This form is a "Residuals" Clause for a Consultant Agreement usable in consulting agreements where consultant exposure to commercial trade secrets or other confidential information is a factor. The residuals clause allows some disclosures of confidential information under certain limited circumstances.
The Virgin Islands Residuals Clause for Consultant Agreement is a crucial provision that outlines the ownership and rights of any residual knowledge or property developed by a consultant during their engagement with a client in the Virgin Islands. This clause ensures that the consultant does not retain any proprietary rights over the information or materials created during the consultancy. In the Virgin Islands, there are primarily two types of Residuals Clauses that can be included in a Consultant Agreement, namely: 1. General Residuals Clause: This clause states that the consultant cannot claim ownership or rights to any information, data, techniques, ideas, materials, or concepts generated during the consultancy, which were not specifically assigned to them by the client. The ownership of these residuals shall solely reside with the client, allowing them to use and exploit such residuals without any further obligation to the consultant. 2. Limited Residuals Clause: In comparison to the general clause, this provision allows the consultant to retain some limited rights or interests in any residuals developed during the engagement. However, the exact scope and nature of these rights should be clearly defined within the agreement. Typically, the client maintains first or exclusive rights over any residuals, while the consultant may be granted a non-exclusive, non-transferable license to use them for non-competing purposes or personal use. It is important to note that the specific terms and conditions of the Virgin Islands Residuals Clause for Consultant Agreement may vary depending on the nature of the consultancy, the client's industry, and the preferences of both parties involved. Consulting agreements should always be carefully crafted to address the unique circumstances of the engagement and provide adequate protection for all parties involved.
