Consultancy Agreement
What is a Consultancy Agreement?
A Consultancy Agreement is a legally binding contract between a consultant (an independent expert or service provider) and a client (individual or business) that governs the delivery of professional advice or services. This agreement ensures that the consultancy work is performed efficiently, within agreed timelines and budgets, while clearly outlining each party’s rights, duties, and legal protections.
Example:
For instance, an Indian startup hires a marketing consultant to develop a comprehensive brand strategy. Rather than relying on informal discussions or emails, the startup formalizes the relationship with a Consultancy Agreement. The agreement clearly defines the scope of services, such as market research, campaign design, and content creation, along with the deadlines for each phase, confidentiality clauses to protect sensitive business data, and the payment structure (e.g., milestone-based payments for each phase of the strategy).
Result?
- Clear Expectations: Both parties know exactly what is expected and what deliverables will be produced.
- Legal Protection: Both parties are legally protected with defined terms and conditions.
- Efficiency: The consultant can focus on delivering results without misunderstandings, while the startup can ensure that services are delivered as agreed.
In summary, a well-structured Consultancy Agreement helps mitigate risk, ensures transparency, and fosters a productive professional relationship between the consultant and client.
Why a Consultancy Agreement is Important
A Consultancy Agreement is essential for protecting the interests of both parties in a business relationship. It allows the business owner to focus on core operations while ensuring the consultant provides expert guidance as agreed. This is particularly important when the consultant is advising on sensitive matters such as market expansion, technology implementation, or strategic planning, where underperformance or breaches of confidentiality can have serious consequences.
Why Do You Need a Consultancy Agreement?
- Defines Roles and Responsibilities: Clearly outlines the consultant’s duties and the client’s expectations to avoid misunderstandings.
- Ensures Legal Protection: Establishes enforceable terms, protecting both parties from disputes and breaches.
- Clarifies Payment Terms: Specifies fees, payment schedules, and additional costs to prevent conflicts over compensation.
- Safeguards Confidential Information: Protects sensitive business data and trade secrets from unauthorized use.
- Reduces Risk and Liability: Allocates risks, liabilities, and indemnities to ensure fair responsibility.
- Provides a Dispute Resolution Mechanism: Sets clear steps for resolving conflicts, reducing legal costs and delays.
Who needs a consultancy agreement?
A Consultancy Agreement is essential for:
- Small, medium, or large businesses hiring external consultants – Whether you're a startup or an established enterprise, this agreement helps formalize the relationship, define deliverables, and avoid misunderstandings over scope or payments.
- Startups or founders engaging legal, financial, tech, or HR advisors – Early-stage ventures often rely on consultants for specialized advice. A Consultancy Agreement protects intellectual property, outlines confidentiality obligations, and ensures accountability.
- Companies outsourcing marketing, branding, or digital strategy – When hiring consultants to shape your public presence or drive growth, a written agreement ensures clarity on scope, timelines, campaign ownership, and result tracking.
- Businesses hiring consultants for one-time projects or long-term roles – Whether it's a market entry study, compliance audit, or monthly advisory service, this agreement sets the expectations upfront, including how changes or extensions are handled.
- Teams working with domain experts or freelance professionals – From IT consultants to independent strategists, a formal agreement provides legal structure, avoids vague commitments, and ensures timely, result-oriented delivery.
- Anyone looking to clearly define deliverables, timelines, and payments – A Consultancy Agreement helps avoid scope creep, sets milestones, and ensures that both parties understand the terms making it a must-have for professional collaborations.
Example: Imagine you're a tech startup founder hiring a freelance UX consultant to improve your app interface. A Consultancy Agreement will define the work to be done, deliverables due each week, payment upon approval, and IP ownership preventing delays, misalignment, or disputes over who owns the final design.
When should you use a consultancy agreement?
You should use a Consultancy Agreement when:
- Before assigning any task or project to the consultant – Formalize the engagement in writing before work begins to ensure clarity on expectations, scope, and responsibilities.
- Prior to making any payments, advance or otherwise – Secure the terms of payment, delivery milestones, and refund conditions in writing before transferring funds.
- When hiring external experts for strategy, advice, or execution – Whether it's legal, financial, marketing, or technical consultancy, a written agreement provides structure and enforceability.
- Before sharing sensitive business data or proprietary information – Protect your intellectual property, trade secrets, and confidential information by including clear non-disclosure and data handling terms.
- When you need to fix clear deliverables, timelines, and payment terms – Avoid vague commitments or shifting expectations by locking in specifics from the outset.
- To protect your interests and ensure legal accountability from the start – A well-drafted agreement offers legal remedies if the consultant underperforms, breaches confidentiality, or fails to meet commitments.
Types of Consultancy Agreements
1. General Consultancy Agreement
A versatile, all-purpose agreement used across industries. It defines key terms such as the scope of services, fees, timelines, confidentiality, intellectual property, and dispute resolution. Ideal for short-term or long-term consultancy arrangements where flexibility and clarity are needed.
Example: A small business hires a general business consultant to streamline its operations. The agreement outlines tasks, timelines, and payment terms without going deep into industry-specific details.
2. IT Consultancy Agreement
Used when hiring experts for IT services like system integration, software development, cybersecurity, or tech support. This agreement focuses on data protection, source code ownership, deliverables, service level terms, and post-implementation support.
Example: A startup brings in an IT consultant to build a mobile app. The agreement includes development milestones, IP clauses, and support conditions after launch.
3. Financial Consultancy Agreement
Applies when engaging professionals for services such as tax planning, budgeting, investment strategies, or financial audits. It emphasizes confidentiality, compliance with financial laws, and limits on liability for financial decisions.
Example: An individual hires a financial planner to optimize tax savings and investment portfolios. The agreement ensures advice stays confidential and aligned with SEBI/Income Tax regulations.
4. Legal Consultancy Agreement
This contract governs engagements with legal consultants offering services like contract review, litigation support, or compliance audits. It typically includes disclaimers on legal liability, clearly defined scope, and confidentiality protections.
Example: A company hires a legal consultant to audit HR policies and update vendor contracts. The agreement clarifies tasks and prevents the consultant from being held liable as legal counsel.
5. Marketing Consultancy Agreement
Used when hiring consultants for branding, digital marketing, campaign strategy, or content planning. It defines creative rights, timelines, measurable goals, and payment triggers tied to deliverables.
Example: An e-commerce company hires a digital marketing strategist to boost online visibility. The agreement sets ad budgets, performance metrics, and project milestones.
6. Management Consultancy Agreement
Covers consultants advising on business strategy, cost optimization, operations improvement, or organizational change. It focuses on deliverables, KPIs, and often includes performance-based incentives.
Example: A manufacturing firm hires a management consultant to improve efficiency. The contract defines success metrics like output improvement and cost savings.
7. HR Consultancy Agreement
Signed when an external HR expert is brought in for recruitment, training, policy drafting, or labor law compliance. It contains strict confidentiality clauses due to sensitive employee data.
Example: A mid-sized firm outsources its payroll and compliance to an HR consultant. The agreement ensures secure handling of employee records and clear accountability.
8. Healthcare Consultancy Agreement
Used by hospitals, clinics, or medical institutions to hire consultants for patient care optimization, infrastructure planning, or regulatory audits. It places high emphasis on medical ethics, compliance (e.g., with NABH norms), and patient confidentiality.
Example: A hospital engages a healthcare consultant to digitize patient records and improve OPD efficiency. The agreement covers HIPAA-like safeguards and service benchmarks.
9. Engineering Consultancy Agreement
Involves technical consultants in fields like civil, mechanical, electrical, or structural engineering. It details design reviews, site visits, approvals, safety standards, and technical liabilities.
Example: A builder contracts a structural engineering consultant to vet designs for a high-rise. The agreement includes safety regulations and deliverable timelines.
10. Freelance Consultancy Agreement
Ideal for independent consultants or subject-matter experts offering ad hoc or short-term services. It defines project scope, hourly/day rates, usage rights, and termination clauses.
Example: A freelance UX designer is hired to revamp an app’s interface. The agreement specifies design assets, feedback timelines, and payment upon delivery.
Building Service Agreement: Key Inclusions and Structure
1. Parties Involved
- Consultant (Service Provider) - A consultant is a person or company that provides expert advice or specialized services to a client in exchange for payment. Consultants can be individuals, freelancers, small firms, or large consulting companies. They offer expertise in various fields like IT, finance, marketing, law, healthcare, and management. Consultants may work on short-term projects or long-term contracts, depending on the client’s needs.
- Client (Service Receiver) - A client is a person, business, or organization that hires a consultant for professional advice or services. Clients can range from individuals seeking guidance to startups, small businesses, large corporations, or government agencies. They pay for the consultant’s expertise and agree on work scope, payment terms, and timelines before the project begins.
2. Project Scope and Deliverables
This clause defines the consulting services to be provided and the expected results, including:
- Type of consultancy (e.g., legal, IT, HR, marketing)
- Specific goals, tasks, and deliverables
- Timelines, milestones, and reporting frequency
- Final output and how it will be reviewed or accepted
3. Confidentiality
The client and consultant must protect any confidential information exchanged during the project. This may include:
- Business strategies, client lists, internal data
- Financial records, trade secrets, proprietary methods
- Restrictions on sharing or using such information beyond the project scope
- Obligations that may continue post-termination
4. Intellectual Property Rights
This clause clarifies ownership of IP created during the engagement:
- IP (e.g., reports, frameworks, software code, presentations) developed by the consultant remains their property unless otherwise agreed
- The client typically receives a license to use the work for internal business purposes
- Any transfer or reuse must be authorized in writing
5. Obligations of the Consultant
Outlines duties the consultant must fulfill, such as:
- Delivering services in a professional, lawful, and ethical manner
- Adhering to the agreed timeline and scope
- Protecting confidential and sensitive client information
- Complying with client policies, where applicable
6. Payment and Invoicing Terms
Specifies how and when the consultant will be paid:
- Fixed fees, hourly rates, or milestone-based billing
- Reimbursement of agreed out-of-pocket expenses
- Invoicing cycles, late payment penalties, and taxation (e.g., GST applicability)
7. Duration and Termination
Sets the time frame for the agreement and rules for ending it:
- Project start and end dates, including extension options
- Grounds for termination (e.g., breach, non-performance, mutual agreement)
- Notice periods, final invoicing, and return of materials upon termination
8. Force Majeure
Covers events beyond control that may impact service delivery:
- Includes pandemics, natural disasters, regulatory changes, or civil unrest
- Temporarily suspends obligations without penalty
- May allow contract termination after prolonged disruption
9. Indemnification
The consultant or client agrees to cover damages or losses caused by:
- Breach of agreement, negligence, or misconduct
- Disclosure of confidential information
- Legal claims resulting from wrongful acts under the scope of services
10. Dispute Resolution
Explains how conflicts will be addressed:
- Preferred method: negotiation, mediation, or arbitration
- Names governing law (e.g., Indian Contract Act, 1872) and jurisdiction
- Reduces legal delays and costs in case of disagreements
11. Compliance with Laws
Requires both parties to follow relevant laws and regulations, such as:
- Tax, labor, intellectual property, and data protection laws
- Industry-specific compliance (e.g., SEBI, RBI, GDPR)
Important Indian Laws Related to consultancy agreement
Indian Contract Act, 1872
In India, the validity of Consultancy Agreement is governed by the Indian Contract Act, 1872 (Sections 10, 14, 23, 27 and 73). Consultancy Agreement must be lawful and voluntary. Reasonable restrictions on trade to protect confidentiality are allowed under Section 27.
Consequences of Breach
GST Implications
Governing Laws
Intellectual Property Laws
Indian Contract Act, 1872
If any party breaks the Consultancy Agreement by not providing the services, another party can take action under the Indian Contract Act, 1872. Consequences may include:
- Legal Action - The aggrieved party can approach the court to enforce the agreement and recover losses caused by the breach.
- Compensation - The defaulting vendor may be held liable to pay monetary damages for any financial or business loss suffered by the client.
- Termination of Agreement - The non-breaching party can choose to terminate the contract immediately without further obligations.
- Impact on Professional Reputation - A breach can harm the vendor’s credibility in the industry, affecting future projects, client trust, and long-term business prospects.
As per the Goods and Services Tax (GST) Act, 2017, services rendered under the agreement are subject to GST. The service provider must charge and remit GST at the applicable rate. Both parties should clarify whether the prices mentioned are inclusive or exclusive of GST.
Arbitration and Conciliation Act, 1996
Under the Arbitration and Conciliation Act, 1996, disputes can be resolved through arbitration, offering faster, confidential, and fair resolution. Section 7 mandates arbitration if included in the Consultancy Agreement, while Section 8 allows courts to refer disputes to arbitration.
An arbitration clause in your agreement ensures benefits like:
- Faster Resolutions: Avoids lengthy legal battles.
- Scope of Services: The description of services provided by the parties.
- Confidential Proceedings: Keeps sensitive business information private.
- Fair Dispute Resolution: A neutral arbitrator decides the case.
Intellectual Property Laws
In India, if a consultant creates intellectual property like reports, designs, or software, the Copyright Act, 1957 protects creative works, while the Patents Act, 1970 governs inventions and technical solutions. Key sections include Section 17 of the Copyright Act, which defines ownership, and Section 2(m) of the Patents Act, which outlines the definition of an invention. The consultancy agreement should clearly state who holds the rights to the created IP to avoid future conflicts.
What to Do and What to Avoid?
Here's a side-by-side comparison of the DOs and DON'Ts for creating a Consultancy Agreement
✅ Do's | ❌ Don'ts | Expert Advice |
Clearly define scope, deliverables, and timelines in writing. | Don’t exceed the agreed scope without written approval. | Use annexures or a detailed Statement of Work to ensure alignment. |
Maintain confidentiality of client data and strategy. | Don’t misuse or disclose client information. | Include a clause extending confidentiality obligations beyond contract termination. |
Deliver services professionally and in line with the agreement. | Don’t commit to unrealistic deadlines. | Build in buffer time and clarify factors that may cause delays. |
Keep records of work done and communication. | Don’t operate without a signed agreement. | Use email or shared platforms for traceable communication history. |
Raise invoices on time as per agreed terms. | Don’t ignore feedback or disputes raised by the client. | Link invoices to work milestones for transparency and accountability. |
Define expectations and scope clearly from the start (Client). | Don’t make verbal changes without updating the agreement. | Use formal change orders for any scope or fee adjustments. |
Provide timely inputs, approvals, and necessary access (Client). | Don’t delay payments or breach financial commitments. | Set internal timelines for review/approvals to avoid blocking consultant’s work. |
Make payments as per agreed timelines (Client). | Don’t withhold information needed for service delivery. | Use milestone-based payment schedules tied to deliverables. |
Address performance issues in writing (Client). | Don’t expect free revisions outside agreed scope. | Include a clause for revision rounds and extra charges for scope changes. |
Keep all communications and changes documented (Client). | Don’t ignore the terms related to termination or liability. | Review the contract clauses on early exit, liability, and handover responsibilities. |
Checklist for a Consultancy Agreement in India
Keep Multiple Signed Copies
Action: Maintain at least two executed copies, one for the client and one for the consultant.
Tip: Store digital versions securely on platforms like Google Drive or DigiLawyer Cloud.
Expert Insight: In disputes over scope or payment, signed originals serve as key evidence of mutual understanding.
Use Legally Valid Digital Signatures
Action: Use Aadhaar eSign or certified platforms like DigiLawyer E-Sign.
Tip: Timestamped digital signatures are valid under the Indian IT Act, 2000.
Expert Insight: Opt for signature platforms that log IP addresses and digital trails for added legal weight.
Pay Applicable Stamp Duty
Action: Ensure stamp duty is paid as per your state’s regulations.
Tip: Most states levy ₹100 to ₹500 for consultancy agreements verify using your state’s e-stamping portal.
Expert Insight: Unstamped agreements may not be admitted as evidence in court.
Clearly Define Scope of Work and Deliverables
Action: List all services, timelines, reports, and expected outcomes.
Tip: Use annexures for detailed service descriptions or performance benchmarks.
Expert Insight: Ambiguity in scope is a top cause of disputes clarity here saves time and money.
Specify Consultant’s Obligations
Action: Include expectations like confidentiality, conflict-of-interest avoidance, and adherence to professional standards.
Tip: Mention compliance with internal company policies, where applicable.
Expert Insight: Make data protection, ethics, and non-disclosure binding even after termination if needed.
Set a Clear Payment and Invoicing Structure
Action: Define the fee model (hourly, retainer, milestone-based), payment schedule, and tax details.
Tip: State consequences for delayed payments and whether GST is included.
Expert Insight: Link payments to deliverables or periodic review to ensure fairness and accountability.
Add Confidentiality and IP Clauses
Action: Protect sensitive client data, strategies, and work outputs.
Tip: Define who owns intellectual property consultant or client.
Expert Insight: For IT, financial, or legal services, ensure IP transfer clauses are airtight to avoid post-project disputes.
Include Non-Compete and Non-Solicitation Clauses
Action: Restrict the consultant from working with direct competitors or poaching staff/clients post-engagement.
Tip: Keep duration (e.g., 6–12 months) and region (e.g., same city/industry) reasonable.
Expert Insight: While non-compete clauses are hard to enforce in India, a well-crafted non-solicitation clause usually stands up.
Define Duration and Termination Conditions
Action: Mention start and end dates, and terms for early exit.
Tip: Include termination triggers such as breach, non-performance, or notice-based exits.
Expert Insight: Add a mutual termination clause with a notice period for flexibility.
Add Force Majeure Clause
Action: Account for disruptions due to natural disasters, political events, or pandemics.
Tip: List specific events and specify timelines for suspension or termination.
Expert Insight: This is essential for long-term contracts or engagements involving international elements.
Clarify Subcontracting Rules (If Applicable)
Action: State whether the consultant can delegate work.
Tip: Require client approval for any subcontractors.
Expert Insight: Hold the primary consultant accountable for subcontracted work quality.
Include Indemnity and Liability Clauses
Action: Define responsibility for breaches, data leaks, or third-party claims.
Tip: Consider mutual indemnity or cap liability based on fees received.
Expert Insight: Especially important for financial, legal, or IT consultants handling sensitive data.
Specify Dispute Resolution and Jurisdiction
Action: Choose a dispute resolution method mediation, arbitration, or civil courts.
Tip: Select a jurisdiction convenient to both parties (e.g., the city of the consultant or client office).
Expert Insight: Arbitration under Indian Arbitration and Conciliation Act, 1996 offers faster resolution.
Ensure Compliance with Applicable Laws
Action: Ensure the consultant abides by Indian labor laws, taxation rules, and industry regulations.
Tip: Include clauses on GST registration, data protection, and professional licensing (if needed).
Expert Insight: For regulated sectors like finance or healthcare, extra compliance clauses are mandatory.
Get the Agreement Legally Reviewed
Action: Have a qualified lawyer vet the final draft before signing.
Tip: Legal professionals can spot vague terms, illegal restrictions, or missing protections.
Expert Insight: Well-reviewed agreements prevent expensive disputes and ensure enforceability in court.
Why DigiLawyer?
DigiLawyer simplifies the process of drafting legally verified Consultancy Agreements, ensuring both parties are protected throughout the engagement. Whether you need a standard template or customized clauses for disclosure of ideas and state, missing deadlines, or intellectual rights protection, we make sure your agreement is tailored to your needs and fully compliant with the Indian Contract Act, 1872, and the Arbitration and Conciliation Act, 1996.
With DigiLawyer, you can draft your Consultancy Agreement in minutes—fast, simple, and legally sound. Our platform guides you through every step of the process, ensuring your business and contractors are protected.
With options for notarization, expert consultations, and 24/7 support, your business is fully protected. Ready to safeguard your information? Let DigiLawyer help you draft your Consultancy Agreement today!
Legally Approved Agreements - Drafted by legal experts, following all Indian laws.
Fast & Easy Process - Get your agreement online without any hassle.
E-Stamping & Registration Help - We take care of all legal formalities for you.
Customizable Agreements - Modify terms as per your business or personal needs.
Affordable & Transparent Pricing - No hidden charges, just clear and fair costs.
Secure Online Storage - Access your agreements anytime, anywhere.
Expert Legal Support - Our team is always available for legal guidance and dispute resolution.
FAQs Related to Consultancy Agreement
If the client’s confidential information is breached, the consultant may be held legally responsible as per the confidentiality clause in the Consultancy Agreement. This could lead to legal action, financial damages, and termination of the agreement, depending on the severity and terms agreed upon.
Yes, a Consultancy Agreement is legally binding if it includes all the essential elements of a valid contract: offer, acceptance, lawful consideration, mutual intent to create legal relations, lawful purpose, and competent parties. Once signed, it is enforceable in a court of law.
Yes, you can fully customize the Consultancy Agreement template to suit your specific project requirements, including scope of services, payment terms, timelines, confidentiality, and other clauses relevant to your business relationship.
Yes, consultants should sign a contract to clearly define the scope of work, payment terms, confidentiality obligations, and other responsibilities. A signed agreement helps protect both parties and ensures legal enforceability in case of any disputes.
An employment contract establishes an employer-employee relationship, where the individual works under the company’s control, is entitled to employee benefits, and follows internal policies. A consultancy agreement, on the other hand, is for independent professionals providing services without being part of the company’s staff.
No, notarizing a Consultancy Agreement is optional, but it adds a layer of legal security. It helps establish the authenticity of signatures and the date of execution, which can be useful if the agreement is ever challenged in court. While not mandatory, it’s a smart precaution, especially for high-value contracts or long-term vendor relationships.
In case of payment disputes, it’s crucial to first refer to the payment terms outlined in the Consultancy Agreement. If there’s no resolution through negotiation, legal action can be pursued according to the dispute resolution clause in the contract.
If a consultant fails to meet the terms of the agreement, the client may invoke clauses related to non-performance, such as termination of the contract, withholding payments, or legal action for breach of contract.
Yes, consultants typically have the freedom to work with multiple clients unless restricted by exclusivity clauses in their Consultancy Agreement. However, any conflict of interest or issues with time management should be managed appropriately.
The scope of work should clearly outline the specific services the consultant will provide, timelines, deliverables, and expected outcomes. It should also include details on how changes to the scope will be handled, as well as the criteria for successful completion.
It is generally not advisable to begin work before the agreement is signed, as doing so may leave both parties vulnerable to misunderstandings or disputes. Ensure all terms are agreed upon before initiating work. However, if necessary, a "letter of intent" or "memorandum of understanding" can be used to outline initial terms until the final agreement is in place.
Potential Issues Without a Consultancy Agreement
- Business Delays - Many businesses suffer when consultants take longer than promised. If the agreement doesn’t include delivery milestones, there’s no way to push for faster results or hold them accountable.
- Billing Disputes Without clear terms on fees like hourly vs. fixed, what triggers payments, or what counts as “extra work” you could end up being overcharged or get billed unexpectedly.
- Confidential Ideas Leaked - Consultants often learn your business secrets, ideas, or future plans. Without a confidentiality clause, they may talk about your strategies, pitch your ideas to competitors, or reuse your concepts elsewhere.
- Stuck in a Bad Deal - If the consultant underperforms or violates your trust, a missing termination clause could trap you in the contract, causing stress, financial loss, and wasted time.
- Ip ownership issues - Without clear IP ownership terms, the consultant may legally retain rights to reports, designs, or frameworks they created even if you paid for them limiting your ability to reuse or scale the work later.
- Difficult to Resolve Conflicts - If there’s a dispute and no arbitration or mediation clause, you may be forced into expensive, time-consuming court battles.
It clearly outlines:
- Scope of Services: Describes the specific consultancy services to be provided (e.g., legal advice, business strategy, HR advisory, IT implementation), including deliverables, formats (e.g., reports, presentations), and expected outcomes.
- Engagement Timeline: Outlines the start date, duration of the engagement, delivery schedule for key outputs, and provisions for early termination or extension if needed.
- Roles and Responsibilities: Clearly assigns duties to both parties. For example, the consultant is responsible for timely delivery of expert advice or analysis, while the client may be required to provide data access, internal coordination, or approvals.
- Payment Terms: Specifies the consultancy fee (fixed, hourly, or milestone-based), advance or retainers (if any), invoicing cycles, taxes, and penalties for late payments or non-performance.
- Confidentiality and Non-Disclosure: Ensures that sensitive business information shared during the engagement remains confidential. It may also include non-disclosure obligations that survive beyond the termination of the agreement.
- Intellectual Property (IP) Rights: Clarifies the ownership of work products, reports, or strategies developed during the consultancy. Usually, the client owns the final deliverables, while the consultant retains rights to pre-existing tools or methodologies.
- Change Requests and Amendments: Outlines the process for modifying the scope, deliverables, or timelines due to evolving business needs. Changes must typically be recorded in writing and approved by both parties.
- Termination Clauses: Provides grounds for early termination by either party, such as breach of contract, failure to meet performance standards, insolvency, or mutual agreement. It may also include notice periods and final settlement procedures.
- Liability and Indemnity: Defines the consultant’s liability limits in case of errors, omissions, or breach of duty. It may also include indemnity clauses for losses arising from misrepresentation or negligence.
- Insurance Requirements: May require the consultant to carry professional liability insurance or errors and omissions insurance, depending on the nature of the consultancy.
- Dispute Resolution and Jurisdiction: Specifies how disputes will be handled—typically through mediation or arbitration—and identifies the governing law and jurisdiction (e.g., courts in Bangalore, Delhi) for any legal proceedings.
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