FACULTY OF BUSINESS SPECIALTIES

INTERNATIONAL TRADE AND FINANCE

INTERNATIONAL CONTRACT

CONTRACT FOR AN INTERNATIONAL SERVICE

TUTORIAL WORK

NAME:
Valle Gonzalez, Maholly Mishelle

LECTURER:
Vera Fernández, Luis Edén

GUAYAQUIL, 2017
Contenido
Origins and developments ............................................................................................................. 3
Definition ...................................................................................................................................... 3
Parties to the contract ................................................................................................................... 4
Main Parties and Clauses .............................................................................................................. 4
MODEL OF INTERNATIONAL CONSULTING CONTRACT ................................................ 6
For Creating a Consulting Contract ............................................................................................... 7
Conclusion.......................................................................................Error! Bookmark not defined.
Bibliografía .................................................................................................................................... 9
 International consulting contract

Origins and developments

Consulting goes back to the origins of human relationships. According to Professor
Paulo Ricardo Becker Jacinte, in ancient Greece, the priests of the oracle of Delphi
gave their advice based on their systematic and intelligent observations of natural
phenomena, were understood at that time as predictions of beings chosen by the gods
and endowed with special powers
It was not until the early twentieth century that the consultant came to win the now
well-defined and characterized activity patterns. Especially in the 40s and 50s in the
United States and Western Europe there were important advances in the systematization
of consulting work with very technical and scientific ties, together with experience and
based on theories, but always with a focus on practical solutions.
It can be concluded that the consultancy is the transmission of the knowledge and
experience of a man or a team of experts towards others in order to more easily achieve
a human goal. Essentially, it is the constant search for knowledge prepared for the
benefit of others. In the words of Peter Becker, "Consulting at its best is an act of love:
the desire to be truly useful to others, to use what is known, or felt, or suffered in the
way to lessen the burden of the rest".

Definition

This type of agreement is typically used by international consulting firms or

professionals, and where one of the parties (Consultant) establishes the conditions of its
services proposal to the other party (Client). These contracts are usually used for a
specific project within a wide range of areas (management, market research, human
resources, corporate strategy, engineering, IT, etc.).

In the most important aspects of the contract (fees and expenses, Intellectual Property
Rights, applicable law and competent jurisdiction, etc.) a number of alternatives have
been provided, for the most appropriate one to be selected according to who drafts the
contract (Consultant or Client). To ensure a contract that best suits your needs, for some
specific aspects of the contract (fees and expenses, Intellectual Property Rights,
applicable law and competent jurisdiction, etc.) we have listed a number of options for
you to choose from according to who drafts the contract (Consultant or Client).
Parties to the contract

Usually both the Service Provider and the Client are companies. For each party, the
following has to be included:

• Name of company, full address and nationality.

• Company type: public limited company, limited liability company, etc.

• Name and position of company representative who signs the agreement.

• Tax ID number of both parties.

Main Parties and Clauses

Clauses in the International Consulting Contract are as follows:

1. Consulting services
2. Obligation of the consult
3. Schedule and duration of the services
4. Fees
5. Expenses
6. Information and approval
7. Intellectual Property Rights
8. Personnel
9. Status of the Consultant
10. Responsibility
11. Penalty for delays
12. Termination of the contract
13. Subcontracting
14. Confidentiality
15. Law applicable and competent jurisdiction
16. Language
17. Taxation

Some of the most important clauses in the International Consulting Contract are as
follows:

1. Consulting Services

The scope of the Services to be provided to the Client by the Consultant is set out in
Annex 1. If the Client requires any additional services or any change to the agreed
Services, the Consultant will be entitled to an adjustment of the fees and an estimate of
the additional fees which may be due will be provided to the Client upon request.

2. Obligations of the consultant

2.1 The Consultant will perform all his obligations to a good professional standard.

2.2 The Consultant will dedicate such of his time, attention and resources to
providing the Services as may be necessary for its satisfactory and timely competition.

2.3 The Consultant will keep the Client informed as to the progress of the services
provided and, in particular, will promptly give information about progress upon request.

2.4 The Consultant will comply with all reasonable request and directions of the
Client related to de Services, and will comply with all regulations in force in the country
of the Client.

3. SCHEDULE AND DURATION OF THE SERVICES

3.1 The Consultant will provide the Services in accordance with the timetable table
set out in the Schedule of Annex 2.

3.2 If the commencement date for the Services is not agreed in advance, the Services
will be treated as having commenced on the date the Consultant begins to carry out any
of the Services to the Client.

3.3 The Services will continue until they are completed, unless the appointment is
terminated early in accordance with the terms of this Contract.

4. FEE

4.1 The total amount of fees that the Client pays to the Consultant for the Services
rendered shall be include amount and currency. The total fees will be set according to
the fees established in Annex 1 of this Contract
 MODEL OF INTERNATIONAL CONSULTING CONTRACT
This contract is used by the consulting companies to establish the proposal of services
to their international clients.

INTERNATIONAL CONSULTING AGREEMENT

DATE:
...........................................................................................................................................

FROM ONE SIDE,

Alternative A [When the Consultant is a company]

……………………….……. [Alternative A [When the Consultant is a company]

…………………..……… [Name of the company], with registered office in

.........................., represented by .......................................................................
[Name and surnames, position] (

hereinafter, "the Consultant").

Alternative B [When the Consultant is an independent physical and professional

person]

Don / Doña ............... .., of legal age, .................. .. [include professional title], with
address in .................. ...... [address, city, country] and Fiscal Identification number
............ .., acting in their own name and interest (hereinafter, "the Consultant").
AND FROM ANOTHER,

......................... [Corporate name of the company], with address in.....................

[Address, city and country] and identification number / fiscal register .................. ......,
represented by
 .................................................. ............ [Name and surname, position] (Hereinafter,
"the Client").

Both Parties recognize mutual legal capacity to bind themselves and state that:

.. I. The Consultant is an expert in the field of............ [Describe the activities of the
Consultant] ............................... and possesses the knowledge and technical and human
resources to provide services related to said field of activity (hereinafter, "the
Services").

II. The Client has appointed the Consultant to provide the Services under the terms and
conditions of this Contract.

I. Both parties have agreed to enter into a Consulting Agreement in accordance with the
following agreements:
1. Consulting services
2. Obligation of the consult
3. Schedule and duration of the services
4. Fee

For Creating a Consulting Contract

You need to kwon that for creating a consulting contract:

The first thing to consider is that there’s the provider and the receiver of services. The
things that would matter to the person providing those services may not be the same
things that matter to the person receiving those services. When you’re providing
services, our recommendation is to create your own standard agreement that you use for
all your clients. This may get amended based on each of your clients. However, one
thing you should consider is if there any exclusivity in this contract. In other words, you
want to ensure that there isn’t something in this contract that says, “I can only now
provide services to this particular person or this particular company and nobody else.”

The second thing to consider is if you are providing these services as an individual
through a sole proprietorship or are you setting it up through a corporation that is
important to consider because of the tax implications. You may find that a company can
give you a wider range of expenses that might bring your taxable income down from an
actual person or individual or sole proprietor that’s running the same type of business.
You might find that you have more leeway and more control over money that’s coming
into the corporation rather than a sole proprietorship. The other difference between a
sole proprietorship and corporation is protection.

The next point to consider is that your contract has some liability language inserted in to
the contract. What that means, is that you have stated clearly in your contract what you
will and will not be responsible for and what you will produce for the duration of the
contract. Now just having liability language into the contract won’t protect you fully in
the event of a mistake or mix up. That’s why we recommend that you get some type of
liability insurance in event that something does happen. Something that is often
overlooked is how and when do you as the service provider get paid.

Have something in your agreement that explicitly states when you are going to invoice
the client and when they need to pay you for your services.
Bibliografía
Global Negotiator. (s.f.). Obtenido de http://www.globalnegotiator.com/en/international-
consulting-contract-template

International consultinng contract . (2017). Obtenido de

https://es.slideshare.net/easylegalhelp/everything-that-you-need-to-know-when-
creating-a-consulting-contract?qid=79b3953f-a489-4da6-9470-
e9e8261c4f1e&v=&b=&from_search=7

International consultinng contract. http://www.globalnegotiator.com/files/international-

consulting-contract-template-sample.pdf

http://internationalcustomsconsulting.com/wp-
content/uploads/2013/02/StandardAgreement.pdf
1. How many parts are there in the international consulting contract and
write what does each of them mean?
There are two where one of the parties (Consultant) establishes the conditions of its
services proposal to the other party (Client).

2. Mentions the most important clauses in the International Consulting

Contract
Consulting services

Obligation of the consult

Schedule and duration of the services

3.