You booked a new client—congratulations! Now it’s time to begin the onboarding process and that starts with sending your new client a contract to sign.

Contracts ensure that both parties are on the same page (both figuratively and literally) regarding the obligations, responsibilities, and benefits of a specific agreement or project. At its essence and core, a good client contract should clearly indicate who is doing what, when, and the pricing involved. While every situation is different, the following provides a brief overview of the essential items needed for a client contract to ensure that all parties are in agreement.

Contact Information

The client contract should include the basics, such as all the contact information, business names, and billing addresses.

Scope of Service or Project

The specifics of the agreement or project should be very detailed, and include all responsibilities, obligations, and timeframes. It is important to take time to think of all the ways that the scope of a project could expand. Consider whether revisions will be included, or how many edits will be allowed per project.

All expectations should be stated with specific and detailed parameters. Maybe you’ve experienced a situation where a client kept asking for more and more of your time without properly compensating you for it. In this clause, you will plan ahead for those situations and make it clear from the beginning that any work outside the stated scope of services will either not be performed or will be billed hourly.

Terms of Payment

Your client contract should include not only the amount of payment for services, but also how that payment will be delivered. Will it be after every milestone? Will a partial payment be required in advance? Will the payment need to be paid in full upon delivery? Will payment be hourly or by the project?

You might also consider adding a penalty or interest payment for late payments or a higher hourly rate for any work that is required after regular business hours or on the weekend.

Termination of Contract

Your contract should clearly state what circumstances, if any, one or more of the parties can choose to terminate the contract before the end of the project or term of the contract.

You may wish to allow either party to terminate the contract if the other party breaches the contact or violates the terms of the contract in a material way.

If your contract is a monthly retainer agreement, you should include a required notice period of at least 30 days before your client can terminate the contract for any reason (other than your breach of contract).

Copyright Clause

If you will be creating or helping your client create any original works (blog articles, graphics, logos, marketing materials, etc.), you should include a clause about who owns the copyright to those finished products.

You might assume that your client owns the copyrights to the work they hire you to create, but the law does not assume this. The author of the work owns the copyright, so make sure transfer and assignment of relevant copyrights is properly addressed in your client contract.

Confidentiality and Non-Disclosure Clause

You should clearly state what is and is not appropriate for your client to disclose publicly regarding your relationship and project. Some of this could include your rate, the process with which you create or develop products, or any communications including emails, pictures, and texts.

Furthermore, you may wish to add a non-disclosure clause that states that any insider information (proprietary information) like your frameworks, methods, and systems, that is not public information and your client gains access to through working with you, may not be disclosed to third parties without your permission.

Limitation of Liability Clause

We never believe that we will make a mistake in our business, but the truth is—no one is perfect, and mistakes can happen. A limitation of liability clause is important because it allows you and your client to agree from the onset of your relationship that even if you do make an error that costs your client money or you breach the agreement, you will not be responsible for a potential domino-effect of other damages that follow.

If the clause is fair and enforceable, you can limit your potential liability if something goes wrong. This is an important clause because without it expressly written into your contract, your client may be able to recover whatever damages they can prove.

Attorney-Drafted Contracts

Unless you have a legal background, never rely on a contract you write yourself or one that you piecemeal together. Not only are you exposing yourself to liability by doing this, but you are potentially entering into a legally binding agreement that won’t be put to the test until it’s too late.

Contractista offers attorney-drafted contract templates specific to your niche! Remember that every industry is different, and your contract should reflect that. Simply download, make a few simple edits, and you’re done. As a best practice, have your finished contract reviewed by an attorney in your jurisdiction.

Not sure which contract is right for you? Contact Contractista founder and Business Attorney, Kailey Jacomet, at kailey@contractista.com and she will help guide you to the perfect template!

* * *

Kailey Jacomet is the founder of Brand Law Boutique and Contractista, where she helps entrepreneurs keep their money in their pockets, instead of out the door in misunderstandings, liabilities, and lawsuits! As a Business Attorney, entrepreneur and mama, Kailey decided to leave the traditional practice of law to be more flexible as a mother and design the life she and her family envisioned. You can find Kailey on her website here or here, or on Facebook.

Some of the above links are affiliate links, which means I will earn a small commission when you click on one of the links and make a purchase. There's no added cost for you, and don't worry - I'll never recommend a product or service that I haven't tried out and loved using. Thanks for your support!

What You Need to Have in Your Client Contract