Freelancers should be aware that establishing a freelance contract is crucial before starting out.
Even so, it is surprising to see that only two-thirds of freelancers use them, according to the survey.
There are cases of publishers changing terms on freelancers without notice, and 54% of freelancers report clients not fulfilling payment requests in a timely manner.
You run the risk of being caught in either scenario or worse if you are a freelancer agreement in india without a contract.
The following are some of the benefits of writing a freelance contract:
Table of Contents
1. Avoids costly omission
You may want to clarify the way you handle revisions, deliveries, and payments in a contract. For example, if you have a way to handle revisions, deliveries, and payments, you may want to specify that in the contract.
Unless you have a contract, the client may use the service however he or she sees fit, which may not protect your interests or privacy.
2. Eliminates misunderstanding
The best relationship doesn’t always run smoothly. If there is a misunderstanding and you have an agreement, you can refer to it to clarify the issue.
It is best to add a clause to your contract that states that you and the client will only be bound by what is agreed upon in the contract. This will ensure that the client does not introduce anything from the phone call that was not included in the contract.
3. Avoids being stiffed
A contract is probably the most important reason why freelancers should have one. Statistics show that 44% of freelancers are cheated by clients at least once. You don’t want to be one of the many.
In case a client does not settle a payment, a freelance contract protects you from non-payment due to the fact that clients know they can be sued or bring public shame on them should they fail to settle.
4. Sets the terms and conditions early
Approximately 60% of freelancers believe that they are not taken seriously by the community or their clients, so they are vulnerable to mistreatment and being taken advantage of.
Lay out your terms and conditions before the project begins. This includes how the work will be completed. What happens if a client does not pay or is not satisfied with the outcome?
It is important to set boundaries and expectations upfront to get everyone on board to be serious about the project.
Your freelance contract should include these 6 essentials
The first step to success in freelancing is to understand what freelancing contracts can offer. The second step is knowing how to write a good contract.
How to Write a Clear Freelance Contract?
It is important that your contract is as explicit as possible in order to avoid misunderstandings and speculations. Below you will find the gaps that should be addressed before sending a contract to your client.
1. Use quantitative language
Pay attention to payment and working hours when stating terms. Avoid describing them with words, but quantify them. If you are charging by project, indicate how much you are charging.
You should include a duration if it’s a short-term project. Be clear about whether the project is a 30-day or 14-day project and don’t presume the project will end when you submit it.
2. Be specific and concise
The contract should not contain legal jargon, but should be easy to understand. Avoid using ambiguous terms such as “Bona Fida,” “Inter Alia,” or “Pro-rata” which may create unnecessary barriers in communication between the parties.
3. Dates
A contract should state the start and end dates, as well as the intended duration. In the case of an ongoing relationship, the day you plan to renew the agreement should be specified.
The latter is the duration in which you will execute the contract.
Before reevaluating the contract, it is best to wait 3 or 12 months. It is this time period that will help you gauge your ability when the contract ends and determine whether you can increase rates or offer more services to the client.
4. You should use the official names of both businesses
In some business situations, the entity may operate as a Limited Liability Company (LLC) and also as a Corporation. It is important that you have the correct name of the entity to ensure that you can easily defend your contract in case of a dispute. Be wary of clients who have no business name or who use nicknames or personal names.
Conclusion
It is obvious that a freelance contract is a vital step toward securing your freelance business’ future. Now that you know how important a freelance contract is, you will never doubt its importance again.
Your freelance business will benefit from formalizing the relationship and avoiding late payments, unrealistic expectations and changes, legal battles, and other unforeseen events if you do not use a contract.
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