12 red flags in a freelance contract
Most bad freelance contracts are not written to trick you. They are the client's standard template, written for their side. Here are twelve terms that often cost freelancers money, with what to ask for instead.
Getting paid
1. Payment "after acceptance", with no deadline for acceptance
Thirty days sounds fine, but the clock only starts when the client accepts the work, and nothing says when that has to happen. Ask for payment from the invoice date, and for work to count as accepted if the client raises no specific issue within a few days.
2. Long payment terms and no late fee
Net 60 or Net 90 means you finance the client's project for two or three months. Without a late fee there is no cost to paying later still. More in payment terms.
3. No deposit on a large project
If the whole fee is paid at the end, the whole risk is yours. For anything longer than a couple of weeks, ask for a deposit before you start (often 30 to 50%) or payment by milestones.
Your work and your tools
4. Rights pass to the client before you are paid
If the client owns the work the moment you make it, you lose your strongest position if they do not pay. Ask for rights to pass on full payment. More in who owns the work.
5. The client gets your own tools and templates
A broad clause can hand over the code libraries, templates and methods you use for every client. Keep your pre-existing materials and give the client a licence to use them in the deliverables.
Scope and changes
6. Unlimited revisions
Agree a number of revision rounds and a rate for more. More in revisions.
7. Vague scope
"Design work and other related tasks" can mean anything. List the deliverables, and say that anything else is a change request with its own price and timeline.
8. The client can change the terms on its own
Watch for "the Client may amend these terms at any time". Changes should need both parties' written agreement.
Ending the deal
9. Termination at any time, with no payment for work done
The client should pay for the work done up to the end and, for cancelled projects, a kill fee for the time you reserved.
10. Automatic renewal and endless exclusivity
A contract that renews on its own, or keeps you exclusive after it ends, can block other work. Ask for a fixed term, renewal only by agreement, and a notice period you can live with.
Risk
11. Liability with no cap and broad indemnities
One clause can put your savings behind a small project. Ask for a cap, usually the fees paid under the contract, and to exclude indirect losses. More in liability and indemnification.
12. A broad non-compete
Not working for "any company in the same industry" for a year can cost far more than the project pays. More in non-compete clauses.
What is often missing
A contract can be risky for what it leaves out: no deposit, no late fee, no limit on revisions, no kill fee, no cap on liability, no deadline for feedback. These are harder to spot than a bad clause, because there is nothing to read.
The SoloOps contract check lists both: the clauses worth discussing, with suggested wording and a message for the client, and the protections the contract does not have.
This guide is general information, not legal advice. Rules differ between countries and states, and a clause that is common in one place can be unenforceable in another. For a high-stakes contract, ask a lawyer where you or your client are based.
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