HOW TO WRITE A CONTRACT
So you got yourself a gig, hey?
A paid gig? Well done! But wait–how will you ensure you’ll get paid, and when? What if your client asks for more work halfway through the project? Or scraps the whole thing right before the end? You better make sure you’ve got something in writing–or better yet, get yourself a contract.
As a freelancer, you might think creating a new contract each time you take on a new project might seem like a hassle, but they’re essential for protecting yourself, clarifying expectations, and ensuring you actually get paid.
Simply put, a contract is just a written agreement between you and your client that details what each side will do, how much you’ll be paid, and when. Contracts exist to protect you in case something goes wrong—whether it’s a payment issue or a change in project scope.
Stop rolling your eyes–you need a contract. Here’s why:
Clarifies Expectations: A contract clearly defines what you and your client are expected to do. Contracts cover payment terms, usage rights, scope of work, and much more.
Protects Your Ass (legally): If disputes arise, having everything in writing is your best form of protection. We always use protection.
Ensures You Get $$$: By outlining payment terms, you’ll know exactly how much and when you’ll receive your money. So you can book your nail appointment accordingly.
Prevents Misunderstandings: Everything from deadlines to the scope of work is in black and white, avoiding any confusion.
Creates Respect: If anything, your client will take your commitment to clearly outlining the project for both sides as a sign of respect, both for yourself and towards them.
In short, having a contract makes your freelance work more professional and secure.
I’ve never used one before and I’ve always been fine!
It’s tempting to dive into a project without making your client sign a contract. There are plenty of working freelancers in our digital network who operate this way and get by just fine—until they don’t. While this relaxed attitude towards doing business might not bite them every time they take on a project, when it does, it bites hard. Even the simplest of written agreements can save you a lot of headaches down the line.
Okay, so how do I actually write one?
There’s no one-size-fits-all when it comes to writing contracts—some can be as detailed as a small novel, while others suffice with just a few sentences. The important thing is to have something in writing that sets clear expectations. This article will show you how to draft a basic contract so you can start protecting yourself immediately, without getting bogged down in legal jargon. Even a simple agreement can save you from a lot of potential issues down the line.
***Disclaimer: This isn’t legal advice. We are freelancers, not lawyers, and we’re sharing what’s worked for us. For specific legal advice, PLEASE consult a professional. Don’t sue us!
What type of contract should I use?
Different projects require different kinds of contracts. Here are the four types that have become the most common in our world.
1. The Deal Memo
Best for: uncomplicated projects with quick turnaround times and deadlines.
A deal memo outlines basic terms between two parties—think of it as the Diet Coke of contracts. It includes key information like who’s involved, the scope of work, payment terms, deadlines, and deliverables. While it’s not as comprehensive as a full contract, it’s a great starting point.
2. The General Service Agreement (GSA)
Best for: long-term, service-based work with evolving tasks (e.g., ongoing branding services, creative consulting).
A GSA is a bit more detailed and is used for all kinds of services, from consulting to marketing. It covers things like compensation, timelines, service standards, confidentiality, and ownership of work and intellectual property. It’s an excellent way to avoid misunderstandings and ensure both sides are on the same page. GSAs are often used for longer-term or recurring services where a service provider may engage with the client on an ongoing basis. The relationship can span several projects or services over time.
3. Independent Contractor Agreement
Best for: a temporary or project-based basis (e.g., photographers, designers for one-off projects).
This is the contract you need when working as a contractor rather than an employee. It defines your status as a contractor, not an employee, and covers essential details like project scope, payment terms, confidentiality, and ownership of work. It’s vital to clarify that you’re responsible for your own taxes, insurance, and benefits. These contracts are more commonly used for short-term projects or specific one-off tasks. Once the project is complete, the contract is generally terminated, though the same contractor may be hired again under a new agreement.
4. Sales Agreement
Best for: the sale of products or licensing of artwork (e.g., selling digital prints or licensing designs).
For product sales or one-off service purchases, a sales agreement sets out exactly what’s being sold, the price, delivery details, and other conditions. It’s a safeguard to ensure both you and your client know the full terms of the deal. Sales agreements are used in various industries for one-time purchases or ongoing supply relationships.
What do I even write in my contract?
Each type of contract will have its nuances, but here are the basic components that apply across the board. Be sure to customize based on the type of contract you're using (GSA, Independent Contractor Agreement, Sales Agreement, etc.):
Title
Keep it simple and clear, like “Independent Contractor Agreement” or “Sales Agreement”.
Parties Involved
List the full legal names of both parties. Specify who is the contractor (you) and who is the client.
Scope of Work/Services
Clearly describe what work will be performed or what services will be provided. The more specific, the better—no room for ambiguity here.
Payment Terms
Detail how much will be paid, when it will be paid, and how (e.g., hourly rate, flat fee, payment schedule). If there’s a deposit or installment, mention it.
Timeline/Deadlines
Include start dates, deadlines for deliverables, and final project completion dates. Milestones can also be added if it’s a larger project.
Revisions
Define how many revisions or adjustments are included in the project. Mention additional costs for extra rounds of revisions, if applicable.
Ownership of Work/Intellectual Property
Clarify who owns the work produced, especially important for creative projects. You might retain ownership and license the work to the client or transfer ownership entirely.
Usage and Licensing
If the work involves intellectual property (photos, designs, writing), explain how the client can use it. Limitations on usage, like non-commercial or specific mediums, can be included here.
Taxes and Fees
Mention whether the agreed-upon fee is inclusive or exclusive of taxes. If you’re required to charge tax (GST, VAT, etc.), specify this upfront.
Confidentiality
Include a clause that ensures sensitive information shared during the project is kept private and not disclosed to third parties.
Termination Clause
Outline how either party can terminate the agreement and under what circumstances (e.g., non-payment, project delays). Specify any fees if the contract is ended prematurely.
Liabilities and Indemnities
Clearly state who is liable in case of loss or damage. It should protect you from being responsible for unforeseen issues beyond your control.
Signatures
Always include space for signatures from both parties, with names and dates. Even a simple digital signature adds legitimacy.
How should I format my contract?
Here are some basic formatting guidelines for your basic (but effective) contract:
Keep it Structured
Use headings (like Scope of Work, Payment Terms) to make it easy to read.
Clear and Concise
Short sentences, straightforward language. You want your client to understand the terms, not get lost in legal jargon.
Organized Sections
Group related information together. For example, payment terms should include all payment-related details like amounts, timelines, and taxes in one section.
Numbered Clauses
Numbering each clause makes it easy to reference specific points in follow-up discussions.
Consistent Formatting
Use the same font, size, and style throughout. Bold important sections (like deadlines or fees) for easy reference.
Remember, different contract types will require different details, so always double-check the specific clauses that apply to the type of contract you're working with!
Do I need my client to sign it?
Surprisingly, not always! Email agreements can be legally binding as long as they clearly outline the terms and both parties agree in writing. Here’s how to make email agreements work:
Make the Terms Clear: Treat the email like a contract—detail scope, payment, deadlines, etc.
Get Explicit Agreement: A simple “I agree to the terms” in writing from the client is enough.
Keep Records: Save the email correspondence as proof.
Consider E-Signatures: For more security, you can use tools like DocuSign to get a formal signature.
Resources:
Templates: Law Depot is a useful resource for creating and drafting contracts, which offers a free trial and several types of templated contracts.
Terminology: When legal jargon is unavoidable, familiarize yourself with the glossary of fancy legal-sounding words that will impress everyone from your client to your paralegal cousin.
Community support: Talking to others who may have had similar work experience or trajectories can be mega helpful. We’ve launched a community WhatsApp group called POSTERCHILD+ to give our community members a place to ask questions, get advice, and get informed on industry rates, pricing and all the nitty gritty. You can click here to request to join POSTERCHILD+.
Having the experience necessary to fully cover your ass with a contract usually requires a significant amount of trial and error. Without the help of a lawyer, it’s going to take some messing up and fumbling around before you figure out how to best suit your needs in writing your own contracts. That being said, it’s still always better to have one in place than not. Contracts may seem like an annoying extra step, but they’re there to protect you, keep your work professional, and make sure you get paid. Whether you’re using a deal memo or a full-blown service agreement, getting it in writing is just smart business.
All photos by Shauna Summers.
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