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Freelance Contract - An Overview

A freelance contract or a freelance agreement defines the terms and conditions between the freelancer and the customer. It specifies the job requirements, the timeline of the agreement, the mode and method of payment, as well as other details relevant to the execution of work by the freelancer. Over the years, with the evolution in technology, more and more work is assigned and executed through freelancers. Hence, freelance agreements have become popular, specifically in the IT sector.

Benefits of a Freelancer Agreement

Minimises Liabilities

A well-defined consultancy contract will minimize the risk of future lawsuits, as the rights and responsibilities of all involved parties are clearly defined in the consultancy contract.

Assures Confidentiality

If the nature of work requires confidentiality, a consultancy contract can be drafted accordingly.

Sections to be Included in a Freelancer Contract

• Contact details of freelancer and client
• Scope of project
• Deliverables
• Pricing and rates
• Payment schedule and options
• Deadlines and timeline
• Ownership/copyrights on intellectual properties
• Legal terms
• Terms of cancellation
• Signatures.

How to Prepare a Freelancer Agreement

While preparing a freelancer contract, one should adhere to the below-mentioned conditions:

• Services/Non-services: Make a list of the services you provide and don't provide
• Payment Terms & Rates: Specify terms of payment and rates, whether as fixed or variable based on the project
• Additional Work: This clause helps in including additional services (if required) and their payment rates
• Timeline: While this helps to set the total timeline of the contract, it also helps to set conditions, if the freelancer cannot meet the timeline set for the project
• Termination Clause: Unforeseen circumstances may lead to cancellation of the project, or desire to work together. In such cases, termination clauses will be helpful in deciding how to terminate the contract or the project
• Advance Payments: The freelancer can request for a deposit or an advance, before starting work in good faith, and then the remaining as per the stipulated conditions of payment
• Terms for Late Payments: In case of delays, the terms of late payment can help both freelancers and employers to establish payment rates and interest (if required).

Documents Required to Prepare a Freelancer Agreement

• Documents that support the identities (named) of the parties involved in the agreement
• Documents that support the address of the parties involved in the agreement
• Documents that support the names of the organisations involved.