The Advisory Agreement serves as a fundamental legal instrument in the Indian business environment, establishing professional advisory relationships across various sectors. This document is essential when engaging external expertise or professional guidance, whether for strategic, financial, technical, or operational matters. The agreement, governed by Indian law, particularly the Indian Contract Act, 1872, outlines crucial elements including scope of services, compensation, confidentiality, and professional obligations. It protects both the advisor's and client's interests while ensuring compliance with relevant regulatory requirements. This type of agreement is particularly important in today's complex business landscape where specialized knowledge and expertise are frequently required for informed decision-making and business growth.
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1. Parties: Identifies and provides details of the advisor and the client, including their legal status and registered addresses
2. Background: Contextual information explaining the purpose of the agreement and the general nature of advisory services to be provided
3. Definitions: Defines key terms used throughout the agreement to ensure clarity and prevent misinterpretation
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 and conditions for termination by either party
6. Fees and Payment Terms: Compensation structure, payment schedule, and terms including expenses and taxes
7. Obligations of the Advisor: Key responsibilities and commitments of the advisor, including service standards and professional conduct
8. Obligations of the Client: Client's responsibilities including providing necessary information and cooperation
9. Confidentiality: Provisions for protecting confidential information shared during the advisory relationship
10. Intellectual Property: Ownership and usage rights of materials and deliverables created during the engagement
11. Limitation of Liability: Extent and limitations of the advisor's liability for services provided
12. Force Majeure: Provisions for handling circumstances beyond parties' control
13. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution
14. Notices: Process and requirements for formal communications between parties
15. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Non-Compete: Restrictions on advisor's ability to work with competing clients - include when dealing with sensitive industry information
2. Non-Solicitation: Prevents either party from soliciting employees or clients - relevant for long-term engagements
3. Insurance: Requirements for professional indemnity insurance - important for high-value advisory services
4. Compliance with Laws: Specific regulatory compliance obligations - necessary for regulated industries
5. Data Protection: Detailed data handling and privacy provisions - essential when personal data processing is involved
6. Assignment: Rights to transfer the agreement - relevant for corporate restructuring scenarios
7. Conflict of Interest: Procedures for identifying and handling conflicts - important for financial advisory services
8. Performance Metrics: Specific KPIs and performance standards - useful for long-term or complex advisory arrangements
1. Schedule A - Scope of Services: Detailed breakdown of specific advisory services, methodologies, and deliverables
2. Schedule B - Fee Structure: Detailed fee calculations, payment milestones, and expense categories
3. Schedule C - Key Personnel: List of key team members and their roles in providing the advisory services
4. Schedule D - Service Levels: Specific performance standards, response times, and quality metrics
5. Schedule E - Compliance Requirements: Specific regulatory or industry compliance requirements applicable to the services
6. Appendix 1 - Required Documents: List of documents and information to be provided by the client
7. Appendix 2 - Reporting Templates: Standard formats for progress reports and other regular communications
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