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Independent contractor agreements protect each party’s interests

| Sep 28, 2018 | Business Organizations |

Any time anyone enters into a business relationship with someone else, it can always be helpful for the two parties to draft a contract. It should define their relationship with one another, what services will be provided and for what amount of pay, as well as liabilities, that one or both may assume. Drafting such a contract can be beneficial for both parties involved.

At the beginning of that agreement, it should clearly define the role of the party that is carrying out the work as either a contractor or consultant. Having this clearly stated will be critical if further clarification is needed about your employee classification. It can also affect how you’re able to file taxes.

The next detail that should be described in the agreement is what the project is that a client is asking their contractor to carry out. It’s important that any deliverables, the method of delivery and time frames for having them completed are all clearly defined here. It may be prudent for both parties to discuss contingencies for dealing with unforeseen setbacks here as well.

Each party’s responsibilities should also be discussed in the independent contractor agreement. This section could include almost anything from a client’s preferred communication method to whether the contractor is required to take out insurance before commencing work.

The price that you two have negotiated, intervals at which payments should be made and what your preferred payment method is should also be addressed in this agreement.

Just in case either one of you wants to terminate the contract, you should detail the conditions for being able to do so here.

Who the contractor is allowed to discuss their work on the project with and whether they’re able to reuse any portion of the work that they complete for other purposes should also be written into the contract.

Drafting an independent contractor agreement gives both parties a way of understanding what their expectations are and what compensation is due for meeting them. A St. George business attorney can advise you what’s critical to include in such an agreement to ensure that your interests are protected.