A good freelance contract is essential to clearly define the rights and responsibilities of both the freelancer and the client. Whether you’re an independent contractor or a client hiring independent professionals, understanding the key clauses of a solid contract is a must.
Luckily, we’ve supported freelancers and their clients for over a decade and know the best practices in drafting a simple but effective freelance contract. Follow our advice to create your own document, or download our free freelance contract template with blanks to fill in yourself.
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Freelance contract template
The more specific and scrupulous you are while drafting and negotiating the agreement, the more chances you have to avoid misunderstandings and disputes in the future. A well-drafted contract sets a solid foundation, ensures transparency, and helps foster a rewarding working relationship.
But writing a contract from scratch can be daunting, especially if you’re not familiar with legal terms and concepts. However, you can find a free freelance contract template available online that you can use as a starting point. You can also start with a freelance contract sample as an inspiration and go from there.
Considering all the tips listed later in this article, we’ve created an example of a contract for a service. You can download, fill out, and, or adjust it to your needs every time you enter into an agreement with a new client or freelancer, depending on your position.
Remember it’s a template so it’s universal to some extent, but it may need adjustments with every job you undertake. Contracts should reflect the unique needs of each project. A generic contract might not address specific aspects of your industry.
Take the time to tailor your contract to the project at hand. For example, a sample freelance contract for design jobs might include clauses about revisions and file formats. A freelance agreement template for writing projects should include details regarding content ownership and plagiarism. By personalizing the contract, you ensure that it protects your interests.
What is a freelancer contract?
Let’s start with the basics. What is a freelance contact? It’s a legally binding agreement between an independent worker and their client that outlines the terms and conditions of the work arrangement. Contracts for freelancers should have an electronic or written form to ensure that you’re on the same page. If you choose the electronic contract, keep in mind that there are country-specific rules regarding electronic signatures.
Regardless of the form, the contract should establish fair, equal, and clear rights and obligations regarding:
- scope of work,
- payment terms,
- confidentiality,
- intellectual property and ownership,
- termination,
- liability and indemnification,
- dispute resolution and governing law,
- and other matters.
Drafting a contract is not the only possible solution for managing freelance collaborations. Instead of handling paperwork and navigating international laws on their own, both freelancers and clients can rely on platforms like Useme to simplify formalities. Explore how it works to streamline your agreements, especially when working across borders.
How to write a freelancer contract
You have three options, suitable both for a freelance worker and an employer hiring freelancers:
- Download, customize, and fill out our freelance contract template.
- Use an intermediary platform like Useme instead of a written contract.
- Draft your own written agreement, using the clauses we describe below.
If you decide on the third option, you may need to include specific clauses depending on the type of freelance work. However, there are a few essential ones that every freelancer should include. You’re in luck, we’ve got them right here. Welcome to contracts 101.
Key components of a freelancer agreement
Contract parties
At the beginning of your freelance contract, you should state at least both contract sides’ full names and current addresses. For businesses, include the company name, address, and legal form (e.g., LLC). Clearly identifying all parties ensures the contract is valid and makes it easier to resolve disputes.
Scope of work and duration
The project scope should clearly define what should be done, including the deliverables and key milestones. This section is crucial because it defines exactly what an independent contractor is hired to do.
Be as detailed and specific as possible to avoid scope creep (when extra work is requested beyond the original agreement.). For instance, if you’re designing a website, list the number of pages, the design revisions allowed, and any additional deliverables. Clear and precise terms benefit both freelancers and clients by ensuring they agree to the other side’s expectations from the start.
In this section, you should also include the timeline and deadlines for the project. State how long the contract will last – it can be time-based (like 1 year), project-based (until the work in the ‘Scope of work’ is done), or a mix of both. Include the start date, which may differ from the signing date but cannot be earlier than when all parties sign.
Payment terms
This section of the freelance contract specifies the payment terms, including any late fees. Clearly state the agreed-upon rates, payment schedule, and payment method (e.g., bank transfer, PayPal, etc.). Mention any upfront deposits required, due dates, and fees for late payments. For larger projects, consider including milestones and partial payments as each milestone is completed.
When setting the price, clearly state whether it’s a gross amount (before taxes) or net (after taxes). A freelance contract should also include a clause guaranteeing the freelancer’s right to payment if the contract is terminated early before they finish work.
Confidentiality
A confidentiality clause is meant to protect independent contractors and their clients. The clause should clearly define what is “confidential information.” The definition should mention the type and formats of information, as well as exclusions from confidential information.
It should also list the types of confidential or sensitive information that may be included in the scope of the project’s work. When listing these types of information, it is recommended that we use the phrase “includes, but is not limited to.”
Furthermore, it should state the consequences of breaching the confidentiality clause. A good practice is to customize the contract based on your industry’s particular needs. This will ensure that all vital aspects are covered and nothing is left to chance.
Intellectual property and ownership
It defines the ownership of the work, including the intellectual property rights that cover creative works, branding, design, etc.
Clearly state whether the freelance worker or the client will own the work after completion. Will the freelancer retain ownership of the copyright, or will the copyright be transferred to the client upon the final payment? In most jurisdictions, the transfer of copyright doesn’t happen automatically and must be explicitly covered in the agreement (although there are some exceptions, such as a “work made for hire” in the US when the copyright is transferred by default).
In some jurisdictions (such as the EU), a freelancer can only transfer economic copyright to the work, while moral rights remain their property. Last but not least, in some jurisdictions, a contract including a copyright transfer clause must be in a written form to be valid.
It’s particularly important for creatives like photographers, writers, and designers to protect their original work. The freelance contract should state if the client can use the work commercially and if a freelancer can include it in their portfolio. But more about the portfolio clause later.
Termination
The termination clause should outline all the conditions under which both the freelancer and the client can end the cooperation. It should specify the notice period and any fees or compensation for early termination.
Liability clause
Here, you enlist each party’s responsibilities and liabilities in case of any disputes, damages, or legal claims. The liability clause usually states what the freelancer can and cannot be held responsible for and therefore addresses scenarios such as errors, delays, or negligence. It’s common that the clause specifies the maximum amount the freelancer could be liable for, which is often equal to the contract value itself.
It’s also advisable to include the statement that the freelancer should not be liable for errors or delays in case of catastrophic events or when the client did not provide accurate and complete information and materials.
Indemnification clause
The indemnification clause specifies the parties’ obligations in case of losses or damages that usually happened because of something the other side did or failed to do. It often means one side has to cover, protect, and take responsibility for claims, damages, or losses, typically involving third parties.
Governing law
This clause specifies the governing law and jurisdiction for resolving disputes. In other words, it determines which country or state’s laws will be used to interpret and enforce the agreement. It’s especially important if you collaborate with a person from another country.
Dispute resolution
Even with a well-written contract, disputes can sometimes arise. To avoid lengthy legal battles, it’s best to outline a process for handling disagreements.
Add a clause that specifies how disputes will be managed. We recommend seeking amicable forms of dispute resolution (such as negotiation or mediation) before escalating to legal actions such as arbitration or court litigation. If you decide to agree to arbitration, we also advise deciding on the arbitration venue and rules beforehand.
Optional components of a freelance contract
Revisions
Include the number of included revisions (if any), the process for requesting and accepting changes, and any additional fees or compensation connected with extra revisions or changes of scope. For freelancers, this clause is a must if they don’t specify all the edits in the ‘Scope of work’ section.
Non-compete clause
A non-compete clause prevents freelancers from working with competitors or on similar projects. Make sure to specify the scope and duration of the non-compete agreement.
Portfolio clause
The portfolio clause in a freelance contract outlines the freelancer’s right to showcase the work they have completed for the client as part of their professional portfolio.
A freelancer can ask for the client’s consent at a late stage (in a separate agreement) but you can also include this clause in the freelance agreement so that you avoid future misunderstandings or disputes. It should clearly outline all the specific types of uses of your work and describe them as much as you can.
Subcontracting clause
Sometimes, if a self-employed worker works with multiple clients and their business is growing, they may want to delegate some work to subcontractors or other freelancers. This clause may be useful and advisable because the client can expect that the work will be carried out directly by the freelancer who signs the contract.
It should contain all the necessary information about the person filling in and their responsibilities, but in most cases, it’s enough to write that the work may be delegated.
When outsourcing to subcontractors, it’s best to enter into a separate agreement with them, because the freelancer usually takes full responsibility for their work before the client.
Severability
A severability clause ensures that if one provision of the contract is found to be invalid or unenforceable, the rest of the agreement will still be valid and enforceable.
Force majeure
A force majeure clause protects both parties from liability if unforeseen and uncontrollable events prevent the fulfillment of contractual obligations.
Contact details
Include all the needed contact information, such as email addresses you’ll use to discuss project details and contract terms and the days/hours of preferable contact in project-related matters. Be as specific as you can, especially with your designated days off.
Date and signature
The key elements for a contract to be binding are signatures (which can be electronic signatures) and the start date. The start date can be stated directly in the contract, and if it’s not specified, it’s usually the date the last signature was added to the document.
When you don’t need to sign a freelance contract
No matter if you use a freelance contract template or draft a new one from scratch for each assignment, it can be a time-consuming and sometimes stressful process. If that resonates with you, consider alternative measures to protect yourself and simplify your workflow.
Platforms like Useme offer a practical solution by taking over the administrative side of freelancing and hiring freelancers. With Useme, you don’t need to draft individual contracts for every project – these are automatically integrated into the platform’s system when you engage with a client/independent contractor. Freelance contracts, including copyright transfer if needed, “happen” entirely online, without any paper documents – even for cross-border transactions.
This not only saves time but also ensures that the legal and financial aspects of your freelance collaboration are handled professionally and securely. We ensure that all formal requirements are met every time you settle a deal through our platform.
Try it out and see for yourself!
