LegalJune 28, 2026 · 5 min read

Freelance Contract: What to Include (And What to Skip)

You don't need a 10-page legal document to protect yourself as a freelancer. Here's exactly what your contract needs — and what you can leave out.

Most freelancers either use no contract at all (risky) or copy a 10-page template off the internet that's so dense their clients never read it (also risky). Here's what you actually need.

The 7 things your contract must cover

1. Scope of work

List exactly what you will deliver. Be specific: "Homepage, About page, and Contact page" not "website." The scope is what protects you when a client asks for a sixth revision on something you quoted two rounds for.

2. Deliverable format

How will you deliver the work? Source files or final only? Editable documents or locked PDFs? What file formats? A developer handing off code should specify repository access and documentation. A designer should specify whether layered files are included.

3. Timeline and milestones

When does each deliverable arrive? What happens if the client delays providing feedback? (Hint: the timeline shifts.) Make this explicit so you're not blamed for delays caused by the client's slow review.

4. Payment terms

Amount, deposit percentage, payment schedule, accepted methods, and what happens if payment is late. A late fee clause (e.g. 1.5% per month) is standard and rarely invoked — but it gives you recourse.

5. Revision policy

How many rounds are included? What counts as a revision vs. a new request? "Two rounds of revisions" means nothing if you don't define what a round is. One round = one consolidated set of feedback from the client, not multiple emails over three weeks.

6. IP ownership

Who owns the work? The standard: the client owns the final deliverable upon final payment. You retain ownership of the process, tools, and any proprietary methods or code libraries you bring to the project. Don't give away ownership before payment clears.

7. Kill fee / cancellation clause

If the client cancels mid-project, what do they owe? A standard kill fee is 25–50% of the remaining balance, depending on how far along the work is. Without this clause, you can do weeks of work and collect only your deposit.

What you can skip

You don't need force majeure clauses, arbitration agreements, governing law sections, or liquidated damages provisions for standard freelance work under $10,000. Those belong in enterprise contracts, not a web design or copywriting agreement.

You also don't need a lawyer to draft a basic freelance contract — though for projects over $20,000 or ongoing retainers, a one-time legal review is worth the cost.

Make it easy to sign

A contract that requires printing, signing, scanning, and emailing back adds friction that delays projects. Put your contract language directly in your proposal and let the client e-sign in one click. Penly.it includes built-in e-signature on every proposal — the signed contract is captured with timestamp, IP, and name at the moment of signing.

Start free on Penly.it — generate a complete proposal with your contract terms, e-signature, and deposit collection built in.

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