How to Write A Contract Agreement
And Why You Need Them for every Client
Contract agreements are essential in professional relationships, providing both parties clarity, protection, and accountability. They establish clear expectations, outline responsibilities, and help prevent misunderstandings. By formalizing the terms of a project, contracts ensure everyone is on the same page, making the collaboration smoother and more professional. A firm contract protects you legally and builds trust with your clients, demonstrating your commitment to fairness and transparency.
Why Each Section is Necessary
Below are descriptions and examples for each section you’ll find in a contract agreement. At the end of the post, I include an option to view the last agreement I had created and had signed.
Description of Services: This section defines the scope of work, ensuring both parties understand exactly what is being delivered. It eliminates ambiguity and sets a clear standard for the job expected.
Performance of Services: This outline outlines how the contractor will complete the work independently, clarifying that they are not employees. This helps the contractee and the employer measure the services to be performed and is crucial for maintaining legal boundaries in the relationship.
Payment for Services: This specifies the amount, method, and timing of payments, protecting both parties from compensation disputes. Detailing milestones or payment schedules is essential to avoid surprises.
The termination Clause allows either party to exit the Agreement under defined circumstances. It provides flexibility while protecting against abrupt or unfair cancellations.
Confidentiality protects sensitive information shared during the project, building trust between parties. It ensures that business-critical details remain secure even after the project concludes.
Applicable Law: Defines which jurisdiction's laws will govern the contract, offering a clear legal framework in case of disputes.
Each section contributes to creating a comprehensive agreement that addresses every potential concern. While some sections may seem overly detailed, they are designed to safeguard both the contractor and the client by anticipating challenges before they arise.
How to Write a Freelance or Contractor Agreement
A well-crafted contract ensures clarity and protects both parties in a professional agreement. Below is a breakdown of the essential components, using an example of a technical writing contract:
Title and Parties Involved
Start with a clear title, like an Independent Contractor Agreement.
Include the names, titles, and addresses of both the recipient (the company or client) and the contractor (freelancer).
Example:
"This Independent Contractor Agreement is by and between [Recipient's Name & Address] and [Contractor's Name & Address]."
Scope of Work
Define the specific services the contractor will provide.
Detail the tasks, deliverables, and any additional responsibilities.
Example:
"The Contractor agrees to create detailed quality work instructions, including templates and corrective actions for up to 25 items."
Performance Expectations
Clarify that the contractor will operate independently without direct supervision.
Mention any tools, resources, or laws the contractor must comply with.
Example:
"The Contractor will use their methods, resources, and equipment to fulfill the outlined services."
Term of the Agreement
Specify the contract's start and end date.
Include flexibility for extensions or early termination.
Example:
"This Agreement will remain effective from [Start Date] to [End Date] unless terminated earlier as per the termination clause."
Payment Terms
State the payment amount, frequency, and any milestones tied to payments.
Clarify if expenses are reimbursed and who is responsible for taxes.
Example:
"A payment of $35 per deliverable will be made to the contractor upon completion. All business expenses will be the contractor's responsibility."
Termination Clause
Detail how and when either party can terminate the Agreement.
Address pro-rated payment for incomplete work, if applicable.
Example:
"Either party may terminate the agreement with 14 days' notice, and the contractor will be compensated for work completed before termination."
Confidentiality and Intellectual Property
Protect sensitive information and specify ownership of deliverables.
Example:
"The Contractor agrees not to disclose confidential information and will return all materials upon termination."
General Provisions
Include clauses for severability, waiver, and governing laws to ensure legal compliance.
Example:
"The laws of [State] govern this Agreement. The remaining provisions will remain enforceable if any provision is deemed invalid."
Signatures
Provide space for both parties to sign and the Agreement's effective date.
Example:
"This Agreement is signed by [Recipient's Name/Title] and [Contractor's Name/Title] as of [Date]."
Good Luck!
Writing a contract may seem daunting initially, but with each one, you'll become more confident in defining and protecting your professional relationships. Remember that a well-drafted agreement is not just a legal document—it's a foundation for collaboration, respect, and shared success. Best of luck with your projects, and may your contracts lead to fruitful and fulfilling partnerships!
Don’t forget to check out my latest contract agreement between myself as the contractor and Erie Molded Packaging as my employee for a real time example:
