions of Consultant, its agents, or employees during the term of this Agreement.

8. Severability

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

9. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

10. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

11. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

12. Attorney’s Fees

In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

13. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

14. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

15. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

16. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

17. In this contract, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.

(Name of Consultant)

By:

(Name of Company)

By:

Enter text

What a Consulting Agreement Is and What It Covers

A Consulting Agreement is a bilateral contract that records the relationship between a consultant and a client, specifying scope, deliverables, payment, term, confidentiality, intellectual property, termination, indemnity, and dispute resolution. Typical provisions define scope of work, milestones, rates or fees, expense reimbursement, ownership of work product, warranties, liability limits, and governing law. For U.S. transactions, electronic execution is generally enforceable under the ESIGN Act and UETA when intent, consent, attribution, and retention requirements are satisfied.

Why Using a Written Consulting Agreement Matters

A Consulting Agreement reduces ambiguity by recording deliverables, payment terms, timelines, and IP ownership. It limits liability, sets confidentiality expectations, and creates enforceable rights. Clear written terms make dispute resolution, billing, and project management more predictable.

Why Using a Written Consulting Agreement Matters

Six Essential Components to Include

Core elements to include in a Consulting Agreement ensure clarity on scope, payment, IP, confidentiality, liability allocation, and dispute resolution for enforceable engagements.

Scope of Work

Describe tasks, deliverables, milestones, acceptance criteria, and any exclusions. Use measurable milestones and specify who is responsible for approvals to reduce scope creep and payment disputes.

Compensation

Specify fee structure, hourly rates or fixed price, invoicing frequency, payment terms, expense reimbursement, and late fee or interest calculations. Tie milestones to payments where appropriate.

Term & Termination

State effective date, duration, renewal terms, termination for convenience or cause, notice periods, and post-termination obligations like transition assistance.

Intellectual Property

Allocate ownership of work product, license grants, moral rights waiver, third-party components, and rights to reuse or modify outputs after project completion.

Confidentiality

Define confidential information, permitted disclosures, duration of obligations, and required security measures; include exceptions and permitted disclosures to legal or regulatory authorities.

Liability & Indemnity

Limit liability, disclaim warranties, specify indemnification scope, and consider caps on damages or exclusion of consequential damages to manage financial risk.

Sequential Steps to Complete and Execute the Agreement

Follow these steps to complete and execute a Consulting Agreement accurately in sequence, ensuring signatures and attachments are included.

  • 01
    Prepare Draft: Define scope, milestones, deliverables, and fees.
  • 02
    Review: Have in-house counsel or external counsel review terms and risks.
  • 03
    Sign: Obtain authorized signatures, printed names, titles, and dates.
  • 04
    Deliver: Distribute fully executed copies to parties.

Who Typically Drafts or Signs a Consulting Agreement

Typical signers include independent consultants, project managers, procurement officers, in-house counsel, and business owners who approve scope and budgets.

  • Independent consultants — provide services, manage deliverables, and often propose fees or time estimates.
  • In-house counsel — review terms, assign risk, ensure IP assignment and confidentiality provisions are adequate.
  • Clients/contracting officers — approve budgets, set milestones, and manage payments and change orders.

Small businesses, startups, and agencies also use Consulting Agreements to document short‑term projects, protect IP, and establish payment schedules.

Who Has Authority to Sign

Company Signer

Chief executive officer or an authorized officer signs for the client. The signer must have delegated authority under corporate bylaws or a resolution; without clear delegation, signatures risk challenge for lack of authority in disputes.

Consultant Signer

Independent consultant or authorized representative signs to accept scope and payment terms. If the consultant is an LLC or corporation, sign using the legal entity name with the signer’s printed name and title to ensure enforceability and traceability.

Common Preparation Pitfalls to Avoid

  • Vague scope of work that omits deliverables or acceptance criteria, leading to disputes about completion and payment.
  • Missing or unclear payment terms such as rates, invoicing schedule, late fees, or expense reimbursement rules.
  • Failing to define ownership of deliverables and source materials, especially code, designs, or reusable templates.
  • Not addressing termination rights, notice periods, or post-termination obligations for returning confidential materials or winding down services.

Risks and Legal Consequences of an Incorrect Agreement

Breach of contract: Monetary damages and litigation
IP disputes: Ownership challenges to deliverables
Tax exposure: Misclassification risks and withholding
Regulatory risk: HIPAA or export controls
Invalid signature: Lack of intent or consent
Enforceability delay: Dispute resolution and arbitration costs

Security, Compliance, and Technical Controls to Consider

Encryption (in transit): TLS 1.2 and TLS 1.3
Encryption (at rest): AES-256 encryption at rest
Certifications: SOC 2 Type II, ISO 27001
Healthcare compliance: HIPAA compliant with BAA available
Legal frameworks: ESIGN, UETA, 21 CFR Part 11
Accessibility: WCAG 2.0 Level AA support

How to Configure an Online Signing Workflow

Configure online workflow fields, signer sequence, authentication, and reminders when sending the Consulting Agreement for electronic signature.

Workflow Configuration and Field Mapping Configuration
Signer Order and Signing Sequence Options Choose sequential or parallel signing order for participants.
Authentication Method Selection and Strength Email link, SMS code, or KBA verification
Available Field Types and Settings Signature, initials, date, text, attachments allowed
Reminder and Expiry Scheduling Options Set automatic reminders and expiry settings

Technical Requirements for eSigning and eSubmission

Ensure the chosen eSignature platform supports required integrations, secure authentication, audit trails, and accepted document formats for executing Consulting Agreements online.

  • Integrations: Integrates with Salesforce, NetSuite, Google Workspace
  • Formats: Accepts PDF, DOCX, HTML
  • Auth Methods: Email, SMS, KBA, SSO options

Where to Send and How Documents Are Routed

Typical document routing for a Consulting Agreement: send to signers, collect signatures, deliver final copies, and retain executed records for compliance.

  • Send to Signers: Email or secure signing link delivered to each party
  • Record Delivery: Provide fully executed PDF to all parties
  • File with HR: Store agreements with personnel records when engagement supports employment
  • Legal Repository: Archive in contract management system for search and audit

Key Dates and Deadlines to Document

Key dates to include and monitor for a Consulting Agreement: effective date, milestone deadlines, invoice due dates, acceptance windows, and termination notice periods.

Agreement Effective Date and Start Date:

Date work and obligations begin (MM/DD/YYYY)

Milestone Deliverable Deadlines and Acceptance:

Deliverable due dates with acceptance criteria

Invoice Payment Due Terms (Net X):

Common terms: Net 15, Net 30, or Net 45

Client Formal Acceptance Review Period:

Timeframe for client review and formal acceptance

Termination Notice Period and Procedure:

Notice period for termination for convenience or cause

Comparing eSignature Vendor Pricing and Core Features

Side-by-side comparison of starting prices and core features for eSignature vendors commonly used to execute Consulting Agreements.

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
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Practical Tips to Improve Accuracy and Speed

Best practices reduce risk and speed execution: use clear SOWs, predefine acceptance, align IP terms, and document approvals.

Write a detailed statement of work
Include measurable deliverables, acceptance tests, timelines, and milestones. Attach task breakdowns and responsibilities. Clear SOWs minimize disputes, provide objective criteria for payment, and support change order management when scope shifts occur.
Specify payment and invoicing procedures
Define currency, billing frequency, late fees, and approved expense categories. Require invoices to reference milestone IDs and include receipts for reimbursable costs. Clear procedures accelerate payment and reduce audit friction.
Address intellectual property explicitly
Use precise assignment or license language. Identify background IP, third‑party components, and any retained rights. Include deliverable definitions to avoid ambiguity over ownership of derivative works.
Use electronic records properly
Ensure signer intent, consent, attribution, and retention meet ESIGN and UETA tests. Keep audit trails with timestamps, IP addresses, and a reproducible PDF copy for evidentiary support.

Illustrative Use Cases from Real Organizations

Real-world examples illustrate how Consulting Agreements are used by different organizations to manage engagements and reduce disputes.

Optica Ventures

Optica Ventures standardized its consulting engagement process to reduce turnaround time and gave customers a simplified signing experience across desktop and mobile.

  • Simplified interface improved customer completion rates.
  • COO Brian Fitzgibbons observed the interface is simple and easy-to-use for their team and customers, helping to reduce manual follow-ups while maintaining compliance and auditability.

Xerox (NetSuite Ops)

Xerox integrated consulting agreements into its ERP to automate approvals and recordkeeping across projects and billing systems.

  • Integration linked agreements to invoices and project codes.
  • The change reduced administrative steps and ensured signed terms attached to corresponding financial records, improving tracking and operational controls.

Frequently Asked Questions About Consulting Agreements

Answers to common questions on e-signing, notarization, retention, and dispute prevention for Consulting Agreements.


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