You might have seen different kinds of contracts other than for employment, such as a Land Contract. However, there are also contracts for independent contractors, who are not actually employed by a company, but sign a contract to establish that they are working together. Any contract an independent contractor signs is not an Employment Contract , strictly speaking. Therefore, an independent contractor cannot expect all of the same things as an employee. That said, a contract is still signed, with all that that implies. While you might be able to use a Business Contract Template for either regular employment or an independent contractor, you cannot expect that they will turn out the same way.
That is a lot of money for a single consulting position, and without a consulting agreement a company would not risk to pay that amount. What is the difference between a Consulting Agreement and an Employment Contract? What differentiates an employee from an independent contractor? What is a non-competition clause and a non-solicitation clause?
Handshake business deals may still work for some people, but without a solid consulting agreement in place, signed by both parties, you are putting yourself and your business at risk. Most independent consultants and contractors significantly underestimate how much needs to be covered in a consulting contract:. Believe it or not, an effective consulting contract needs a full 18 components to get the job done.
Last Updated: November 5, References Approved. This article was co-authored by Clinton M. Sandvick, JD, PhD.