A contract for service, also known as an independent contractor agreement or consulting agreement, is a legal document that establishes a business relationship between a company (client) and an individual or entity (contractor) that provides specific services or expertise. It defines the terms and conditions of the engagement, including the scope of work, payment terms, duration, intellectual property rights, and other relevant provisions.

Example:

A company may engage a marketing consultant on a contract-for-service basis to develop and execute a marketing campaign. The contract would outline the specific deliverables, project timeline, compensation structure (such as a fixed fee or hourly rate), and any other relevant terms. The consultant, as an independent contractor, would have control over how they perform the work and may have other clients as well. In contrast to an employment contract (contract of service), a contract for service establishes a more independent and non-employee relationship between the client and the contractor. HR departments are responsible for ensuring that the nature of the engagement is properly classified and that the terms of the contract comply with applicable laws and regulations regarding independent contractors.