What is a Freelancer Contract?

A freelance contract or a freelance arrangement that describes the steps and requirements or terms and conditions between the freelancer and the client.

It specifically states – 

a) the qualifications of the job, 

b) the time frame of the contract, 

c) the method and arrangement of payment, & 

d) other aspects related to the fulfillment and execution of the job by the freelancer. 

Over the years, with the development of technology, more and more tasks are authorized and executed through freelancers. Therefore, freelance contracts have become widespread, especially in the IT sector.

An agreement for a particular and described work profile is important for the benefit of the client and the individual. Those who would be working would primarily benefit both parties equally.

Advantages of A Freelancer Agreement – 

1. Reduces Liabilities

A definite Freelancing agreement will decrease the risk of impending lawsuits or any other confusion in the future. Both parties are sure about the consequences of the breach of the contract and the agreement.

Contracts always help in creating a defined relationship and desired outline of work, so that there is no difficulty in the future. In the case of an independent contract, it becomes more important to have the desired background of work.

2. Guarantees Confidentiality

If the essence of the work calls for confidentiality, a consultation contract can be drafted accordingly and allows the addition of several clauses based on confidentiality.

While the case of freelance is different, projects can involve many aspects which have to be hidden in this case if there is no contract then the risk of leaving out the details is very high. So contracting would be the best idea.

Points to be Included in a Freelancer Contract – 

• Contact details from Freelancer and Client –  All the contact details should be mentioned in the contract to be clear and precise information.

• Scope of Project – The scope of the project should be mentioned without any mistake to ensure future charges if any.

• Deliverables – Due dates and important dates should be mentioned. This point is important for the client to do their job to protect their time, money and recover damages if anything happens.

• Pricing & Rates – Prices and rates should be mentioned and this goes for both parties as it allows both to be clear about their concerns and details.

• Payment Schedule & options – If there are any recommendations and additional details for payments and schedules, this should be mentioned in the contract prior to submission of the contract.

• Ownership / Copyrights on Intellectual Properties – The legal rights to the project and the credit of the project are the main questions when working through freelancers, so it’s important to mention that as well.

• Legal terms – All legal terms and consequences of breach of contract should be mentioned and the legal procedures that both parties are allowed to take.

• Kill fee and cancellation terms – If there is any chance of cancellation of the project then it should be mentioned in advance in the contract to avoid any problems and issues.

How To Prepare A Freelancer Agreement?

While preparing a freelancer contract, the below-mentioned conditions should be applied:

• Services/Non-services: Be explicit and thorough about the duties presented and not produced.

• Payment Terms & Rates: Specify terms of salary and allowances, whether fixed or variable based on the plan.

• Additional Work: This article helps in incorporating additional services (if required) and their reimbursement rates.

• Terms for Late Payments: In a case concerning delays, the articles of late payment can help both freelancers and employers to stabilize payment rates and interest (if required).

Documents Needed To Prepare Freelancer Agreement :

• Documents that encourage the identification (designated) of the parties involved in the agreement.

• Documents that confirm the address of the parties involved in the agreement.

• Documents that establish the names of the companies concerned