Use this checklist before signing any freelance contract. Each item represents a common risk area — mark them off as you go to ensure your protection.
Payment terms are clearly defined (Net 14 or Net 30)
Avoid Net 60 or Net 90
Late payment fee/interest is specified
Typically 1.5% per month
Kill fee or cancellation fee is defined
Protects if cancelled mid-project
Payment triggers are clear (upon delivery, approval, etc.)
Vague triggers = delayed payment
Deliverables are clearly defined
Include specific outputs and quantities
Revision rounds are limited and defined
"Unlimited revisions" is a trap
"Done" state or acceptance criteria specified
Prevents scope creep
Additional work is priced or has a process
Hourly rate or change order process
IP ownership is clearly stated
Who owns the work after delivery?
Pre-existing IP is carved out
Your tools, templates, code bases
License to use your work is defined
Scope of client usage rights
Portfolio rights are granted
Can you show this work?
Non-compete is absent or reasonable
California: unenforceable
Non-solicitation is reasonable (duration, geography)
12 months is standard
Confidentiality scope is reasonable
Avoid perpetual NDAs
Restriction scope is specific, not overly broad
Should name specific competitors
Limitation of liability is defined
Caps your maximum exposure
Indemnification is mutual or limited
You shouldn't cover all client risks
Insurance requirements are reasonable
Match to your actual exposure
Warranty disclaimers are present
Standard "as is" language
Termination rights are fair for both parties
One-sided termination is a red flag
Notice period is specified
14 days is standard
Payment upon termination is defined
Pay for completed work + kill fee
Return of materials/process is clear
What happens to work in progress?
Independent contractor status is confirmed
Client shouldn't control how you work
Tax responsibilities are clear
You handle your own taxes
Benefits/expense reimbursement addressed
None = correct for IC
No exclusivity required (unless compensated)
Don't be locked to one client
The average contract dispute costs $15,000 in legal fees and lost income. Most of these issues could be caught by reviewing these 25 key points before signing.
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