The Third Party Contractor Agreement is essential for businesses operating in Nigeria that engage external service providers or consultants. This document is designed to comply with Nigerian legislation while protecting both parties' interests in a contractor relationship. It's particularly important given the need to clearly distinguish independent contractors from employees under Nigerian labor law. The agreement covers crucial aspects including scope of services, payment terms, intellectual property rights, confidentiality, and dispute resolution mechanisms. It's structured to accommodate various types of contractor relationships while ensuring compliance with relevant Nigerian regulations including the Labour Act, CAMA 2020, tax laws, and data protection requirements. This agreement is commonly used when engaging professional services, technical expertise, or specialized skills on a project or ongoing basis.
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1. Parties: Identifies and provides details of the contracting parties - the company and the contractor
2. Background: Sets out the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope of Services: Details the contractor's appointment and describes the services to be provided
5. Term and Termination: Specifies the duration of the agreement and circumstances for termination
6. Contractor's Obligations: Lists the contractor's duties, responsibilities, and performance standards
7. Company's Obligations: Outlines the company's responsibilities and commitments
8. Fees and Payment Terms: Details the compensation structure, payment schedule, and invoicing requirements
9. Independent Contractor Status: Clearly establishes the independent nature of the relationship and disclaims employment status
10. Intellectual Property Rights: Addresses ownership and rights to work products created during the engagement
11. Confidentiality: Protects confidential information and trade secrets
12. Data Protection: Ensures compliance with Nigerian Data Protection Regulation
13. Liability and Indemnification: Sets out liability limitations and indemnification obligations
14. Insurance: Specifies required insurance coverage
15. Dispute Resolution: Establishes procedures for resolving disputes
16. Governing Law: Confirms Nigerian law as governing law and jurisdiction
17. General Provisions: Includes standard boilerplate clauses such as force majeure, notices, and amendments
1. Non-Compete: Restricts contractor from competing activities - include when contractor will have access to sensitive competitive information
2. Non-Solicitation: Prevents solicitation of employees/clients - include for contractors with significant client/employee contact
3. Equipment and Resources: Details any company-provided equipment - include when company provides significant resources
4. Health and Safety: Specifies health and safety requirements - include for on-site services or high-risk activities
5. Performance Metrics: Establishes KPIs and performance standards - include for long-term or complex services
6. Training Requirements: Specifies required training or certifications - include when specific qualifications are needed
7. Subcontracting: Addresses ability to subcontract - include when subcontracting might be relevant
8. Force Majeure: Detailed force majeure provisions - include for long-term or critical services
1. Schedule 1 - Services Description: Detailed description of services to be provided
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule 3 - Service Levels: Specific performance metrics and service level requirements
4. Schedule 4 - Key Personnel: Names and roles of key contractor personnel assigned to the project
5. Schedule 5 - Company Policies: Relevant company policies contractor must comply with
6. Appendix A - Required Insurance Coverage: Detailed insurance requirements and minimum coverage amounts
7. Appendix B - Approved Subcontractors: List of pre-approved subcontractors if applicable
8. Appendix C - Equipment List: Inventory of any company-provided equipment or resources
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