What is Contract?
A contract is a legally binding agreement between two or more parties that sets out the terms, obligations, and rights governing a business relationship or project. Freelancers use contracts to protect both themselves and their clients.
A contract is a legally binding agreement that defines the relationship between you and your client. In the UK, a contract can be written, verbal, or even implied by conduct — but a written contract is always preferable because it provides clear evidence of what was agreed.
Essential clauses in a freelance contract:
- Parties: Full names and addresses of both parties
- Scope of work: What you will deliver and by when
- Fees and payment terms: How much, when, and how you will be paid
- Intellectual property: Who owns the work product and when ownership transfers
- Confidentiality: Obligations to keep client information private
- Revisions and changes: How scope changes are handled
- Termination: How either party can end the agreement and notice required
- Liability: Limits on your liability for issues arising from the work
- Late payment: Interest and fees for overdue payments
Under UK law, freelancers have strong late payment rights. The Late Payment of Commercial Debts (Interest) Act 1998 allows you to charge 8% above the Bank of England base rate on late payments, plus a fixed compensation fee of £40-£100 depending on the debt size.
A contract does not need to be complex or written by a lawyer to be valid. A clear, plain-English document that both parties sign is effective and enforceable. For larger projects, investing in a solicitor-reviewed template is worthwhile.
Never start work without at least a basic written agreement. Even a signed proposal with terms can serve as a contract for smaller projects.
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Frequently Asked Questions
Do freelancers need a contract for every project?
It is strongly recommended. Even for small projects, a written contract protects you from scope creep, non-payment, and disputes. At minimum, get the scope, fee, and payment terms agreed in writing (even via email) before starting work.
Is a verbal agreement legally binding in the UK?
Yes, verbal agreements can be legally binding in the UK. However, they are very difficult to prove in a dispute. Always get agreements in writing — a signed document, email exchange, or accepted proposal all count as written evidence.
What should I do if a client refuses to sign a contract?
This is a red flag. At minimum, send an email summarising the agreed scope, price, and payment terms, and ask the client to confirm by reply. Their written confirmation creates a record that can function as a basic contract.
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