Any agreement with an independent contractor must clearly state the amount and timing of compensation, among other required information. An independent contractor agreement is a legally binding contract between an individual contractor and a company (ie your business).Learn how to determine whether a person providing a service to you is an employee or an independent contractor. The agreement should have an introductory paragraph outlining who is the client and who is the service provider. First, make sure you are an independent contractor and not an employee. You're an independent contractor if you're in business for yourself.