Contractors are generally more restricted to specific tasks directed by others, while consultants provide expert advice and strategic planning, often with more autonomy and higher impact.
While employment contracts establish a traditional employer-employee relationship with greater control and benefits, consulting agreements offer flexibility, independence, and project-based arrangements.
A Consulting Agreement is a contract between a company and a second party (the “consultant”), usually an individual, establishing the scope of work, compensation and other terms of the company-consultant relationship.
A consulting agreement is a contractual document that describes a working relationship between a business and a consultant providing that company with their services. Other terms that are used to refer to a consulting agreement include: Business consulting agreement. Independent contractor agreement. Freelance contract.
Both involve the meeting of minds and exchange of promises, but a contract typically entails a more formalized arrangement, often documented in writing, and carries legal enforceability. Conversely, an agreement can be informal and may not always be legally binding.
The Consulting Services Agreement formally establishes the relationship between the client and the consultant as contractor and not employer and employee. It sets out the rights and obligations of both parties and the scope of the services the Consultant is to perform.