A Brief Introduction About the Business Development Agreement
A business development agreement is a contract between two parties in which one party agrees to provide the business development and consulting services to the other party or client. In such an agreement, the service provider requires certain terms to be mentioned clearly to avoid any disputes in the future. This means the business or the client has to explain the terms such as scope or description of expected services, terms of payment, dispute resolution and mediation, limitations of liability, termination clauses, timing, and expenses, etc. This piece of paper is crucial to protect the rights of the parties involved in the contract.
Who Takes the Business Development Agreement?
People involved in this agreement are the client who desires to obtain the business development services and the consultant who provides such development and consulting services. Such a consultant will provide the services after agree on the terms and conditions given in the agreement by the client. Such terms and conditions include the various parameters such as the scope of services, manner of performance, disclosure of material events, confidentiality agreement, indemnification, conflict of interest, payment services, representations and warranties, etc. will vary in the business development agreement template based on the service needed by the business client.
Purpose of the Business Development Agreement
The main purpose of this contract is to make the parties aware of their rights and limitations to enter into this contract. By reading this agreement, the consultant will understand what kind of services expected by the client from their side for which the agreement should be simple and easy to understand. When they read the agreement, the consultant will get to know the payment terms based on which they will try to negotiate for certain services. The agreement also defines the limitations of the consultant, like protecting business secrets.
Many business development services are providing different services and specialized in various skills such as business development skills, communication skills, negotiation skills, strategic skills, computer skills, project management skills, business intelligence skills, etc. The client has to choose the right business development service provider for developing their business without causing any issues.
Contents of the Business Development Agreement
The business development consulting agreement is mandatory before the consultancy company agrees to provide the business development service to its client. This agreement protects both the consultant and its client from illegal activities and maintains the whole process clear and transparent.
As already said, the agreement contains provisions in which the primary factor is the exact description of the service or the scope of work. This means the various business development services expected from the consultant. The next factor is avoiding the disclosure of technology or business secrets. The client enforces the fact that the consultant has not to disclose certain confidential information and avoid sharing with other clients to avoid an impact on the stock, business operations in the future.
In some business agreement contract template, they will also define the conflict of interest term, in which the consultant is not allowed to provide the services for other clients engaged in the business in which the client is engaged. Similarly, many other terms such as indemnification, conflict of interest, payment services, severability, governing law, representations and warranties, etc. are also clearly mentioned.
How to Draft the Business Development Agreement?
The first thing to include in the Business development agreement is the description of services. This means the business development consulting services has to clarify what services they will provide and not provide for their clients. The next thing is that your clients should know how much you charge for providing the service. These points have to be clarified and agreed upon before signing the contract. Though you will take care of the terms and conditions to avoid any conflicts, there will be a chance for conflicts. To avoid any disputes, the consultant has to limit their liability under applicable law. Finally, there should be a clear definition of termination clauses in an agreement.
If you are searching for a template for the business consulting contract, you should browse online and choose the right format according to your development services. There are several portals available from which you can download and customize it with the help of an attorney.
If the consultant needs some negotiations, then he/she can hire an attorney to request the client formally. Sometimes, when your compensations are not meeting the market standards, then you can make proper negotiations from the client.
Benefits & Drawbacks of the Business Development Agreement
- The first thing is that the contract protects the rights and interest of both the parties
- The agreement helps the client to get the desired income from the business by implementing business development strategies. So, it promotes business growth in a favorable way
- The contract helps the company in getting better business development services
- The contract saves both the parties from any illegal exploitations
- The contract keeps all the terms and conditions in an organized way
- The contract restricts the consultant to provide the service for other clients engaged in the same business as the client
- The business will face issues when the consultant discloses the business secrets to its other clients
What Happens in Case of Violation?
The Business development agreement defines how either party such as company and consultant can terminate the contract(1). For example, the consultant can terminate the agreement if the client continues to provide the wrong information to you. But terminating the contract would affect your compensation. Hence, go by legal actions to get your payments from the client.
Thus, the agreement is something that you must have when you own a business. Though it is a piece of paper, it will provide the best results for your business. With this contract, the business and the consultant can avoid many difficulties when either of the party violates the agreement(2), as one can deal with it legally using the agreement as proof.