Freelancing

10 Contract Red Flags Every Freelancer Should Know

January 20, 2025
6 min read

Thomas Rivera

Contract Attorney

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Not all contracts are created equal. This checklist helps freelancers identify potentially problematic clauses before signing on the dotted line.

1. Vague Scope of Work

Beware of contracts with poorly defined deliverables or open-ended requirements that could lead to scope creep.

2. Unlimited Revisions

Contracts that don't limit revision rounds can lead to never-ending projects and diminishing profitability.

3. Payment Upon Satisfaction

Subjective payment triggers like "client satisfaction" create uncertainty and risk of non-payment.

4. Excessive Indemnification

Be cautious of clauses that make you liable for damages far exceeding your compensation.

5. Work for Hire Without Fair Compensation

Ensure you're properly compensated if you're transferring all intellectual property rights.

6. Non-Competes That Are Too Broad

Overly restrictive non-compete clauses can severely limit your ability to work with other clients.

7. Unilateral Contract Changes

Watch for language allowing the client to modify terms without your consent.

8. No Kill Fee

Contracts should include compensation if the client cancels the project after work has begun.

9. Unclear Payment Terms

Vague payment schedules or missing details about payment methods can lead to delays.

10. Jurisdiction in Client's Location

This could force you to travel or hire representation in another state or country if disputes arise.