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An Advisory Agreement sets out the terms between a professional advisor and their client in Austria, spelling out exactly what advice or consulting services will be provided. These contracts are common in financial services, management consulting, and technical advisory roles where specialized expertise is needed.

Under Austrian law, these agreements must clearly define the scope of services, compensation terms, and confidentiality obligations. They protect both parties by establishing professional boundaries, documenting responsibilities, and meeting regulatory requirements - especially important for regulated sectors like banking and investment advisory where specific Austrian Financial Market Authority rules apply.

Advisory Agreements become essential when engaging professional consultants or experts for specialized guidance in Austria. Use them when hiring financial advisors, management consultants, or technical specialists - especially for projects involving significant financial decisions or strategic planning.

These agreements are particularly important when dealing with regulated sectors like banking or investment services, where Austrian Financial Market Authority oversight applies. Companies need them before starting any consulting relationship that involves sensitive information, complex deliverables, or ongoing professional services. They're crucial for protecting intellectual property and establishing clear expectations about service scope, timelines, and compensation.

• Startup Advisor Agreement: Tailored for early-stage companies engaging advisors who provide strategic guidance, often in exchange for equity compensation. These typically include milestone-based vesting schedules, specific performance metrics, and confidentiality provisions that protect intellectual property. Common variations include equity-only compensation, hybrid cash-equity models, and fixed-term versus ongoing advisory relationships.

• Business Advisors: Professional consultants, industry experts, and strategic advisors who provide specialized guidance and expertise to companies in Austria, often operating as independent contractors or through consulting firms.
• Client Companies: Organizations seeking expert advice, including startups, established businesses, and corporations that need specialized knowledge in areas like finance, technology, or management.
• Legal Counsel: Internal or external lawyers who draft and review Advisory Agreements to ensure compliance with Austrian business law and protect both parties' interests.
• Company Directors: Board members and executives who approve and oversee advisory relationships, particularly when they involve significant financial commitments or strategic decisions.

• Scope Definition: List all advisory services, deliverables, and expected outcomes in detail, including project timelines and milestones.
• Compensation Structure: Document the agreed payment terms, including fees, expenses, equity components (if any), and payment schedules.
• Legal Requirements: Gather business registration details, tax numbers, and regulatory compliance information for both parties under Austrian law.
• Confidentiality Needs: Identify sensitive information that needs protection and specific non-disclosure terms.
• Term and Termination: Determine the agreement duration, renewal options, and conditions for early termination.

• Party Details: Full legal names, business addresses, and registration numbers of both advisor and client company.
• Service Description: Clear outline of advisory services, deliverables, and performance metrics under Austrian commercial law.
• Compensation Terms: Detailed fee structure, payment schedule, and expense reimbursement policies.
• Confidentiality Provisions: GDPR-compliant data protection measures and trade secret safeguards.
• Duration & Termination: Agreement period, renewal options, and termination conditions.
• Liability & Insurance: Professional liability limits and required insurance coverage under Austrian regulations.

An Advisory Agreement differs significantly from a Agency Agreement in several key aspects under Austrian law. While both involve professional services, their scope, obligations, and legal implications vary considerably.

• Legal Authority: Agency Agreements grant the agent power to act on behalf of and bind the principal legally, while Advisory Agreements only authorize providing guidance without decision-making authority.
• Liability Scope: Advisors typically face limited liability for recommendations, while agents bear greater responsibility for actions taken on behalf of the principal.
• Compensation Structure: Agency Agreements often include commission-based payments tied to specific transactions, whereas Advisory Agreements typically feature fixed fees or retainers for ongoing expertise.
• Regulatory Requirements: Agency relationships in Austria often require specific business licenses and registrations, while advisory roles may have fewer formal requirements outside regulated sectors.