Protect Yourself With These Contract Samples

Contracts refer to the legal agreements that bind the two parties. They are also considered as the best protection that any freelancer could ever have.

A contract includes all the details of your association with your client as well as the expectation from both parties. This can guarantee that freelancers are getting paid for their work in full and on a timely basis. Additionally, contracts can prevent the possibility of either party to back out of their agreement or maybe give them penalties if they do.

Contractual agreements can be complicated, and most longtime freelancers are using contract templates on most of their projects.

Here we are going to give some ideas on what are the important details and clauses that you should incorporate in your contract, as well as some template clause wording that can be very useful to you.

Contract Sample No. 1 – The Work And The Timeframe

Basically, your contract should describe exactly what is the expectation from you and most importantly the timeframe. In this way, you can assure that the client does not turn around wanting more work from you and refusing to pay additional money because your contract includes dubious wording.

As much as possible, try to be more specific. When you say, “run the social media accounts of the company for three months” then there could be a lot of interpretations. When something like this occurs, it is important that you have to put the specific days and hours on the paper. Or you could be more specific on the number of times that you go back and forth on this project.

For instance, copywriters may include a condition that they are willing to make edits, however, it should not exceed three rounds.

Example:

• The Client hires the services of the Consultant based on the details provided in the Schedule in accordance with this Agreement, which is indicated as “Services” in this Agreement.
• The date when the Agreement will start is written at the beginning of this Agreement and will continue until the date specified on the Schedule except if it ended earlier than expected.

Contract Sample No. 2 – The Requirements That Are Needed For The Project

This can guarantee that your client is providing you with all the resources needed in successfully accomplishing the job. Perhaps this will comprise the use of any specialist equipment or the use of the facilities of the company. By placing this in your contract, the client can’t blame you in case they fail to keep up with their side of the deal. Additionally, this can prevent the client from pushing any additional costs on you which they should be liable for.

Contract Sample No. 3 – Are You A Freelancer Or Employee?

It is important that you have to clarify your relationship with your client, most especially since IR35 investigations have been prowling around. You have to ensure that you are not assigned as an employee of your client but rather as an independent entity.

Example:

• Between the Client and the Consultant, the Consultant can be considered as an “independent contractor.” This means that the Consultant should not be regarded as an employee, agent, worker, or partner of the Client. Moreover, the Consultant should not give the notion that they are.
• Since this is not considered as an employment contract, then the Consultant will be entirely liable for all the tax payments which include any National Insurance contributions which may arise from carrying out the Services. In case the Client has to make a payment on such tax, then the Consultant will be responsible for paying back the Client in full on any amount that the Client has paid. Also, the Consultant must also pay any fines or penalties imposed on the Client due to the fact that the Consultant failed to pay the tax.

Contract Sample No. 4 – How Much Is The Payment?

Your payment will likely depend on the nature of the job that you are currently working on. Perhaps the payment could be hourly, daily, or perhaps for the entire project. As much as possible, try to determine the most suitable option for you then go with it. You also need to consider that any interference coming from the Client could result in an increase in the cost.

Example:

• The Client is required to pay the Consultant with the amount set in the Schedule along with the VAT that is applicable, in case the Consultant sent an invoice base on the setup in the Schedule including all the details such as the hours and days worked provided that it is covered by the invoice.

Contract Sample No. 5 – How And When Are You Going To Be Paid?

Late payments can be a torment to any freelancer. Hence, it is important that the payment terms should be clearly specified on your contract. Commonly, the payment will be done upon completing and submitting the invoice. Although sometimes the client is given an allowance of 30 days before making any payment.

In case you have a big project then it could take several months before you could get paid. Hence, it would be worthwhile to ask for an upfront fee. For instance, you could ask for 50% of the overall cost upon accepting the job. Another option would be spreading the entire amount over a certain period of time, for instance, 20% of the total amount should be paid every month if the project will last for five months.

Either way, you should not end up broke just because you did not specify your payment schedule and terms. Likewise, always ensure that you are including all the details of late payment penalties. Although when this happens, you can assure that you are protected by the law. However, it is still worth to set up the terms clearly to encourage prompt payment from your client.

Example:

• Each invoice should be paid within thirty days upon receiving it;
• Be authorised to make deductions from these fees any amount that the Consultant may owe to the Client at any time.

Contract Sample No. 6 – Intellectual Property Ownership

This is one of the essential things to include to prevent your Client from running away with your work. On your agreement, you must include a statement which says that you own the work you’ve created until such time that you have received the payment. In other words, you are allowed to sue your Client in the event that they will use your work without making any payment yet.

Example:

• The Consultant designates to the Client, without making any payment, all rights referred to as “intellectual property rights” including rights in designs or copyrights, which will emerge in connection to any works done by the Consultant during the course of accomplishing the Services known as “Works” and any innovations, ideas, or inventions, commonly referred to as the “Inventions,” which they have generated throughout the period of carrying out the Services. This is applicable regardless of the form of Works or Inventions are undertaken. The Consultant consents that in the event that the law prevents them from transferring their Works to the Client, they should hold them on behalf of the Client, based on the law of trust.

Contract Sample No. 7 – Rights For Usage And Resale

Most likely, it is anticipated that any works that you have done will be owned by your Client. This is not surprising, however, there are cases wherein you may choose to set up a special licensing.

It is important to remember that if you wish to incorporate complicated and specific clauses, you should obtain some legal advice. You might think that you already have adequate protection, however, you should not feel too confident since there are chances that your client’s lawyer might break your contract apart.

This could cost you a bit, however, you also need to consider that this can be used as a blanket contract for all your upcoming jobs and the protection that it provides is truly worth the expense.

Example:

That they have not permitted and will not permit anybody else to use any of the Works or Inventions as well as the intellectual property rights in them. Also, no one else should be using them as far as they know;

That any Works or Inventions should not violate anyone’s rights and in case there is some violation, then the Consultant is liable in paying back the Client the amount that was lost due to a successful claim made against the Client.