An Advisory Agreement under UK law is a legally binding contract commonly used between a company or individual seeking guidance, expertise, or advice (the "Client") and a professional advisor or consultancy (the "Advisor"). This template governs the terms and conditions of the advisory relationship, outlining the nature of the advice to be provided, the scope of services, payment terms, confidentiality obligations, and other important provisions.
The agreement typically starts by defining the roles and responsibilities of both parties, specifying the specific subject matter or industry in which advisory services will be rendered. It further lays out the duration of the agreement, whether it is a one-time consultation or an ongoing advisory relationship, and any termination provisions.
The scope of services section specifies the type and extent of advice to be provided, including the methods, resources, and timeframes necessary for the Advisor to complete their role effectively. It may outline the expected deliverables, milestones, or meetings to be scheduled throughout the engagement.
In terms of payment, the agreement generally stipulates the compensation structure, such as fixed fees, hourly rates, or retainer arrangements. It may also include reimbursement provisions for any reasonable expenses incurred by the Advisor during the engagement. The payment terms, including due dates and invoicing procedures, are usually detailed to ensure clarity and smooth financial transactions.
To protect the confidentiality of sensitive information shared during the advisory engagement, the agreement commonly includes robust confidentiality provisions. These provisions govern the handling, protection, and non-disclosure of confidential information exchanged between the parties, preserving the integrity and commercial value of such information.
Other notable clauses may include provisions related to intellectual property rights, dispute resolution mechanisms, jurisdiction, and any additional terms or conditions agreed upon by both parties.
Overall, an Advisory Agreement under UK law aims to establish a clear and comprehensive framework for the advisory relationship while legally safeguarding the rights and interests of both the Client and the Advisor.