When you undertake to execute some work for your client, you may take the service of an independent contractor, who will work for the client on your behalf. But there are chances that the work performance of the contractor may be very good and your client may try to lure him in his team, which can be detrimental to your business secrets. Such scenario not only makes you loose the service of very good contractor but may also spoil the further business relation between you and your client.
To avoid such unpleasant happenings, a 1099 Contractor Subcontractor Agreement is drawn up to safe guard the interest of the business. A 1099 Contractor Agreement has the provisions about the consultant and an independent contractor, who has been employed to execute specific service to the client.
Features of Contractor Subcontractor Agreements
Independent Contractor Agreement covers following given concerns:
With such agreement, the consultant and independent contractor understand their basic duties and responsibilities. The execution of the client project or work can also be carried out successfully due to clear guidelines written on the Agreement. The consultant can also safeguard his intellectual property rights and can keep his business secrets confidential.
It is also advisable for the consultant to take the assistance of the legal advisor, while formulating Contractor Subcontractor Agreement.
The following given Contractor Subcontractor Form, would help you, while formulating your own contract agreement. You can modify the changes as per your own requirements:
INDEPENDENT CONTRACTOR AGREEMENT FORM
INDEPENDENT CONTRACTOR AGREEMENT
[INSERT NAME OF INDEPENDENT CONTRACTOR]
[INSERT THE NAME OF YOUR ORGANIZATION]
The following are parties to this independent contractor agreement: [Name and address of independent contractor], referred to in this agreement as “Contractor”, and [Name and address of your organization], referred to in this agreement as “Organization”.
The parties to this agreement agree as follows:
Section 1. Engagement of Contractor. Subject to the terms of this agreement, the Organization engages the Contractor as an independent contractor to perform the services provided under this agreement. The Contractor accepts this engagement.
Section 2. Services, Term, Compensation, and Expenses.
(a) The Contractor will provide the following services to the Organization: (b) The term of this agreement is from _________________, 20–, through ______________. 20–.
(c) The Organization will pay compensation to the Contractor in the amount of $__________ for services provided under this agreement. Payment of this amount shall be made to the Contractor as follows: [If payment is to be made periodically, state the amount and dates of each payment; if payment is to be made in one lump sum, state the date of payment.]
(d) In addition to compensation payable under subsection (c) of this section, the Organization also agrees to reimburse the Contractor for reasonable and approved out-of-pocket expenses in providing services under this agreement. Expenses for time spent by the Contractor in traveling to and from Organization facilities are not reimbursable. The Contractor shall submit an invoice to the Organization for reimbursement not later than the 10th of each month for expenses incurred during the prior month.
Section 3. Work Product.
(a) All inventions, discoveries, developments, research and product of research, and innovations of the Contractor related to the services provided by the Contractor for the Organization under this agreement shall be the exclusive property of the Organization. The Contractor assigns all right, title and interest in the same to the Organization.
(b) All inventions, discoveries, developments, research and product of research, and innovations of the Contractor conceived by the Contractor prior to the term of this agreement and used by the Contractor in providing services to the Organization under this agreement are licensed to the Organization for use in its operations and for infinite duration. The license is non-exclusive and may be assigned with the Contractor’s prior written approval by the Organization to any subsidiary of the Organization.
Section 4. Termination. The Organization may terminate this agreement at any time on 10-days prior written notice to the Contractor. However, the Organization may terminate this agreement without prior written notice to the Contractor if the Contractor materially breaches any provision of this agreement, is convicted of any crime, is involved in criminal or civil litigation involving a youth player (as defined by US Youth Soccer), fails or refuses to comply with the written policies or reasonable directive of the Organization, or is guilty of serious misconduct in connection with the performance of this agreement.
Section 5. Independent Contractor Status. The parties are independent contractors, and this agreement does not make the Contractor an employee, partner, agent of, or joint venturer with, the Organization for any purpose. The Contractor is, and will remain, an independent contractor in the Contractor’s relationships to the Organization. The Organization is not responsible for withholding taxes from compensation paid to the Contractor under this agreement. The Contractor shall have no claim against the Organization under this agreement or otherwise for vacation pay, sick leave, retirement benefits, social security, workers compensation, health or disability benefits, unemployment insurance benefits, or employee benefits of any kind.
Section 6. Insurance. The Contractor will carry liability insurance related to services performed for the Organization under this agreement.
Section 7. Assignment. The Contractor may not assign any of the Contractor’s services under this agreement, or delegate performance of those services, without the prior written consent of the Organization.
Section 8. Entire Understanding and Amendment. This agreement is the entire agreement of the parties, and any prior agreement, understanding, and representations are terminated and cancelled in their entirety and are of no further effect. No amendment, change, or modification of the agreement is valid unless made in writing and signed by the parties.
The parties to this agreement execute this agreement through its authorized representatives as follows:
[Contractor Name]______ [Organization Name]________________
By: __________________ By: _____________________________
Printed Name: __________ Printed Name: ___________________
Title: __________________ Title: _________________________
Date: ____________, 20– Date:________________________, 20–