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SMALL BUSINESS

What should I look for in a freelance contract before signing?

SHORT ANSWER

Check the scope, payment terms, who owns the work, kill fees, and liability. The riskiest clauses are unlimited revisions, IP assignment without payment protection, and broad indemnification.

A freelance contract protects you — but only if you read it. The clauses that cause the most pain: an undefined scope (leading to endless unpaid work), vague payment terms (when and how you get paid, late fees, deposits), intellectual property assignment (do you keep or transfer rights, and is it tied to full payment?), and indemnification (how much liability you’re taking on). Also look for a kill fee if the client cancels, and a clear termination clause. Get anything ambiguous nailed down before signing.

What to do, in order

  1. Confirm the scope of work is specific and bounded.
  2. Check payment terms: amount, schedule, deposit, late fees.
  3. Read the IP/ownership clause — tie transfer to full payment.
  4. Review indemnification and liability limits carefully.
  5. Look for a kill fee and a clear termination clause.

Common questions

Should I get a deposit before starting freelance work?

It’s common and protective — a deposit (often 25-50%) reduces your risk if a client disappears or delays payment. Build it into the contract.

Who owns the work in a freelance contract?

It depends on the IP clause. Many clients want full ownership on payment; make sure any transfer of rights is conditioned on you actually being paid in full.

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Main AI explains documents and general legal rights in clear terms. It is not a law firm and does not provide legal advice. Laws vary by state and change over time — verify specifics for your jurisdiction, and consult a licensed professional for advice on your situation.