A consulting agreement establishes the terms of a relationship between a consultant and client, whether a business or individual. A consulting agreement defines the relationship and establishes rights and duties of the two parties for the services sought. This type of agreement can vary in complexity but it is vital that all consulting agreements establish the scope of work. This means a consulting agreement needs to describe the services the consultant will provide the client or hiring party, and how much the consultant will be compensated. The definition of the scope of employment should be specific and should include whether the consultant will be reimbursed for incurred costs.
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