Streamline your tax compliance with our expert-assisted GSTR 9 & 9C services @ ₹14,999/-

Tax efficiency, interest avoidance, and financial control with advance payment @ 4999/-
Freelancer Agreement

12 Contract Clauses Every Freelancer Should Be Using

In this article, we shall highlight the crucial clauses that must be present in your freelance contract. Let us now study 12 Contract Clauses Every Freelancer in detail below.

Introduction

Freelancing has caught the eye of many business owners lately. A few decades ago, nobody could even think of something like this. The gig economy is rising, and so is the number of new freelancers. However, as appealing as it sounds, there are many essential things one needs to be aware of before one gets in to test the waters. 12 Contract Clauses Every Freelancer Should Be Using

While freelancing allows one to work per their terms and conditions, there is uncertainty if a freelance contract is not present to safeguard your rights. Yes, you read that right. The best part about a 9 to 5 job is the assurance of a steady and fixed income. The employer and employee are in a legally binding contract. It means at the end of an intended period; the employer shall pay the employee an agreed amount. 

The same can be done in a freelance situation. The only difference here is you (the freelancer) can create the contract. You have the liberty to chalk out your terms and conditions and work as per them. This freelance contract needs to be signed by your potential client before you both shake hands and start the project. 

A freelance contract can be defined as an agreement that consists of various clauses or provisions. Clauses are simply provisions that address specific portions. Without these clauses, your rights cannot be protected, and you may deliver more than promised. 

Essential Contract Clauses That Should Be In Every Freelance Contract

Here is a list of all the vital contract clauses that should necessarily be present in your freelance contract. These will facilitate the protection of your rights and prevent you from over-delivering. 

  1. Crucial Specifics: This clause demands essential specifics such as the involved parties’ names and how they will be addressed throughout the project’s duration. It may be a designer, company, contractor, client, or anything you choose. The basic information about both parties should include their titles and how to contact them in this clause. 
  2. Payment Structure: This is another crucial part of a freelance contract and should be crystal clear. If you are working for someone, you should get paid right. A freelancer needs to include all the information related to payments in this clause. Whether they require an amount upfront, need payment in stages, or on receipt. The payment method, days, and the work you are delivering correspond to the amount you are demanding; everything needs to be there. 
  3. Deadlines and Timelines: Nobody wants to spend extra time on a project. The freelancer needs to set deadlines and timelines for both parties. As a freelancer, you may state in this clause that the client works around your timeline by giving approval or delivering materials as and when required. 
  4. Work Scope: The scope clause is another necessary clause that protects your rights. You must state facts as they are when it comes to work scope. What parts of the project will be your responsibility, how many hours weekly are you willing to dedicate, and how many revisions are included – all this should be made clear to the client from the beginning. 
  5. Revisions: It is a rare situation when a designer presents something, and it gets approved by the client in one go. In the real world, there are revisions. The client may not be satisfied with the work, stalling the rest of the project. In such cases, it can overload the freelancer with work. Revisions should be a separate clause since you are revising and putting in work. Be clear about how many revisions are allowed and how much you will charge for them. 
  6. Miscellaneous Expenses and Taxes: This clause includes all the expenses made from your end during the project. This clause should include if you wish to pay and get reimbursed later. In addition, if the client fails to meet your payment deadline and you want to charge a late fee, include it here. Everything payment-related that you can think of needs to be included here. You cannot ask for something without it being previously mentioned. 
  7. Early Termination: A project may get ended earlier than it was supposed to. You should specify your expectations in such cases, whether you need a notice period, refund arrangements, or a kill fee. Kill fee can be defined as compensation for the income you planned you were going to get. All payment and work-related information should be included here, considering different situations. 
  8. Legalities and Fees: There are many situations in a project that may lead you to court. A client may refuse to pay or is unsatisfied with the delivered work, or there might be another problem. These uncertain situations must be accounted for. If you are dragged to court, you should include that the proceedings occur in your jurisdiction or that your legal expenses are covered. This may help cover undue costs and save you time. 
  9. Independence: This clause clearly states that you are an independent freelancer/individual. You have the right to work with whomever you want and however long you wish to. Nobody has any rights to you or your work. You are independent of anyone and can work with whomever you want. 
  10. Ownership: This clause includes all ownership rights and related information, whether you want the project to be owned by you or not. If you do want to own it, mention how the client can use your work. It is also the case with the information and files provided to you by the client. Be clear about their ownership and mention that you are not part of the consequences if those files were illegally acquired. 
  11. Promotion and Portfolio: Imagine being a freelancer without proving your talent. Sounds bad, right? If the ownership rights are with the client, you should ask them whether you can use the project in your portfolio and for your promotion. If you are interested in doing so, including a related clause in the contract would be great. This may add brownie points to your portfolio and be a great way of showcasing your talents. 
  12. Renegotiation: Including this clause in your freelance contract may protect you from doing extra work for free. When a project begins, there is more work involved than anticipated. Hence, a renegotiation clause states that the scope will be renegotiated and adjusted according to fees if burdened with more work. 

Conclusion

Every field is different, and so are its specifications. If you are a freelancer, you must study and research your field well and then include clauses in your contract accordingly. 12 Contract Clauses Every Freelancer, Losing money because you missed these essential clauses may make you regret it. If you want to be entirely sure, you can hire professional assistance at Vakilsearch. Lawyers Services here will do their best to protect your work and your rights.

Read more :


Subscribe to our newsletter blogs

Back to top button

Adblocker

Remove Adblocker Extension