Freelance Contracts 101: Clauses That Protect You When Clients Ghost

General information only, not legal advice. Have contracts reviewed by a qualified lawyer.

Freelancers lose tens of thousands of dollars every year to unpaid invoices, scope creep, and IP disputes — almost all preventable with a well-drafted contract signed before work begins.

The Seven Essential Clauses

1. Payment terms and late penalties

State your invoice schedule, payment due date (net 14 or net 30 maximum), and a late payment penalty (2-5% per month). The existence of a late payment clause is a stronger incentive than chasing invoices manually.

2. Scope definition

Define exactly what's included. Then add a change order clause: any work outside scope requires a written change order with agreed fees in advance.

3. Kill fee

If a client cancels mid-project, a kill fee (typically 25-50% of remaining fees) compensates you for the opportunity cost of holding their project in your schedule.

4. IP ownership

By default in most jurisdictions, creators own the work they produce. If you transfer ownership to the client, state it explicitly. If you want portfolio rights, state that too.

5. Dispute resolution

Specify governing law and resolution mechanism. Arbitration clauses are generally faster and cheaper than litigation.

6. Confidentiality

Mutual NDA provisions protect both parties. Without them, either party is technically free to discuss details publicly.

7. Right to terminate

Specify termination conditions and what happens to work in progress and payment in each scenario.