The Advisor Contract serves as a fundamental legal instrument for establishing professional advisory relationships in India, designed to protect both the client's and advisor's interests while ensuring regulatory compliance. This document is essential when engaging individual consultants, professional firms, or subject matter experts for providing specialized advice, strategic guidance, or technical expertise. The contract addresses key aspects such as scope definition, compensation, confidentiality, and intellectual property rights, while incorporating specific requirements under Indian law, including the Indian Contract Act, 1872, GST regulations, and professional service tax obligations. It's particularly relevant in today's business environment where organizations increasingly rely on external expertise for strategic decision-making, operational improvement, and specialized knowledge transfer.
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1. Parties: Identification of the client and advisor, including full legal names, addresses, and registration details if applicable
2. Background: Context of the advisory relationship and brief description of the advisor's expertise and client's requirements
3. Definitions: Key terms used throughout the agreement defined for clarity and consistency
4. Scope of Services: Detailed description of the advisory services to be provided, including specific deliverables and exclusions
5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination by either party
6. Fees and Payment Terms: Compensation structure, payment schedule, expenses, and applicable taxes
7. Obligations of the Advisor: Key responsibilities, professional standards, and performance expectations
8. Obligations of the Client: Client's responsibilities, including providing necessary information and cooperation
9. Confidentiality: Protection of confidential information, trade secrets, and client data
10. Intellectual Property Rights: Ownership and usage rights of materials created during the engagement
11. Representations and Warranties: Statements of fact and promises made by both parties
12. Limitation of Liability: Caps on liability and exclusions of certain types of damages
13. General Provisions: Standard clauses including notices, governing law, dispute resolution, and entire agreement
1. Non-Compete: Restrictions on advisor's ability to work with competitors, used when sharing sensitive industry information
2. Non-Solicitation: Prevents advisor from soliciting client's employees or customers, relevant for internal advisory roles
3. Insurance: Requirements for professional liability insurance, important for high-risk advisory services
4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant post-COVID
5. Compliance with Laws: Specific regulatory compliance requirements, important for regulated industries
6. Assignment: Rights to transfer the agreement, relevant for large organizations or potential M&A scenarios
7. Severability: Ensures remainder of agreement stays valid if some provisions are found unenforceable
1. Schedule A - Scope of Services: Detailed breakdown of services, deliverables, and timelines
2. Schedule B - Fee Schedule: Detailed fee structure, payment milestones, and expense categories
3. Schedule C - Key Personnel: List of key advisor personnel assigned to the engagement
4. Schedule D - Service Levels: Performance metrics and service level expectations if applicable
5. Appendix 1 - Compliance Requirements: Specific regulatory or industry compliance requirements
6. Appendix 2 - Confidentiality Agreement: Detailed NDA terms if required beyond main confidentiality clause
7. Appendix 3 - Report Formats: Templates or formats for required reports and deliverables
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