A freelance contract is not a formality. It's the document that defines what you agreed to, what happens when something changes, and what you do when a client doesn't pay. Done right, it protects both parties. Done wrong — or skipped entirely — it turns disagreements into expensive problems.
Here's what actually needs to be in every contract you sign.
The Basics (Non-Negotiable)
Parties. Full legal names on both sides — your name or business name, and the client's official company name and address. Not "John at TechCorp." The entity that can be held to a contract.
Scope of work. This is where most contracts fail. "Website design" is not a scope. "Design and development of a five-page marketing website, including home, about, services, contact, and blog index page, based on the approved wireframes in Figma" is a scope. The more specific this section, the less room for scope creep.
Deliverables. What exactly are you handing over? Source files? Just the final output? Login credentials? Specify this. "Design files" means different things to different people.
Timeline. Start date, key milestones, final delivery date. If the timeline depends on the client providing materials or feedback, say that explicitly: "Delivery dates assume client feedback within 3 business days of each milestone."
Rate and payment terms. Your rate, the total project fee or hourly estimate, when invoices will be sent, and when payment is due. If you invoice at milestones, name them. If you charge by the hour, state the minimum billing increment (usually 30 minutes or 1 hour).
Payment method. Bank transfer, online payment — whichever you accept. Fewer surprises at invoice time.
The Clauses That Actually Protect You
Revision rounds. Unlimited revisions is a trap. Define how many rounds are included and what happens when the client wants more: "Two rounds of revisions included. Additional rounds billed at the standard hourly rate."
Scope change process. Anything outside the agreed scope should require written approval before work begins, with a clear note that it will affect the timeline and cost. This one clause prevents most scope creep disputes.
Intellectual property. Who owns the work? The default varies by jurisdiction. Make it explicit: either the client owns everything upon final payment, or you retain rights until payment is received, or some hybrid. Don't leave this to assumption.
Kill fee. What happens if the client cancels midway through? A kill fee — typically 25–50% of the remaining project value — is standard. Without it, you absorb the full cost of a client changing their mind.
Late payment. Interest on overdue invoices, typically 1.5–2% per month. You may never enforce it, but having it in writing changes how clients prioritize your payment.
Confidentiality. If you're working with sensitive business information, a mutual NDA clause protects both parties and signals that you take client confidentiality seriously.
What Most Freelancers Skip
Governing law. Which country's (or state's) law applies if there's a dispute? This matters more than it seems. Add a single line: "This agreement is governed by the laws of [jurisdiction]."
Dispute resolution. If something goes wrong, what's the process? Mediation before litigation, arbitration, or straight to court? Even a simple clause ("Both parties agree to attempt resolution through good-faith negotiation before pursuing legal remedies") reduces the chance of things escalating.
Force majeure. Rare but worth having. If circumstances outside either party's control prevent the work from being completed, what happens to the contract?
Client approval. A clause stating that client sign-off at each milestone constitutes approval of that phase, preventing clients from coming back later and rejecting work they already approved.
The Independent Contractor Clause
If you're operating as a freelancer and not as an employee, your contract should explicitly state that. Something like: "The contractor is an independent professional and not an employee of the client. The contractor is responsible for their own taxes and professional insurance."
In certain markets (particularly the Netherlands with its DBA legislation), this clause is not just best practice — it's legally significant.
How to Get Contracts Signed
A contract that's sent by email and never signed is almost as bad as no contract. Use e-signatures. They're legally binding in most jurisdictions, they're faster than printing and scanning, and they create a clear audit trail.
TAV generates contracts from your project details and handles digital signing automatically. The signed document is stored and accessible to both you and your client — no chasing, no confusion about which version was agreed to.