Do I Need An Advisory Agreement?

Business decisions and ventures often involve working closely with an advisor outside of the company. This has a number of benefits, such as having objective insights and expert advice.

However, working with external third parties also carries several risks. So, if your business is planning to work with an advisor, it’s important to clarify the expectations around your work relationship in writing.

This is where you would get an Advisory Agreement drafted for your business.

What Is An Advisory Agreement?

An Advisory Agreement sets out important details about your work arrangements with an advisor you choose to work with. It should outline matters like:

• Services to be provided
• Term and commencement date
• Fees
• Confidentiality

Intellectual Property

When working with external parties, the work relationship often involves handling confidential information that is crucial to the business’ success. This might include important trade secrets.

Naturally, you’d want to make sure this kind of information is kept secure to protect your business. Your Advisory Agreement should cover details around the use of Intellectual Property.

For example, you may want to include a Confidentiality Clause which outlines what information the advisor isn’t allowed to disclose or share with anyone else.

This kind of process is similar to a Collaboration Agreement. Similarly, you’re working with external third parties, so it’s important to take the right measures to protect inside information and your products.

For example, you might want to look into an IP Assignment Deed to ensure all IP ownership is yours. You want to make it clear to your advisor that the products you create are legally owned by you, and they cannot use it as their own.

What Is Included?

Sprintlaw offers an Advisory Agreement package for your business if you’re working closely with advisors, and want to make sure you’re protected. It includes:

• An Advisory Agreement tailored to your business
• Phone consultations with one of our expert lawyers
• A complimentary amendment to the final draft

Need Help?

When it comes to drafting agreements, it’s always a good idea to chat with a lawyer who knows how to meet your business’ needs. At Sprintlaw, we tailor our services to you so that the process is simple and stress-free.

If you would like a consultation on your options going forward, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.