This independent contractor agreement is dated mm/dd/yyyy and defines the terms of service between ABC who will henceforth be referred to as ‘Company’ in this document and XYZ who will hitherto be known as ‘the contractor’.
1. Engagement of Services of XYZ as Independent Contractor
This Independent Contractor Agreement specifies that the company wishes to employ the services of XYZ, an independent contractor located at XYZ address. Details of services required are contained in the annexure titled Services. XYZ is expected to deliver all services and reports contained in the annexure as per the quality and time specifications outlined in the document.
2. Fees Applicable
According to Independent Contractor Agreements, the fees applicable for the services rendered have to be clearly defined in the contract. For the services contained in the Annexure, the company shall make the following payment.
2.1 Hourly Rate: $xxx per hour for time spent by the contractor on the services
2.2 Materials: Materials shall be charged as per invoices provided by the contractor on a monthly basis
2.3 Reimbursements: According to Independent Contractor Agreements, the company shall also be liable to reimburse the contractor for any expenses incurred by him during the course of his work.
2.4 Payment Modalities:
This section provides clarity as to the manner in which the company shall make payment to the contractor.
2.4.1 This Independent Contractor Agreement requires that the contractor submit an invoice not before the 5th of every month containing details of the hours spent and materials purchased in performance of the services rendered.
2.4.2 The company shall review the invoice and raise any clarifications before the 10th of the month.
2.4.3 Following invoice discussions, payment shall be made via check, cashiers order or cash to the contractor on or before the 15th of the month.
2.5 Other Liabilities
This Independent Contractor Agreement makes it clear that the company shall not be liable for any other expenses; fees or payments raised by the contractor other than those listed in sections 2.1 to 2.4 of this Independent Contractor Agreement
3. Tenure of the Contract
The Independent Contractor Agreement specifies that the contract shall extend for a maximum period of 6 months. All deliverables are expected to be completed within this time. In case the contractor is able to complete the services earlier than the date specified, the tenure will be reduced to such time as the contractor makes final delivery.
4. Relationship between the Company and the Contractor
Independent Contractor Agreements seek to clarify the relationship between the company and contractor for purposes of tax, employee benefits and other obligations:
4.1 This Independent Contractor Agreement does not imply any formal employer employee, partnership or franchise relationship between the contractor and company.
4.2 As is conventional with Independent Contractor Agreements, the contractor shall not have any rights to participate in any employee benefits, as the contractor does not enjoy such a status with the company.
4.3 Since the contractor is not an employee, the company shall not be required to deduct taxes, provide workers’ compensation, insurance or fulfill any other statutory obligation that normally accompanies employer employee relationships.
5. Proprietary Rights of Services Rendered
This Independent Contractor Agreement provides that services and materials delivered by the contractor fall into the category of ‘Works for Hire’. The proprietary rights of all such services rendered and materials produced shall rest with the Company once delivery is made.
The contractor shall have no proprietary rights over such deliverables, which are governed by copyright law in the United States.
6. Termination Clause
According to Independent Contractor Agreements, the contract can be terminated at any time under the following conditions:
6.1 Either party provides 60 days notice prior to termination of the Independent Contractor Agreement
6.2 In case of termination by the company, Independent Contractor Agreements require that the company make payments for actual services provided or materials purchased irrespective if delivery has been made.
6.3 In case of termination by the contractor, Independent Contractor Agreements require that the contractor hand over all materials and works in progress to the company with whom proprietary rights rest.
6.4 60 days notice is not required in the event that either party defaults on the terms specified in this Independent Contractor Agreement. In such a case an independent consultant may be introduced to arbitrate the matter.
This Independent Contractor Agreement is the sole contract between ABC and XYZ for the purposes of services contained in the Annexure. This cannot be amended without the written consent of both parties.