Table of Contents
What is a Freelance Agreement?
A freelance agreement is a contract between a freelancer and a client that outlines the terms and conditions of the freelancer’s work. This type of agreement can be used for any project or task that is completed outside of an employer-employee relationship.
Few details that are present in the contract are:
- Compensation: The agreed amount that needs to be paid after completion of work
- Timeline: A deadline set mutually by both parties
- Scope of work: Defines the freelancer’s nature of work during the tenure of the agreement
- Additional services: Payment terms set by the freelancer for any extra effort
- Late payment clause: A freelancer can charge an interest rate or set any other terms
- Advance payment: This clause allows freelancers to charge a specific sum in advance
- Termination: Circumstances under which the client can choose to terminate the contract
- Confidentiality: During the tenure, a freelancer should not disclose the work information to any third party
- Privity: Showcases the relationship between the client and the freelancer
- Jurisdiction and dispute resolution: Depends on the nationality of both parties
Documents required to prepare a Freelance Agreement
- Address proof of parties that are involved in the agreement.
- Identity proof of the business or company and the freelancer.
- Documents that verify the names of the involved parties or organisations.
The Essential clauses in a freelancer contract
- Scope or purpose of work
- Timeline of the contract, termination and commencement
- Payment timeline and mode
- Verification of basic information
- Most importantly, a valid consideration under Section 2(d) India Contract Act, 1872
Download Free Sample Freelance Contract Template
Here’s how a freelancer contract would look like:
Benefits of a Freelancer Agreement
There are many benefits to having a freelancer agreement in place, including:
- It Can Help You Get Paid
- It Can Protect Your Intellectual Property
- It Can Help You Avoid Disputes
- It Can Help You Get the Job Done Right
- It Can Help You Get the Job Done on Time
Frequently asked questions
Do You Need a Contract to Freelance?
Contracts for freelancers are highly recommended because it primarily exists to protect both the freelancer and the client. Through this legal contract, the freelancer is getting a guarantee of the money they will receive for the work delivered and the company is getting a guarantee of the work and deliverables they can expect.
What Does Freelance Contract Look Like?
A freelance contract should have the scope of work, the compensation given, additional services that may be required, the late payment clause, and the termination clause.
Are Freelance Contracts Legally Binding?
Yes, freelance contracts are legally binding
How Do You End a Freelance Contract?
You can end a freelance contract by activating the “termination clause” added in your contract.
How Long Can You Freelance for One Company?
There is no time limit on how long you can work for one company as a contractor. When working for a company long-term, it is important to remember what your role is and how it could be perceived from a taxation perspective.