A business advisory agreement is a legally binding document that outlines the terms and conditions of an engagement between a business advisor and a client. The agreement serves to protect the interests of both parties and ensure that expectations are clearly set from the onset.
A sample business advisory agreement should include several key elements. These elements include:
1. Scope of Work: This section should outline the specific services that the business advisor will provide. It should include a clear description of the work to be done and any expected deliverables.
2. Compensation: The compensation section should include details on the fee structure, payment terms, and any additional expenses that may be incurred during the engagement.
3. Term and Termination: This section should outline the duration of the engagement and any terms for early termination.
4. Confidentiality: The confidentiality section should outline the measures that will be taken to protect any sensitive or confidential information shared during the engagement.
5. Liability: The liability section should outline the responsibilities and limitations of both the business advisor and the client. It should include any indemnification clauses and disclaimers of liability.
6. Governing Law and Dispute Resolution: This section should outline the jurisdiction and governing law that will apply to the agreement. It should also include any dispute resolution procedures, such as mediation or arbitration.
It is important to note that a sample business advisory agreement should be tailored to the specific needs of the engagement and the parties involved. It should also be reviewed by legal counsel to ensure that it is legally sound and enforceable.
In summary, a well-written business advisory agreement is an essential tool for businesses seeking the guidance and expertise of a business advisor. By clearly outlining the terms and conditions of the engagement, both parties can work together towards achieving their goals and objectives.