It’s amazing how many freelancers do work without signing contracts. It’s kind of nice, in a way, that freelancers are able to commit to their word and rely on the word of clients to get the job done. Nice, but not practical. If you run a freelance business, you need to think of it as a business and when it comes right down to it, businesses need contracts if they’re going to run right. Sure, it is almost never necessary to use them - because many people do stick by their word - but you should always have them in case that rare case comes up that you do need to go back to it.

The most common reason that freelancers fail to use contracts is because they feel intimidated by the process of drawing them up. But writing a freelance contract is actually really easy. It’s probably not all that much different from documents that you draw up on a regular basis. As long as you include a few important items and you get a signature, you’re good to go to court with that contract if need be.

Here are some things that you need to include when you write a freelance contract:

• Document title showing that this is a freelance contract. Common titles include “work for hire agreement” and “independent contractor agreement”.
• Your name and the client’s name, identifying which is which. This is done in the first paragraph of the freelance contract, usually by saying something like Bob Jones (Freelance Contractor) enters into this agreement with Joan Bobby (Company Owner). The addresses of each party are often included after the names.
• The date of the agreement. This is usually written into the first paragraph (”enter into this agreement on ____ date”) as well as beneath the signatures that you’ll place at the end of the agreement.
• Spot for signatures. This goes at the end, includes your titles and date and should be signed by both (or all) parties.
• Description of services. Describe exactly what you are agreeing to do as a freelance contractor on this job. The more specific that you are able to make this section, the more of a legal leg you have to stand on if you ever need to rely on your freelance contract.
• Statement of ownership and rights. Be clear as to who owns what rights to the work that you are agreeing to provide.
• Description of payment. Be specific in saying what you will be paid (hourly and the expected number of hours or per project broken down by segment of the project). Specify how invoicing will take place. Specify any agreements that you have made to costs of revisions, when the payment will be expected and what late fee you will charge if payment is not received.

There are other items that you may or may not want to include in your freelance contract such as where (what state) legal action will occur should it need to, what attorneys fees will be covered by whom in the event of a lawsuit, what your agreed terms are regarding subcontracting of work and what rights are waived as part of the contract. However, a basic freelance contract needs only to include your names, service and payment terms and signatures. Ultimately, you just want something that you can come back to in case the other party fails to keep their word.

Here are more articles about writing freelance contracts and where to download small business contracts

Here are more articles about Freelancing, Laws, and Contracts for Small Businesses

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