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The Consulting Agreement After Sale Of Business is a crucial document used when a business is sold and the buyer requires the seller's expertise for a transition period. This agreement, governed by South African law, is typically executed simultaneously with or shortly after the main sale agreement. It outlines the precise nature of consulting services, ensuring the buyer receives necessary knowledge transfer while protecting the seller's interests. The document addresses key aspects such as scope of services, compensation, confidentiality, and non-compete provisions, all within the framework of South African legislation including the Companies Act, Competition Act, and relevant employment laws. This agreement is particularly important in transactions where the seller's expertise is crucial for business continuity or where complex operational knowledge needs to be transferred to the new owners.

1. Parties: Identification of the consultant (typically the seller) and the company/buyer receiving consulting services

2. Background: Context of the agreement, including reference to the prior business sale and reason for consulting arrangement

3. Definitions: Key terms used throughout the agreement, including references to the previous sale agreement

4. Appointment and Scope: Terms of appointment and detailed scope of consulting services to be provided

5. Duration and Term: Period of the consulting arrangement, including start date and termination provisions

6. Consultant's Obligations: Specific duties, responsibilities, and performance standards expected from the consultant

7. Company's Obligations: Company's responsibilities, including provision of information and resources needed for consulting

8. Remuneration: Fee structure, payment terms, expenses, and any performance-based compensation

9. Relationship of Parties: Clarification of independent contractor status and not an employment relationship

10. Confidentiality: Protection of confidential information, including references to existing confidentiality obligations from sale

11. Non-Competition: Restrictions on competitive activities, aligned with the sale agreement's provisions

12. Termination: Grounds for termination, notice periods, and consequences of termination

13. General Provisions: Standard clauses including notices, entire agreement, governing law, etc.