A legally enforceable document is called a Consulting Agreement or a 'Contract'.
You need it when you either:
- As a business owner or enterprise manager, plan to hire an independent consultant or commonly known as a freelancer, or
- As a consultant you are planning to get hired (and get paid as well)
In my career, both as a consultant and as a mid-size business owner, I have seen that both parties at some time or the other make mistakes that can cost them not only in terms of dollars but also in precious time! These mistakes can be avoided if you have prior knowledge on how to frame correct 'consulting contracts' either as a business owner or an independent consultant.
Few pointers that may help you in long run are as follows (non exhaustive list)...