A consulting agreement » safeguards intellectual property (IP) by defining who retains ownership of work created during the consulting period. This is especially important for companies hiring consultants for product development, content creation, or proprietary strategies. The agreement ensures that any sensitive information shared remains confidential and that IP rights are clearly assigned. Without a legally binding document, businesses risk losing control over their innovations. A consulting agreement also establishes non-disclosure terms, preventing consultants from sharing proprietary information with competitors.