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When an independent contractor and service provider come together to form a business proposition, an official agreement is signed between them to acknowledge the future prospects of the business. This official document dictates the particulars of the partnership and governs the roles and responsibilities of both the independent contractor and the service provider.



An independent contractor can be an individual, a company, or a business that provides goods and services to a service provider under specified terms which are officially recorded.

This agreement is an official record, capturing all the essential details of the partnership, and can also be used in the court of the law, if needed. The details it consists of are:

    • Duration of the service: Specifics of the duration of the contract
  • Duties, terms, and compensation: Details of the duties, responsibilities, and compensation that both parties (contractor and the service provider) have to undertake
  • Expenses incurred: During the time of the contract, the contractor will bill, and the service provider will reimburse all the reasonable expenses
  • Confidentiality information: Both the contractor and the service provider agree to keep company information confidential
  • Intellectual property rights: Ownership and rights of the product and service have to acknowledged by both the parties
    • Warranty details: Product and service warranties must be stated and agreed upon by both the parties
  • Information about merger and termination: Details of expansion and merger of the company at a later stage, and details of termination of the contract must be clearly stated
    • Right to injunction: This basically means that both the parties (independent contractor and the service provider) acknowledge and give a special value to the services rendered and it cannot be compensated by damages in any action of law. It can’t also be breached by the contractor
    • Insurance details: The contractor will be carrying the liability insurance related to the service that the company offers. This also includes malpractice insurance
  • Details about conflict of interests: The contractor must enter the agreement in a free will and it should not conflict with any other agreement between the contractor and a third party

This agreement also captures basic details of the independent contractor and the service provider like the address, phone number, complete name of both the parties, company names, and the date when the agreement was signed.

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