Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only. If you need legal advice with respect to becoming an independent contractor, you should seek professional assistance (e.g. make a post on Dynamic Lawyers). We have Ontario business lawyers in this regard. You can contact me directly at michael@carabashlaw.com.
As a follow up to my last blog, in this blog, I’ll be discussing some of the basic terms you may find in a standard independent contractor agreement.
Introductory Clause
Here, you’ll need to properly identify the parties (e.g. individuals, corporations, etc.) and date the agreement. The parties will be the “Client” (the party receiving and paying for the services) and the “Independent” “Contractor” (the party performing and being paid for the services). Identify the parties with utmost precision because if there are any mistakes here, you’ll be in a rough spot in case of a dispute. For example, the real person you may want to go after is in actuality not the person who signed the agreement!
Background
This part of the agreement includes information about the context and purpose of the agreement. It leads up to the actual body of the agreement. It’s important to identify here what business the Client is in and what services the Contractor will perform. These will ultimately become defined words – namely, the “Business” and the “Services” ¬– and used throughout the rest of the agreement. The Client will want to define its Business broadly to protect its interests (for example: by including a clause in the Agreement that ultimately prevents the Contractor from competing in the Business). Meanwhile, to limit its restrictions and liabilities, the Independent Contractor will want a narrow definition of the Business. There will definitely be some negotiating here! These things being said, the Services are typically described in a complete and accurate manner and can include both general and specific services. For example, this definition could say: “The Contractor offers professional graphic design services including, but not limited to, website layout design, logo design, photography, etc. (the “Services”)”.
Services
The main body of the agreement starts off with the Client agreeing to engage the Independent Contractor to perform the Services from time to time. Using the words “from time to time” means that the engagement just won’t happen when the agreement becomes effective (but could happen at any time during the Term of the Agreement). The Client will typically want those Services to be performed at certain standards ¬– for example, by a qualified, competent, and prudent worker engaged in the Business or according to the Client’s own internal rules, policies, and procedures. See how the defined term “Business” comes up here?
Without specifying these minimal standards, the Client may have a difficult time complaining about how the Services were performed later on. Sure, there may be negligence claims which can be raised above and beyond the agreement itself, but adding in provisions such as this can be IN ADDITION to negligence claims and can be more specific or comprehensive. This way, you’re not leaving it up to a judge to try to figure out how the Services were contemplated to be performed by the parties at the time they entered into the agreement.
In the next blog, I’ll finish up this discussion of independent contractor agreement terms…
Remember, if you need a lawyer to review, draft, revise, negotiate or resolve a dispute concerning an independent contractor | consulting agreement, make a post on Dynamic Lawyers or contact me directly at michael@carabashlaw.com.
In case you’re a Client and looking to engage the services of an Independent Contractor in Ontario, look no further:
Independent Contractor Agreement (Client) – No Statement of Work
This Agreement can be used by a Client who wants to engage the services of an Independent Contractor (e.g. a consultant, a professional, a general worker, etc.) without creating an employment relationship. The “Client” means that this Independent Contractor Agreement favours the Client – for example, through notice, termination, standards of care, and restrictive covenants, etc. The “No Statement of Work” means that the services to be performed by the Independent Contractor are dealt with in the actual agreement and not in a Schedule (attached and incorporated into the agreement as a “Statement of Work”). There will be different versions of this agreement which favour both the Client and the Independent Contractor and which may include Schedules. Schedules aren’t absolutely necessary. They’re just one way of having an agreement instead of writing things out in the actual agreement, you simply modify the Schedule. Here’s the sample Video Guide that comes with this Independent Contractor Agreement (Client) – No Statement of Work:
Now, if you happen to be looking for an Independent Contractor | Consulting Agreement with a Statement of Work, then you’re in luck. Just go here and scroll down and, voila! The “Statement of Work” means that there is a schedule in this particular Independent Contractor Agreement to describe the services (instead of writing everything out in the actual agreement, it’s included in a Schedule). Here’s the sample Video Guide that comes with this Independent Contractor Agreement (Client) – With Statement of Work:
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Note: this information and these sample video guides are NOT legal advice and are provided for informational purposes only. If you need an Ontario lawyer, go to Dynamic Lawyers and make a post.









