Growthify

The Ultimate Guide

Simple Online Steps to Create Your Agreement with Growthify

When you bring in a Consultant or offer your expertise to others, a clear Agreement sets the stage for a great working relationship. A Consultancy Agreement outlines the work, expectations, and terms between you and the other party. It keeps things fair and protects everyone involved. At Growthify, we draft Consultancy Agreements that suit your situation, making the whole process simple and quick. Let us go over what a Consultancy Agreement is, why it helps, and how we put one together for you.

A Consultancy Agreement is a contract where one side provides expert advice or services to the other. It covers details like the scope of work, payment, timelines, and confidentiality. Businesses and individuals use these for projects in areas like marketing, finance, or IT. For example, if you hire a consultant to improve your operations, the agreement specifies what they will do and how much you pay. Growthify drafts these Agreements in line with Indian laws, such as the Indian Contract Act, to ensure they are solid and enforceable.

A good agreement prevents misunderstandings and gives you a clear path if issues come up. Without it, you might deal with disputes over deliverables or unpaid fees. It builds trust by defining roles and responsibilities right from the start. In India, consultancy agreements also help with tax rules and legal protections. Growthify creates agreements that fit your needs, so you focus on the work instead of worries.

Key Clauses for Consultancy Agreement

Consultancy Agreement vary by purpose, each requiring specific content to meet legal requirements.

01

Consultant & client details (name, address, GSTIN/PAN)

A Consultancy Agreement begins by clearly identifying the parties involved, including their full legal names, addresses, and entity types, whether the consultant is an individual, a limited liability company, or another structure. It also includes a brief recital that outlines the purpose of the engagement, such as providing strategic marketing advisory for a specific product or project. This section sets the foundation for the relationship and ensures both the client and the consultant are aligned on the intent of the agreement.

02

Scope of Work (SoW) with milestones & deliverables

The scope of services forms the heart of the agreement and must describe in detail the tasks, deliverables, timelines, and milestones the consultant is expected to meet. It should explicitly state what is not included to prevent misunderstandings and scope creep. Any changes to the scope should follow a formal process requiring written approval from both parties, often with adjustments to fees or timelines. Attaching a separate Statement of Work as a schedule allows for flexibility, especially when the agreement is used for multiple projects with the same client.

03

Term, renewal, and termination (with/without cause)

The term of the agreement specifies the start and end dates, whether it is a fixed-term engagement or ongoing until terminated. Termination provisions are critical: the agreement should allow termination for convenience with a notice period, typically 30 days, and immediate termination for cause, such as material breach, insolvency, or failure to perform after a cure period. Certain clauses, such as confidentiality and intellectual property rights, should survive termination to protect both parties beyond the end of the engagement.

04

Confidentiality & Non-Disclosure

Confidentiality obligations protect sensitive information disclosed during the engagement. The agreement defines confidential information, requires its protection and restricted use, and mandates return or destruction upon termination. Exceptions include information already in the public domain, independently developed, or required by law. Confidentiality often extends for two to five years after termination, or indefinitely for trade secrets.

05

Intellectual Property (IP) assignment to client

The agreement sets a clear timeline, often three to five years for business information, or longer for trade secrets, starting from the disclosure date or agreement signing. Even after the term ends, true trade secrets remain protected indefinitely until they become public through no fault of the recipient.

06

Intention to Partition Clause

Intellectual property rights are among the most critical clauses. The agreement should state whether the consultant assigns all rights in the work product to the client upon full payment or grants a perpetual license while retaining ownership. Pre-existing tools, methodologies, or materials brought by the consultant remain their property. The consultant must warrant that the deliverables do not infringe third-party rights, and moral rights should be waived where legally possible.

07

Non-compete & non-solicitation (limited scope)

Non-compete and non-solicitation clauses restrict the consultant from working with direct competitors or poaching the client’s employees or customers. These must be reasonable in duration, geography, and scope, typically 12 months and limited to the same industry, to be enforceable. Overly broad restrictions are often void, particularly in jurisdictions like California.

08

Indemnity and dispute resolution

Indemnification protects each party from losses caused by the other’s breach, negligence, or intellectual property infringement. Liability is typically capped at the fees paid or a multiple thereof, excluding consequential or indirect damages like lost profits. The consultant should maintain professional liability insurance, with proof provided to the client.

Common Questions on Consultancy Agreement

We follow a clear five-step process to draft your consultancy agreement

How Growthify Drafts Your Agreement?

1. Gather Details: We begin with an easy online form. You provide info on the parties, services, timelines, and fees.
2. Draft the Document: Our team writes the agreement, including sections for scope of work, payment terms, and obligations. For an IT consultancy, we might add data protection clauses.
3. Review for Compliance: Experts check it against Indian laws, like the Indian Contract Act, to make sure it is clear and strong.
4. Notarize if Needed: We suggest notarization for extra-legal backing, especially in high-stakes consultancies.
5. Deliver the Final Agreement: You get the document ready to sign. Review drafts and share thoughts as we go.

Why Choose Growthify?

Putting together a consultancy agreement alone can overlook key points, leading to risks down the line. Growthify uses our experience to craft balanced, effective agreements. Whether you consult for small firms or large ones, our platform makes it hassle-free. Clients say our drafts help them start projects with confidence and avoid common pitfalls.

When should I use a Consultancy Agreement?

Use it whenever you engage an external expert for:
1. Management or strategy consulting
2. IT/software development
3. HR, finance, or legal advisory
4. Marketing, branding, or digital services
5. Training, research, or compliance audits It’s essential for freelancers, agencies, startups, and corporate’s to avoid misclassification as employment.

Is a Consultancy Agreement different from an Employment Contract?

Yes. A Consultancy Agreement treats the consultant as an independent contractor (no PF, gratuity, or leave benefits). An Employment Contract creates an employer-employee relationship with statutory benefits under labor laws. Misclassification can lead to legal penalties.

Who owns the Intellectual Property created by the consultant?

By default, the consultant owns IP unless explicitly assigned. Our agreements include a full IP assignment clause transferring all rights (copyright, patents, designs) to the client upon final payment. We also add moral rights waiver and license-back if needed.

Can the consultant work for my competitors?

Yes, unless restricted. We include tailored non-compete clauses (example, 6–12 months, specific industry/geography) that are reasonable and enforceable under Section 27 of the Indian Contract Act. Overly broad clauses are void.

What if the consultant fails to deliver or breaches confidentiality?

Our agreements provide:
1. Performance milestones with acceptance/rejection criteria
2. Liquidated damages or service credits
3. Termination for cause (with notice)
4. Injunction rights for confidentiality breach
5. Indemnity for third-party claims