An offer; Acceptance; Valid consideration; Mutual assent; and A legal purpose. [4] X Research source
For example, some states have strict laws regarding liquidated damage provisions while other states allow them more freely. [5] X Research source
For example, if the parties are people, you will include first and last names. If a party is a company, you will want to provide the company’s name, address, and tax identification number if possible. Be sure to clearly indicate how each party to your contract will be referred to in the rest of your contract as well (e. g. , “hereinafter referred to as consultant”). Commonly, a consultant will be an individual entering into a contract with a company looking for the consultant’s services. For instance, a law firm may hire an individual consultant who has expertise in hiring and firing practices.
For example, an acceptable provision may state: “The customer is of the opinion that the consultant has the necessary qualifications, experiences and abilities to provide services to the customer. The consultant is agreeable to providing such services to the customer on the terms and conditions set out in this agreement. In consideration of the matters described above. . . “[6] X Research source This type of language is used to ensure that the requirement for valid consideration is met.
This section may start with something like this: “The customer hereby agrees to engage the consultant to provide the customer with services consisting of (x, y, and z). The services will also include any other tasks the parties may agree on. The consultant hereby agrees to provide such services to the customer. “[7] X Research source Common services include litigation support, asset management, process improvement, and second opinions. [8] X Research source
If paying periodically, think about including something like this: “For the services rendered by the consultant as required by this agreement, the customer will provide compensation to the consultant of $XX. XX per hour. “[9] X Research source If paying in one lump sum, try something like this: “The compensation will be payable upon completion of the services. “[10] X Research source
Consultants are most often going to be categorized as independent contractors. This ensures that the company or the individual hiring the consultant has a minimum level of responsibility over the consultant. This can be a good thing and it often means there will be less hoops to jump through in order to start and maintain the contractual relationship (i. e. , less tax and reporting responsibilities). For instance, if you characterize the consultant as an independent contractor, the independent contractor may not have to report their income, up to a certain amount, to the IRS for tax purposes.
An acceptable provision may state: “The term of this agreement will begin on the date of this agreement and will remain in full force and effect until the completion of the services, subject to earlier termination as provided in this agreement. The term of this agreement may be extended by mutual written agreement of the parties. “[11] X Research source
For example, your provision may end up looking like this: “This Agreement may be terminated by either party, with or without cause, upon thirty (30) days prior written notice to the other; provided that if consultant terminates this agreement, consultant shall, in accordance with the terms and conditions hereof, nevertheless wind up in an orderly fashion assignments for the customer which consultant began prior to the date of notice of termination hereunder. Upon termination of this agreement for any reason, consultant shall be entitled to receive such compensation and reimbursement, if any, accrued under the terms of this agreement, but unpaid, as of the date consultant ceases work under this agreement. In addition, consultant shall be reimbursed for any non-cancellable obligations, any cancellation penalties, and, unless consultant terminates the agreement without cause, any expenditures reasonably made in order to perform the services that were to occur had cancellation not occurred. “[12] X Research source
Severability provisions Modification provisions Indemnification provisions Choice of law provisions Entire agreement provisions
The other party may accept the offer in full. In this instance, you will then sign the contract and start performing. The other party could reject the offer in full. If this is the case, you will have to write a more acceptable contract to the other party or find someone else to try to contract with. The other party might try to negotiate some of the terms of your contract. If this happens, you will negotiate with the other party until you both reach an acceptable agreement.
