A Consultancy Agreement protects the rights of both, the company as well as the consultant while setting responsibilities and obligation for the involved parties, making sure that both the parties are treated fairly. A well-drafted Consultancy agreement leaves no room for ambiguity thereby reducing legal liabilities arising in the future. The agreement may include restrictive covenants such as non-compete and non-solicitation clause, which ensures that Consultant shall not start a business of his own, based on the same idea and solicit organization’s other employees, clients, distributors or service providers to leave the organization and join him after terminating his engagement with the Company.