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Contracts, Deposits, and Late Payments: The Freelancer's Legal Survival Guide

Meera Nair
April 18, 2024
11 min read
Contracts, Deposits, and Late Payments: The Freelancer's Legal Survival Guide

Payment issues are the #1 source of freelancer stress. These 6 contract clauses will protect 95% of the situations you'll ever encounter.

A strong contract is the foundation of a healthy freelance business. It's not about planning for a lawsuit; it's about clear communication.

Clause 1: The Kill Fee

What happens if the client cancels the project halfway through? You need a kill fee clause to ensure you are compensated for the time blocked off in your schedule.

Clause 2: Revisions

"Unlimited revisions" is a quick path to burnout. Define exactly how many rounds of revision are included, and the hourly rate for any work beyond that scope.

Clause 3: Late Payment Penalties

Specify when payment is due (e.g., Net 15) and outline the exact percentage fee applied for late payments. Just having this clause reduces late payments by 80%.