Freelancer guide
Freelance contract basics: the 7 clauses every contract needs
A contract is not paperwork for its own sake. It is the one place where you and your client agree — before any work starts — on what will be delivered, what it costs, when it is paid for, and what happens if plans change. These seven clauses cover almost every dispute freelancers actually run into.
This guide is general information, not legal advice. Laws differ by country; for a high-value project or a real dispute, ask a qualified lawyer where you work.
The 7 clauses
Clause 1
Scope of work — the most important clause
Write the work as counted deliverables a stranger could check: how many pages, which features, what format, and what is explicitly excluded. "A website" has caused more freelancer disputes than almost any other phrase; "a 5-page marketing site, design plus front-end, copy supplied by the client" leaves far less room to argue. List exclusions too, so extra work has a clear price later.
Scope: design and front-end build of a 5-page marketing website (Home, About, Services, Pricing, Contact). Copy and photography supplied by the client. Excludes: back-end development, hosting setup, and ongoing maintenance.
Clause 2
Payment terms — rate, schedule and method
State the rate (hourly or fixed fee), the total, the payment schedule, the method, and the due date for each invoice in days — Net 14 is common for freelancers. Ask for a deposit before work starts: 25–50% upfront is standard on projects over $500. Say plainly whether work starts before or after the deposit arrives.
Fee: $1,200 fixed. 50% ($600) due on signing, before work starts; 50% on delivery. Invoices payable within 14 days of the invoice date. Payment by bank transfer.
Clause 3
Revision limit — where projects die slowly
Define exactly how many rounds of revisions are included, and what counts as a revision. Two rounds means: you deliver, the client gives consolidated feedback, you revise, they review once more, you finish. A new brief, a redesign, or a change of direction after sign-off is new work, priced separately — say so in the contract.
Two rounds of revisions are included. A revision round is one set of consolidated feedback on the delivered draft. Work beyond two rounds, or a change of direction after sign-off, is charged at $75/hour.
Clause 4
Kill fee — if the client cancels
Projects get cancelled: budgets vanish, priorities change. A kill fee says what you are paid for work already done if either side ends the project early. Without one, a cancellation halfway through can leave you with hours worked and nothing to show for them.
If the client cancels after work has started, the client pays for all work completed to date, plus a cancellation fee of 25% of the remaining fee.
Clause 5
Ownership — who owns the work, and when
In most freelance agreements, ownership of the finished work passes to the client only when they have paid in full — until then, it stays with you. State that plainly, and say whether you may show the work in your portfolio. If the client wants exclusive rights, that is a different price from a licence to use it.
Ownership of the deliverables passes to the client on receipt of full payment. Until then, all rights remain with the freelancer. The freelancer may display the work in their portfolio unless the client requests otherwise in writing.
Clause 6
Confidentiality and independent-contractor status
Two short clauses that prevent two different headaches. Confidentiality: you will not share the client's private information, and they will not share yours. Independent-contractor status: you are not their employee — you set your own hours, use your own tools, and handle your own taxes. This matters for tax and employment law in most countries.
Each party will keep the other's confidential information private. The freelancer is an independent contractor, not an employee of the client, and is responsible for their own taxes and equipment.
Clause 7
Termination and disputes — how it ends
State how either side can end the agreement (for example, 14 days' written notice), what is paid on termination, and how disagreements are handled — a conversation first, then mediation, then the courts of a named place. A contract that only explains how work starts, and never how it ends, is half a contract.
Either party may end this agreement with 14 days' written notice. On termination, the client pays for all work completed to date. Disputes will first be discussed in good faith; if unresolved, they will be settled under the laws of [your country/state].
What to avoid
Vague terms
“Reasonable time”, “best effort” and “unlimited revisions” sound friendly and mean nothing. If a term cannot be counted or dated, rewrite it until it can.
No payment schedule
A fee with no dates is a promise with no deadline. Every contract needs the deposit, the milestones, the due date for each invoice, and what happens after it.
Signing after work starts
Terms agreed after the work has begun are hard to enforce. Get the contract signed before the first hour is worked — that is the whole point of it.
Before you sign — a 5-point checklist
- Can a stranger tell from the scope whether the work is done? If not, rewrite it.
- Are the fee, deposit, due dates and late-payment terms all written down?
- Is the revision limit a number, with a price for anything beyond it?
- Does it say who owns the work, and when ownership passes?
- Does it say how either side can end the agreement, and what is paid then?
If a client will not sign a contract, that is useful information too — it usually means the scope or the price was never really agreed. And once the contract is signed, keep it with the invoice: when a payment goes late, the follow-up is far easier if the agreed terms are one click away. Our late-payment follow-up guide shows the exact 5-step schedule to use.
Questions
Do I really need a written contract for a small freelance job?+
Yes — even a one-page agreement beats a handshake. A short contract fixes the deliverables, the fee, the due date, the payment date, the revision rounds and who owns the work in one place both sides can check. Most freelance disputes are not about bad faith; they are about two people remembering the same conversation differently.
What should I never leave out of a freelance contract?+
Three things cause most disputes: the scope (exactly what is included and excluded), the money (fee, deposit, due dates, what happens if payment is late), and ownership (who owns the work, and when). If those three are written down clearly, most other clauses are refinements.
How much deposit should I ask for?+
25–50% upfront is standard for freelancers, and 50% is common on projects over $500. A deposit confirms the client is committed before you start, and means you are never owed the full amount at once. State whether work starts before or after the deposit arrives.
What does a late-payment clause actually do?+
It states what happens after the due date — a late fee, interest, or a pause on further work — so you are not negotiating from scratch when an invoice goes unpaid. Terms only protect you if the client agreed to them before the work began, so put them in the proposal and the contract, not just on the invoice. Our late-payment guide shows the follow-up schedule to use once an invoice is overdue.
Is this guide legal advice?+
No. This guide is general information based on how freelance contracts commonly work. Laws differ by country, and some places have specific rules for freelance work. For a high-value project, an unusual clause, or a real dispute, ask a qualified lawyer where you work.
How does FreelancerFlow help with contracts?+
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