Document background
A Contractor Agreement is essential when a company in Pakistan wishes to engage external services without creating an employer-employee relationship. This document is crucial for businesses operating under Pakistani jurisdiction that need to formalize arrangements with independent contractors, whether individuals or entities. The agreement must comply with the Contract Act 1872 and other relevant Pakistani legislation, including tax and labor laws. It typically covers key aspects such as service scope, payment terms, intellectual property rights, confidentiality, and liability provisions. The Contractor Agreement helps protect both parties' interests by clearly defining roles, responsibilities, deliverables, and the independent nature of the relationship, while ensuring compliance with local legal requirements and business practices.
