Frequently Asked Questions  about Consulting Agency Agreement

Q: Who drafted CAA?

A:  Most of content is coming from CAA with our largest customers and it is copy/pasted to our CAA with partners in order to have back-to-back agreement. As you may know – there is little chances vendors can re-negotiate (or even try to renegotiate) terms of agreements with large customer companies – it is mostly is take it or leave it.  Taking into account this, we do not have much freedom to change certain clauses or eliminate them.

Q: Can we introduce any changes to CAA?
A: Frequently our partner legal is eager to introduce some additions or changes at least in wording to show they are essential to protect your interests. Our strong preference is to have CAA untouched or – worst case –  appended (additional explanations of terms or clarifications provided).

Q: There are some clauses, which we would like to exclude. Can we do it?
A: For reasons mentioned above, we would like to keep CAA identical to our customer CAA clauses.

Q: Can we reduce payment terms? 
A: We cannot reduce payment terms in CAA – as we have 45 days (sometimes 60) in our CAAs with largest customers.  We are working however to make payments as soon as possible.  During last few years we kept payments on 30 days basis, lately we are reducing payment terms to 7-15 days.  Having said this – we cannot commit contractually to shorter payment terms as stated in our customer agreements.

Q: Should we sign separate NDA?
A: Clause 10 in CAA contains all confidentiality requirements, therefore we do not need to sign separate NDA

Q: Can we have different non-solicitation clauses (stronger, weaker)?
A: We have exactly the same non-solicitation clauses with customers and ALL other partners (since frequently we have several parties participating in the same project. We do not see how we can have different requirements for particular partner.