Legal contracts: What to consider and nit-picky things to include
Whether it’s getting paid on time, avoiding scope creep, or dealing with micromanagement, a contract is every freelance writer’s best friend—as long as it’s done right. These documents are a point of reference and a tool to help keep both parties on the same page around timing and deliverables (and other important stuff, like payments.)As you read, keep in mind that this is not legal advice. We strongly recommend hiring a lawyer to draft a contract template for you. It’s a one-time investment that’s well worth the small fee.What should you include in your contract?You want to ensure you’re not leaving any loose ends in your contract, which is why being detailed works in your favor. The specifics may vary depending on your work, but some of the essentials to include in your contract are.Ownership of work: In most cases, you’ll transfer the ownership of the work to the client. Once the client clears your invoice, the rights automatically transfer to them.Payment terms: You want to be paid in full and on time. You can also require the client to pay a deposit in advance. If the client fails to pay on time, you can include a late fee in your payment terms. Contract duration: Define the time period you’ve agreed to do business with the client. If it’s an ongoing engagement, you can enter a termination clause instead of contract duration defining the process and notice period required for terminating the contract.CancelationsProjects can get canceled. So what about the work you’ve already done? Do you still get paid for your work? What about your contract’s dissolution? Layout a cancellation clause in your contract that answers these questions. “The last thing you want is never to get paid for your work. Having this cancellation clause laid out in a legally-binding document that would hold up in court gives you a leg to stand on.”You’ve probably been in a situation where a client suddenly stops responding. If the client signs a contract, you can sue them to recover the due amount. That said, suing might not always be feasible. For example, if the amount due is only $500, it’s best to move on (even though it sucks.)Non-compete clauseFreelancers often work with clients in a specific industry or niche. If a client’s contract has a non-compete that prohibits you from working with their competitors, that’s a problem.You might consider negotiating with the client and explaining why that wouldn’t be practically possible. You can offer to add a clause that requires you to keep their information confidential instead.If you’d like to accept the non-compete, set a reminder for the day it ends.“Within my project planning software, I’d get a ping once the one-year mark is up, reminding me that it’s okay to pitch a specific client.”Subcontractor AgreementsLet’s talk about contracts for freelancers working for you. Having freelancers sign a subcontractor agreement helps eliminate gray areas, establish rules, and set expectations.There is an overlap among the essentials, but some things differ in client and subcontractor agreements. Here are examples of things to include in your subcontractor agreement:Ownership: Can subcontractors use the work in their portfolio? In most cases, you’ll want to show the work in your own portfolio and disallow the subcontractor from doing so. In instances where the client disallows you from using work in your portfolio—such as ghostwriting, the subcontractor can’t use the work in their portfolio either.Workflow: Freelancers have their own processes. Yours might differ, which can lead to friction and disrupt the workflow. Adding your workflow to the contract sets the right expectations and provides freelancers with an overview of your processes. For example, you might require freelance writers to get an outline approved before moving forward with the first draft. Or you might want the option to request two rounds of edits.Payment terms: Like with clients, you should include the payment terms in your subcontractor agreement. Specify the price, invoicing date, and payment date in the contract. You might also mention penalties in cases where the work is plagiarized or subpar.Non-compete: In the case of subcontractor agreements, the non-compete clause differs a bit. You’re not binding them from taking more work. Instead, you’re safeguarding your relationship with a client. Suppose you’ve subcontracted work from one of your clients to a subcontractor. Once the subcontractor’s agreement with you ends, they reach out to your client and offer a lower price. See the problem? A non-compete clause prohibits the subcontractor from working with the client for a fixed period. One year is a reasonable time frame, but the duration may vary based on your industry and type of work.Should you use contract templates?Yes, using contract templates is fine. There are many options from The Contract Shop or one of the other websites that offer freelance contractor templates. You can always customize the contract, but remember to have a lawyer review it and make sure that you’ve read the entire contract yourself and understood every clause. That’s the only way to ensure your contract is foolproof.Final note: Remember that you can have an airtight contract and not get paid. However, a contract ensures you have a legally-accepted document to show in court when you need to recover a large amount or protect yourself in a lawsuit.This season of the podcast is brought to you by EditorNinja. Stop looking for an editor or editing content yourself. Use EditorNinja's flat rate content editing services to save yourself time and money by having all of your marketing content professionally edited. Book a free editorial assessment today to learn more.