The best way to put it is that a contract is a legally binding agreement created between two parties. It comes after the initial proposal has been shared with the freelancer or is at a point where they are sending invoices over. There are the steps that make-up a freelance agreement: Step 1: Names, Contact Information, And Dates The full names of both parties should appear at the beginning, and also throughout, any contract. Being precise prevents probable mix-ups with other people and companies. Moreover, the full contact information like physical address, email address, phone number and more should be included for each party as well. Finally, make it certain that your contract is dated both when you write it, and when it is signed by each party. Step 2: Your Role The proposal should give all the information you need in your contact here. You may start with the deliverables: it is what will drive your work but will also be reviewed first if anything goes wrong. It is also what should trigger the payments you will receive. Next, follow with your responsibilities: List all of the obligations required to complete the work that’s mentioned in the proposal, and nothing more. This way, if the client tries to get you to do something that’s out of your agreement, you can decline politely. Step 3: Payment Information Start by defining how you expect to be paid since getting paid by the hour may make you a little more money, but unless you use some sort of online tracking system to log your hours, the client will probably prefer that you get paid by the job. In that case, it is standard to receive a portion of the payment ahead and the rest when a job is done. Whichever method you use to get paid; you need to put it in writing so that there are no misunderstandings about it later on. Step 4: Deadlines Another disadvantage to being a freelancer is that it can be hard to focus since it is easy to get distracted. Without deadlines, freelancers will often lose focus and push projects further back, while clients get anxious as they wait longer for work to be turned in. This is not a healthy relationship. Breaking up a project into various milestone achievements, rather than having it all due at once, is generally the smart way to go. This way, the freelancer is less likely put themselves in a situation where they have a huge amount of work due in an impossibly short amount of time. And procrastination aside, milestones just make it easier to keep everything systematized, which should be a welcome benefit for both parties. Step 5: Ownership In most cases, clients are going to need the contract to grant them full rights to your works since the client is the one paying you to do the work. This is just the way these things work. However, sometimes you might be able to be credited for your work, even if you don’t own the rights to it. Credited works look great in your portfolio—but you should confirm with the client that they don’t have a problem with you placing work you did for them in your portfolio, before you go around parading it as one of your personal creations. Step 6: Confidential information You might come across confidential information like customer lists, business strategies, website stats while working on a project. The client will want the contract to include a clause that prohibit you from disclosing any of that confidential information. Step 7: Independent Contractor Terms There should be different expectations for your work as an independent contractor. A few of those differences: You don’t represent the client. They don’t represent you. The client won’t expect to provide you with the physical tools you need to complete a project. You won’t expect the client to manage your day-to-day schedule. And you will be liable for your own taxes, too. Step 8: Termination terms Eventually, every project comes to an end. Unless you are signing up for longstanding, ongoing work, it will probably make sense for you to set a final date by which, if all the work is not done yet, you will stop working and the client will pay you for all the work that has been completed so far.