Consultancy Agreements in India: What You Need to Know

by  Adv. Anamika Chauhan  




5 mins


Consultancy agreements

Contractual agreements are the reason why legal enforceability becomes easy and grounds to bring such actionable claims gain some footing. Many companies decide on hiring a consultant instead of appointing a short term specialist for permanent employment. These consultants are supposed to be experts in their area of specialisation and hence these consultancy agreements are the reason why we are able to bind them for the performance of duty on their part. A consultancy agreement can be regarded as a legal document that forces legal performance on the part of any external consultant and jogs down the lane of all the intricate details related to any dispute termination compensation and any sort of secrecy that can be expected from such personnel. Doing this will not only prevent future disputes but will also make sure that they have smooth sailing all throughout their business Journey.

Who are the parties involved in a legal consultant agreement?

Generally, whenever we talk about a consultant agreement, there are only two parties involved, the consultant and the company. It is a detailed description in which every detail read it to their salary compensation and lentil employment detail is discussed. There are sometimes consultancy agreements signed in between three parties where an agency is also involved. The work of these agencies is to provide good consultants for companies and the contract is in between the company and the agent and a different contract in between Consultant and agent. The repercussions in this scenario are different to that of a traditional consultancy agreement in India. We can also regard a good consultancy agreement similar to a service agreement.

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Things to consider before you sign a consultancy agreement

  • It is expected from you that you read each and every detail and take your time before signing that agreement. In case of any doubt, you must clarify it and if you do not agree on certain levels then you must reconsider signing the contract.
  • It is expected from you to also consider this document as a Bible for your short business journey. Everything related to your what will be discussed over here hence uses this agreement to define your relationship.
  • Go through the confidentiality clause over and over again because that is the area where most of the consultancy agreements are violated by other parties.
  • You’re also advised to seek help from good legal counsel in case you’re unable to comprehend a clause or something you consider might fall in the grey area. There might be similar issues that can cause disputes in the future hence seeking help from a lawyer in advance might help you in the long run.

What can be some major advantages of framing a good consultancy agreement?

  • It increases the scope of Confidentiality, there are times when you want to discuss the norms that a person might be needed to comply with and with this contracting parties can express themselves.
  • There were times when oral contracts were quite prevalent but a consultancy agreement provides evidence of all the rights and duties that the parties to contact needs to fulfil.
  • Consultancy agreement also acts as a guard to the parties. It makes sure all the rights of signatories of consultancy agreements are protected. It further reduces the scope of any future dispute.
  • With the help of a good consultancy agreement scope of clarity increases and the nature of work is enhanced. There is a detailed description of each and every clause and this is the reason why people would prefer having a consultancy agreement.

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Status of consultancy agreement in India

Earlier consultancy Agreements were generally created for the clients or their employers but now this practice has been spread widely all across the market. People are using this to create a consultancy partnership agreement, consultancy agreement with companies, consultancy agreement for professional services and many more. The reason why it is spread is that, although we are low on the chain of making futuristic changes in the field of law, the rate of adaptability is quite high.

Consultancy services in India have now migrated toward the online medium as well. Services that are offered on an online medium are negotiable instruments, intellectual properties, common tax services, property services and much more. These agreements and contracts are tailored to the needs of the parties and will make sure that there is nothing creating future ambiguity and disputes. The main purpose of creating a constancy agreement is to have a clutter-free life and if that purpose is not fulfilled there is no reason to invest in projects like this.

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As mentioned earlier, India is a country that has a lot of scope for development in the field of law. If the right number of people devote themselves to the development of futuristic contracts, the machinery will move towards more law-abiding than law fearing. All the razzmatazz and glitter that the law industry provides to other people from the different fields is all because of such vital developments. So, the future of law is not just with a black gown but with people who have open minds towards accepting new things.

Want to hire consultants for your business? A lawyer can help you draft a consultancy agreement keeping both parties interests in mind.

Adv. Anamika Chauhan

Adv. Anamika Chauhan


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Advocate Anamika Chauhan has been practising law independently for the last 5 years, during which she has gained extensive experience in handling cases. She offers legal consultancy and advisory services with a focus on achieving ethical and professional results. In addition, her excellent communication skills allow her to articulate arguments persuasively in both written and verbal forms.

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