What Is a Freelance Contract?
A freelance contract is a legal agreement between a freelancer (the person hired to do the job) and a client (the individual or business requesting the work). This agreement outlines key details such as:
- What work will be done (the scope of the project)
- When it’s due (deadline and general timelines of the project)
- How much the freelancer will be paid (payment terms)
This helps avoid confusion and keeps both parties on the same page. A freelance contract is different from an employment contract. It is used when a freelancer is hired for a project but isn’t brought in as an employee. So, unlike an employment contract, it does not include things like job benefits or tax withholding.
Are Freelance Contracts Legally Binding?
A freelance contract is legally binding if it includes:
- An offer from one party
- An acceptance by the other party
- A mutual agreement, supported by consideration, on terms and conditions
- A signature from each party
These elements form the basis of an enforceable contract under US law.
Freelance vs Contract Workers
Freelancers and contract workers are often grouped together. They are typically classified as independent contractors under IRS guidelines. They work independently, set their own schedules, and are responsible for their own taxes.
That said, there are slight differences:
- Freelancers usually work with multiple clients on short-term or project-based work.
- Contract workers may work for one client at a time, often for a set period.
Despite these differences, both types of workers can use a freelance contract or an independent contractor agreement to clearly outline project terms, deadlines, and payment expectations.
For a deeper breakdown of how independent contractors differ from employees, check out our Independent Contractor vs. Employee guide.
When Do You Need a Freelance Contract?
You should use a freelance contract anytime you are hired to complete work in exchange for payment. Whether the project is short-term or ongoing, a freelance agreement lays out the terms clearly and helps set the right expectations.
A freelance contract is especially helpful when:
- You’re working on a new project for a client
- You’re providing creative or professional services like writing, design, or consulting
- You want to document project deadlines, deliverables, and payment terms
- You need proof of the agreement in case of non-payment or disputes
Even a basic contract for freelance work can help establish trust between you and your client. It can also reduce risk, especially when working remotely or with a new client.
While verbal agreements can be valid, they are difficult to prove or enforce. To avoid misunderstandings later, it’s best to have your terms in writing. To understand the risks and limitations, read our guide on when verbal contracts are legally binding.
How to Write a Freelance Contract
A well-structured contract sets clear expectations and ensures both sides understand their responsibilities. Legal Templates offers a free customizable freelance contract template that includes all the essential sections you can use for your projects.
Here are all the details you should include when creating a freelance contract:
Start With the Basic Information
List the full names and contact information of both the freelancer and the client. Include the project title and the start date of the agreement.
Define the Scope of Work
Clearly describe the services you’ll provide. Be very specific about all the tasks, deliverables, and timelines. This section helps prevent scope creep and keeps expectations aligned.
Set Payment Terms
Mention the payment terms, including details about how much you’ll be paid and when.
Common options include:
- Hourly rates
- Flat or fixed-priced per project fees
- Milestone-based payments
You can also include details such as late payment fees, preferred payment methods, or invoicing schedules.
Establish a Timeline
Include the start and end dates and deadlines for each project phase. If you have specific deliverables, include due dates for each. Setting a clear timeline for your project is important to keep both parties accountable.
Include a Revisions Clause
If you want to offer the client revisions, make sure you include the total number of revisions allowed for the project within the freelance contract. Clarify if revisions will be billed separately and at what rate.
Outline Ownership and Copyright
Specify who will own the final work. Some clients want full rights to any work you produce while working on their project, while others may only need a license to use it. Include a “work made for hire” clause if the client wants to own the rights to the work (17 US Code § 101).
If you plan to keep ownership and license the work to the client, be clear about how they can use it and whether you’d like to be credited.
Add Confidentiality Language (if needed)
If the project involves sensitive information, you can add a basic confidentiality clause or attach a non-disclosure agreement (NDA). This way, any shared information between the parties stays protected.
Specify Dispute Resolution
Clarify how disputes will be handled or resolved, such as through arbitration, mediation, small claims court, or other appropriate courts. This section can provide certainty if problems arise down the road.
Sign and Date
The contract becomes official once both parties sign and date it. If both parties agree to the method, you can sign it physically or electronically.
Sample Freelance Contract
Use our sample freelance contract to understand how to fill each section with your project details. Complete our questionnaire to generate your freelance contract, then download it as a PDF or Word file.
