A Contractor Agreement is entered between a company and a contractor hired by them to perform specific project. A Contractor Agreement defines the overall terms and conditions, roles, rights and obligations of both the parties regarding the overall work to be undertaken by a contractor. The difference between an employee and a contractor is, that with a contractor you only state the final job that is to be done, and not about methods, timings, materials used etc. The major elements of Contractor Agreement are defining the scope of work, duties and obligations of contractor and the company, termination, confidentiality, non-compete, etc.