Management Contract
A Management Contract is a document used to outline the terms of an agreement to have a business managed by a third party.
4.3 (6 reviews)
Last updated December 19, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
This document is relevant where a Company wishes to hire an external specialist, either an individual or a Company, to manage a business it owns. Often, companies hire external managers when they lack the experience or capacity to run the business on their own, or if they want to take advantage of the Manager’s expertise in a particular area of business.
The Legal Risk Score of a Management Contract Template
Our legal team have marked this document as low risk considering:
- The agreement allows the Manager to engage in other managerial roles concurrently, which might lead to potential conflicts of interest or dilution of focus on the Company’s business needs.
- The Manager has extensive powers to manage and make decisions for the business, which could lead to actions that may not always align with the Company's long-term strategic goals if not closely monitored.
- The document lacks specificity in areas such as the exact nature of the expertise provided by the Manager, which might lead to misaligned expectations between the parties regarding the scope of services to be delivered.
Management Contract Checklist
Complete your free Management Contract with our checklist
Verify Manager's Credentials and Experience:
Ensure that the Manager has the appropriate expertise and a proven track record in the specific area of business management required by the Company.
Review and Confirm Financial Terms:
Double-check the fee structure, payment schedules, and any related financial obligations outlined in the agreement to ensure they align with the Company's budget and financial planning.
Set Clear Performance Indicators:
Establish and agree upon specific, measurable performance indicators with the Manager to ensure that the business objectives and expectations are clearly understood and achievable.
Regular Monitoring and Communication:
Schedule regular meetings and reviews with the Manager to discuss business performance, challenges, and strategy alignment to ensure ongoing effectiveness and adaptability of the management approach.
Use this Management Contract if:
- You are a company looking to hire an external manager for a business you own
- You wish to clarify the manager’s responsibilities, powers, and term of engagement
What does this document cover:
- The powers and obligations of the Manager
- The term of engagement, and payment for the Agreement
- Early Termination, Dispute Resolution, and Indemnity Terms
For more information:
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