Independent Contractor Agreement

Saptaparni Raha
Sep 22, 2022
2 min read

Written by Saptaparni Raha, Lawyer

Introduction:

The Independent Contractor Agreement is a legal document that covers the scope, obligations, and deadline of the work. Before entering into the agreement, it must be kept in mind that the client and independent contractor are not in an employer-employee relationship.

Benefits of the Agreement:

It helps in protecting the company's business interests.
It offers the protection of liabilities.
It helps in securing a company's assets.
It ensures that a freelancer receives the predetermined rate.
It offers professionalism.

Important Clauses:

The first clause helps in IP protection. The contracting party who introduced the idea has their sole claim.
In-service clauses define the rights, duties, and obligations of the contracting parties.
In the Time and Duration Clause, the contractor needs to mention the overall duration that they need to complete the task.
The Payment Clause discusses the expenditure of his service and the method of payment.
In the Representation and Warranties Clause, the parties specify the service, expertise, and resources they could bring as a part of their obligations.
The Confidentiality Clause discusses the information that should not be disclosed to any third party.
In the Liabilities, the Remedies and Indemnification Clause, the responsible party provides remedies for correcting their mistakes.

Conclusion:

Every company may hire an independent contractor but may not solely rely upon them. Employees need to get more priority than independent contractors. Before hiring any person as an independent contractor, the company must prepare proper legal documents to avoid any such legal disputes.

References:

Ironclad. What is an Independent Contractor Agreement? retrieved from What Is an Independent Contractor Agreement? | Ironclad (ironcladapp.com)
Kshitij Srivastava. (2021). Important provisions of the Independent Contractor Agreement (ICA) in India, retrieved from Important provisions of the Independent Contractor Agreement (ICA) in India
Ray Allen. Benefits of having an Independent contractor agreement. retrieved from What are the benefits of using an independent contractor agreement? - Quora