With the ever-changing landscape of work culture, a new phenomenon called freelancing has grasped the 21st century. An increasing number of people with special skills tend to render their service directly to the client. However, these freelancers with a unique specialty are often cheated in terms of payment and other things. This is when a freelance contract comes to their rescue.
What Is A Freelance Contract?
Slightly differed from a traditional employment contract, a freelancer contract refers to a legally binding document that binds the freelancer and the client based on the terms of the agreement. The contract consists of information about the pricing for the work that is to be done and contains exhaustive details on the work scope as well as a reasonable project timeline.
This contract makes the client liable for the timely payments along with other terms of services. Given the legality of the document, any violation therein will attract penalties from the authorities. The laws of the land where this contract is drawn will govern the terms of the contract.
Get a Copy of Our Freelance Contract Template Now
A freelance contract puts you and the other party under legal obligations. Now is the time to download and use our freelance template to protect yourselves from being defrauded.
Download our FREE freelance contract template from below!
When Do I Need A Freelance Contract?
A freelance contract is generally needed when you are working with one-time clients/freelancers or when you work with local clients/freelancers.
If you are working with an international client/freelancer, your email thread can serve as legal agreements too. In case of disputes, you may simply refer the other party to the email reply for the agreed terms and conditions.
Further, this is especially convenient if you are working with the same party over the months or years. All you need to do is send an email highlighting your conditions.
But if you are working with a party for the first time, it is in the best interest of both the freelancer and the client to have a formal written contract in place to avoid unforeseen events.
Part 3: What To Include In A Freelance Contract?
Freelance work without a freelance contract leaves a lot of opportunities for misrepresentation. This is the reason a freelance contract needs to cover as much detail as possible to avoid the freelancers from getting fleeced over.
So, how long will the project take? Or how soon do you want to get it done? It is important to mention the turnaround time on the contract so that no deadlines are missed.
What does the project include? Is it only about web designing, or providing content a part of the project as well? It is important to explicitly talk about other similar details in the contract.
What will be the course of action if additional work crops up? Will the freelancer charge at their existing rates, or the client is expected to pay them more? Your freelance contract must highlight the related details clearly.
Payment and pricing is a crucial point of a freelance contract. Most freelance contracts are either hourly or fixed-price projects. Both parties should agree on the payment part before commencing the work, and this should be reflected well on the contract.
What if either party wants to terminate the project? Can they do that? Will they need to provide compensation for premature termination? Talk about this aspect in detail as well.
Who retains the rights of the work once it is delivered and the payment is made. Can a freelancer showcase the work on their portfolio? An ideal contract talks about ownership rights in-depth to avoid any confusion later on.
Since most freelancers work remotely, taking care of confidential information is important. Make sure that your contract mentions the guidelines related to it.
Types Of Freelance Contracts
Work for Hire
These contracts make the client as the owner of the work delivered once the payment is made.
The Buyout
In these contracts, freelancers sell the original copyright of the work to the client. As a result, the freelancer loses all control over the work delivered. He or she cannot make revenue from the project delivered or showcase it in his or her portfolio.
Rights-Managed Contracts
These contracts include multiple-use and limited-use options. A limited-use contract imposes restrictions on the rights that a freelancer transfers to the client. The freelancer could also provide a time-limit, or allow one-time print reproduction rights. In either case, a freelancer is the sole owner of the original copyright.
Multiple-use contracts provide a broader scope. They allow the client to use the work delivered time and again.
There are unlimited rights freelance contracts as well which establish the client as the sole owner of all the copyrights on the work.
Consequences Of Not Using A Freelance Contract
● Not having a freelance contract could create confusion between both the involved parties with no documents to refer to when disagreements arise.
● Without a proper contract, there is no clarity on the payment method or penalty terms for late payments.
● The absence of a freelance contract will promote ambiguity on the deadlines, and both parties might even lose trust over each other.
Get a Copy of Our Freelance Contract Template Now
A freelance contract puts you and the other party under legal obligations. Now is the time to download and use our freelance template to protect yourselves from being defrauded.
Download our FREE freelance contract template from below!
Conclusion
A freelance agreement must be meticulous and contain all the related details, something that is well covered by CocoSign. With loads of contract templates to choose from and each of them filled with the necessary details, CocoSign is a one-stop library for your legal needs!
DOCUMENT PREVIEW
This Freelance Contract (this "Agreement") is made as of this ___ day of ___________, 20___, (the “Effective Date”) by and between __________ located at __________, __________, __________ __________ (“Client”) and __________ located at __________, __________, __________ __________ (“Independent Contractor”). Client and Independent Contractor may each be referred to in this Agreement as a “Party” and collectively as the “Parties.”
1. Services. Independent Contractor shall provide the following services to Client (the “Services”): _________________________________________________________________________________________________________________________________________________________________. In addition, Independent Contractor shall perform such other duties and tasks, or changes to the Services, as may be agreed upon by the Parties.
2. Compensation. Inconsideration for Independent Contractor’s performance of the Services, Client shall pay Independent Contractor: (Check one)
☐ A Fixed Wage. Client shall pay Independent Contractor $_______ ☐ per hour ☐ per week ☐ per month ☐ per year ☐ other: __________. Independent Contractor will be paid: (Check one)
☐ Weekly. Independent Contractor will be paid on __________ [Day of the week] of every week.
☐ Monthly. Independent Contractor will be paid on the __________ [Day of the month] of every month.
☐ After Independent Contractor sends Client an invoice. Independent Contractor will be paid within __________ days after receiving Independent Contractor’s invoice. Independent Contractor will submit invoices for payment ☐ at the end of every week ☐ on the __________ [Day of the month] of every month ☐ within __________ days after completion of the services ☐ other: __________.
☐ Other: __________.
☐ A Set Fee. Client shall pay Independent Contractor $_______: (Check one)
☐ After Independent Contractor completes the Services.
☐ After Independent Contractor sends Client an invoice. Client shall pay Independent Contractor within __________ days after receiving Independent Contractor’s invoice. Independent Contractor will submit invoices for payment ☐ at the end of every week ☐ on the __________ [Day of the month] of every month ☐ within __________ days after completion of the services ☐ other: __________.
☐ Other: __________.
☐ After Completing Certain Milestones. Client shall pay Independent Contractor according to the following schedule: $_______ for __________ [Milestone]. $_______ for __________ [Milestone]. Independent Contractor will be paid: (Check one)
☐ After the completion of each milestone.
☐ After Independent Contractor sends Client an invoice. Client shall pay Independent Contractor within __________ days after receiving Independent Contractor’s invoice. Independent Contractor will submit invoices for payment ☐ at the end of every week ☐ on the __________ [Day of the month] of every month ☐ within __________ days after completion of the services ☐ other: __________.
☐ Other: __________.
☐ Other. __________
3. Expenses. (Check one)
☐ Client shall reimburse Independent Contractor for expenses. Except as otherwise specified in this Agreement, Client shall reimburse Independent Contractor for all pre-approved, reasonable and necessary costs and expenses incurred in connection with the performance of the Services.
☐ Client shall NOT reimburse Independent Contractor for expenses. All costs and expenses incurred by Independent Contractor in connection with the performance of the Services shall be the sole responsibility of and paid by Independent Contractor.
4. Term and Termination. Independent Contractor’s engagement with Client under this Agreement shall commence on ___________, 20___. The Parties agree and acknowledge that this Agreement and Independent Contractor’s engagement with Client under this Agreement shall terminate: (Check one)
☐ Upon the completion by Independent Contractor of the Services.
☐ After ___________ ☐ months ☐ days ☐ other: ___________.
☐ On ___________, 20___.
☐ At will. Independent Contractor acknowledges and agrees that the engagement with Client is at will, subject to being terminated at the discretion of Client at any time,
At the time of termination, Independent Contractor agrees to return all Client property used in performance of the Services, including but not limited to computers, cell phones, keys, reports and other equipment and documents. Independent Contractor shall reimburse Client for any Client property lost or damaged in an amount equal to the market price of such property.
5. Independent Contractor. The Parties agree and acknowledge that Independent Contractor is an independent contractor and is not, for any purpose, an employee of Client. Independent Contractor does not have any authority to enter into agreements or contracts on behalf of Client, and shall not represent that it possesses any such authority. Independent Contractor shall not be entitled to any of Client’s benefits, including, but not limited to, coverage under medical, dental, retirement or other plans. Client shall not be obligated to pay worker's compensation insurance, unemployment compensation, social
security tax, withholding tax or other taxes or withholdings for or on behalf of the Independent Contractor in connection with the performance of the Services under this Agreement. Nothing contained in this Agreement shall be deemed or construed by the Parties to create the relationship of a partnership, a joint venture or any other fiduciary relationship.
6. Confidentiality. (Check one)
☐ Independent Contractor will NOT be exposed to confidential information.
☐ Independent Contractor will be exposed to confidential information.
a. Confidential and Proprietary Information. In the course of performing the Services, Independent Contractor will be exposed to confidential and proprietary information of Client. “Confidential Information” shall mean any data or information that is competitively sensitive material and not generally known to the public, including, but not limited to, information relating to development and plans, marketing strategies, finance, operations, systems, proprietary concepts, documentation, reports, data, specifications, computer software, source code, object code, flow charts, data, databases, inventions, know-how, trade secrets, customer lists, customer relationships, customer profiles, supplier lists, supplier relationships, supplier profiles, pricing, sales estimates, business plans and internal performance results relating to the past, present or future business activities, technical information, designs, processes, procedures, formulas or improvements, which Client considers confidential and proprietary. Independent Contractor acknowledges and agrees that the Confidential Information is valuable property of Client, developed over a long period of time at substantial expense and that it is worthy of protection.
b. Confidentiality Obligations. Except as otherwise expressly permitted in this Agreement, Independent Contractor shall not disclose or use in any manner, directly or indirectly, any Confidential Information either during the term of this Agreement or at any time thereafter, except as required to perform the Services or with Client’s prior written consent.
c. Rights in Confidential Information. All Confidential Information disclosed to Independent Contractor by Client (i) is and shall remain the sole and exclusive property of Client, and (ii) is disclosed or permitted to be acquired by Independent Contractor solely in reliance on Independent Contractor’s agreement to maintain the Confidential Information in confidence and not to use or disclose the Confidential Information to any other person. Except as expressly provided herein, this Agreement does not confer any right, license, ownership or other interest in or title to the Confidential Information to Independent Contractor.
d. Irreparable Harm. Independent Contractor acknowledges that use or disclosure of any Confidential Information in a manner inconsistent with this Agreement will give rise to irreparable injury for which damages would not be an adequate remedy. Accordingly, in addition to any other legal remedies which may be available at law or in equity, Client shall be entitled to equitable or injunctive relief against the unauthorized use or disclosure of Confidential Information. Client shall be entitled to pursue any other legally permissible remedy available as a result of such breach, including but not limited to, damages, both direct and consequential. In any action brought by Client under this Section, Client shall be entitled to recover its attorney’s fees and costs from Independent Contractor.
7. Ownership of Work Product. The Parties agree that all work product, information or other materials created and developed by Independent Contractor in connection with the performance of the Services under this Agreement and any resulting intellectual property rights (collectively, the “Work Product”) are the sole and exclusive property of: (Check one)
☐ Client. The Parties acknowledge that the Work Product shall, to the extent permitted by law, be considered a “work made for hire” within the definition of Section 101 of the Copyright Act of 1976, as amended, (the “Copyright Act”) and that Client is deemed to be the author and is the owner of all copyright and all other rights therein. If the work product is not deemed to be a “work made for hire” under the Copyright Act, then Independent Contractor hereby assigns to Client all of Independent Contractor’s rights, title and interest in and to the Work Product, including but not limited to all copyrights, publishing rights and rights to use, reproduce and otherwise exploit the Work Product in any and all formats, media, or all channels, whether now known or hereafter created.
☐ Independent Contractor. Independent Contractor grants to Client a limited, non-exclusive license to use the Work Product. The Work Product is to be used only by Client, and Client may not assign, transfer, lease or sublicense any Work Product to any person or entity without Independent Contractor’s prior written consent.
8. Insurance. (Check one)
☐ For the term of this Agreement, Independent Contractor shall obtain and maintain a policy of insurance, with appropriate and adequate coverage and limits, to cover any claims for bodily injury, property damage or other losses which might arise out of any negligent act or omission committed by Independent Contractor or Independent Contractor’s employees or agents, if any, in connection with the performance of the Services under this Agreement.
☐ Independent Contractor is NOT required to maintain a policy of insurance.
9. Non-Compete. (INITIAL if you want to include this clause. CROSS OUT if you do not.)
______ Independent Contractor agrees and covenants that during the term of this Agreement, and for a period of ___________ months following the termination of this Agreement, Independent Contractor will not, directly or indirectly, perform or engage in the same or similar activities as were performed for Client for any business that is directly or indirectly in completion with Client.
10. Non-Solicit. (INITIAL if you want to include this clause. CROSS OUT if you do not.)
______ Independent Contractor agrees and covenants that for a period of ___________ months following the termination of this Agreement, Independent Contractor will not, directly or indirectly, solicit any officer, director or employee, or any customer, client, supplier or vendor of Client for the purpose of inducing such party to terminate its relationship with Client in favor of Independent Contractor or another business directly or indirectly in competition with Client.
11. Mutual Representations and Warranties. Both Client and Independent Contractor represent and warrant that each Party has full power, authority and right to execute and deliver this Agreement, has full power and authority to perform its obligations under this Agreement, and has taken all necessary action to authorize the execution and delivery of this Agreement. No other consents are necessary to enter into or perform this Agreement.
12. Independent Contractor Representation and Warranties. Independent Contractor represents and warrants that it has all the necessary licenses, permits and registrations, if any, required to perform the Services under this Agreement in accordance with applicable federal, state and local laws, rules and regulations and that it will perform the Services according to the Client’s guidelines and specifications and with the standard of care prevailing in the industry.
13. Indemnification. (INITIAL if you want to include this clause. CROSS OUT if you do not.)
______ The Independent Contractor shall indemnify and hold harmless Client from any damages, claims, liabilities, loss and expenses, including reasonable attorney’s fees, arising out of any act or omission of Independent Contractor in performing the Services or the breach of any provision of this Agreement by Independent Contractor.
14. Governing Law. The terms of this Agreement and the rights of the Parties hereto shall be governed exclusively by the laws of the State of __________, without regarding its conflicts of law provisions.
15. Disputes. Any dispute arising from this Agreement shall be resolved through: (Check one)
☐ Court litigation. The dispute shall be resolved in the courts of the State of __________.
Attorneys’ Fees
☐ If either Party brings legal action to enforce its rights under this Agreement, the prevailing party will be entitled to recover from the other Party its expenses (including reasonable attorneys' fees and costs) incurred in connection with the action and any appeal.
☐ Arbitration. The dispute shall be resolved through binding arbitration conducted in accordance with the rules of the American Arbitration Association.
☐ Mediation. The dispute shall be resolved through mediation.
☐ Mediation then arbitration. The dispute shall be resolved through mediation. If the dispute cannot be resolved through mediation, then the dispute will be resolved through binding arbitration conducted in accordance with the rules of the American Arbitration Association.
16. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns.
17. Assignment. The interests of Independent Contractor are personal to Independent Contractor and cannot be assigned, transferred or sold without the prior written consent of Client.
