ICC Model Consulting Services Contract: Expanding into a New Market

What are the main features of this model? 

An international business transaction requires a precise and detailed underlying contract. However, it can be expensive and time-consuming to draft such a contract oneself. The ICC Model Consulting Services Contract – Expanding into a New Market responds to the market’s need for a reliable and equitable template, providing a set of clear and concise standard provisions regarding hiring a local expert to inform a company’s foreign expansion that will save parties time and money in the negotiation process. 

Companies looking to expand their operations to a new, foreign market increasingly engage a domestic entity or person familiar with the new market through cultural and business experience to provide guidance on a range of issues related to the new market,  

such as brand promotion where brand ambassadors are engaged, market research before making franchising contracts abroad, or obtaining information on local incentive regimes prior to entering a new market. 

The ICC consulting services model deals with independent consultants, not with commercial agents, occasional intermediaries or distributors. While the distributor acts in its own name and for its own account as buyer-reseller, both the occasional intermediary and the commercial agent act as a middle person, i.e. they promote the conclusion of contracts between a principal and a third party.  

Different from all these types of relationships, a consultant neither acts as an intermediary or broker nor conducts any commercial sale activity in its own name and on its own behalf. This consultancy model only deals with services related to promoting and presenting a client, without the involvement of any sale of goods. 

For users deciding between this model and the ICC Occasional Intermediary Contract (NCND) , it is important to be clear about the services expected from the consultant / occasional intermediary, keeping in mind: