A legally binding contract or collaboration agreement between me as a freelancer and a customer helps me protect myself and my business should anything go awry. It also creates clarity and sets realistic project expectations for freelancer and customer alike.
I turned to Intolaw for tips on what definitely shouldn't be missing from a contract or a collaboration agreement between a freelancer and the customer.
What should definitely be included:
1. Product information
- Who is hiring whom (business names, company numbers, addresses, contacts, etc.).
- A short summary of the scale and scope of the project.
- The responsibilities of both parties.
- Project timing and duration.
- A declaration that the contract is an independent cooperation agreement. It should be clear that this is a freelance contract and not a contract of employment. This is necessary to rule out claims of false self-employment.
2. Prices and rates
- Will you charge a fixed amount for the whole project or for the hours you put in?
- Add a clause stating the minimum and maximum hours of work involved if you charge by the hour, indicating that the project will take no more than X and no less than Y hours.
3. Payment conditions
- Payment schedule: three instalments (e.g. 30/30/40), two instalments (e.g. 25/75) or advance payment schedule.
- How much time does the customer have in which to pay you?
- What happens if the customer pays late?
4. Project details, tasks and deliverables
- Provide a short, structured overview that you can review with the customer and adapt if necessary.
5. What if there is additional work above and beyond the original project?
- Explain the procedure you will apply if this happens.
6. How many revisions are included and what is the procedure if more revisions are needed?
7. Terms and conditions
- Can you use external service providers?
- How can a complaint be filed?
- Is there a non-competition or non-solicitation clause?
- Can you refer to the collaboration with the customer in your advertising?
8. Copyright and intellectual property
- Who owns what?
- Retain all copyrights on your work until the project is completed and paid for. Once everything is finalised, the rights are transferred to the customer.
9. Cancellation & illness
- Indicate how the contract can be terminated (process).
- How long is the notice period?
- Termination or cancellation fees.
- If the project is terminated for any reason (the customer goes bankrupt, cancels the project, etc.), the customer is obliged to compensate you financially for the time you have already spent on the project.
- What will happen if an external cause, unexpected circumstances or chance prevent a party from fulfilling its commitments (force majeure)?
10. Signatures, date, timing
- This may go without saying but without these details, your contract can be invalid.
This list gives you an overview of some essential features you can include in your contract to protect you and your customer in case something goes wrong. I also think it is always a good idea for freelancers to seek the help of legal experts when drafting their contracts, just to make sure the contract meets all the necessary requirements.
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