Contractor Agreement (Client)

Why Use a Contractor Agreement?

A Contractor Agreement is a crucial legal document that establishes a formal relationship between your business and an independent contractor. This agreement outlines the terms and conditions for the contracted work, ensuring that both parties are clear on their responsibilities and expectations. Whether you’re hiring a freelancer, consultant, or specialist, a well-drafted agreement is key to a successful collaboration.

Define the Nature and Scope of Work

A Contractor Agreement clearly describes the work the contractor is expected to complete, including the project’s scope and objectives. By setting specific expectations, both parties can ensure a smooth and efficient working relationship.

Establish Payment Terms and Schedules

Outline the payment terms, including the amount, payment schedule, and any applicable milestones. This ensures that both parties are in agreement on financial matters and can prevent potential disputes down the road.

Address Liability and Confidentiality

Protect your business by including clauses on liability and confidentiality in your Contractor Agreement. This ensures that the contractor is held responsible for any damages caused during the project and that they maintain the confidentiality of your sensitive information.

Clarify Obligations and Responsibilities

This agreement details the obligations and responsibilities of both parties, such as compliance with policies, communication, and milestones. This helps to keep the project on track and fosters a strong working relationship.

Implement Dispute Resolution Mechanisms

In the event of a disagreement or dispute, a Contractor Agreement provides mechanisms for resolving issues. This can include negotiation, mediation, or arbitration, allowing both parties to address concerns in a fair and efficient manner.

When to Talk to a Lawyer or Get a Quote

You should Talk to a lawyer or Get a quote if you:

  • Want advice on this agreement;
  • Want to tailor this agreement.

Our Contractor Agreement is designed to be a starting point for businesses that wishes to engage a contractor, but we still recommend getting legal advice about it.

We recommend consulting a lawyer (such as Attune Legal) if you need help creating a Contractor Agreement or tailoring it to your business needs. This will ensure that it reflects what you have negotiated with your contractor, while protecting your interests and complying with the law.

Tailoring is when a lawyer customizes an automated legal document to meet your specific needs. This process starts with a consultation, after which you will complete a form to generate the initial draft of the document (if you haven’t already generated a DIY legal document). The lawyer will amend the document in line with what was discussed during the consultation, then send it to you for review. Once all reviews are complete the document will be finalised for use, or eSigning (if applicable).

A review is when you send feedback to the lawyer on a tailored document, and they make changes or respond to your comments. Feedback should be made by commenting directly within the document. Tailoring includes two reviews as standard. This is usually more than sufficient. Additional reviews may be charged separately if needed, so it is recommend you thoroughly check and comment on the document before returning it to the lawyer.

eSigning is when a document is executed by collecting an electronic signature from a party to make it legally binding, instead of printing and signing on paper. This is achieved by using a third-party service such as HelloSign that will send a link to the email of each party required to sign the document. The recipient will then follow the link and sign the document using their computer or mobile device. The system will record when they viewed and signed the document as well as from which IP Address. We recommend all our documents be signed electronically, and will manage the process for each tailored document with which eSigning is included.

Mode.law offers document automation services in addition to our tailoring services. If a tailored document is intended to be used repeatedly, mode.law can create a reusable form within your mode.law account. The form can be used to generate new documents based on your tailored template. The form will complete the main variable information that will differ such as (for example) new counter parties, purchase orders or statements of work. This speeds up your business processes, and makes things efficient to tailor when you need a few additional changes. Fees for document automation can be quoted during a consultation.