For a document to be considered a legally binding contract, it must consist of an offer, consideration, and acceptance. A proposal can serve as the foundation for a contract, but it will generally only require a client’s signature, whereas a contract needs signatures from all involved parties.
A signed proposal may become a contract only if it contains signatures from each party and contractual language such as terms and conditions. However, it’s best to keep your contract separate from your proposal in case your client disagrees with your offer and requires a new document outlining the negotiated terms. If you need inspiration for your contract, we recommend our free contract PDF templates.