How do I protect myself with contracts?
Always use a written contract, require a deposit, define scope precisely, include late fees, specify IP ownership, add a termination/kill fee clause, limit your liability with an indemnification cap, and require disputes to go through your home state's courts.
Contracts are your #1 legal protection. The 10 clauses that actually protect you:
1. Get it in writing — verbal agreements are nearly impossible to enforce. Always written, always signed.
2. Deposit — 25-50% upfront. Filters out tire-kickers and gives you leverage.
3. Precise scope — itemized deliverables, not vague descriptions. Reduces scope creep and disputes.
4. Late fees — 1.5%/month is standard. Encourages on-time payment, legal in most states.
5. Kill fee — what client pays if they cancel mid-project (typically deposit + work to date).
6. IP ownership clause — specify who owns the work product, when ownership transfers (usually on full payment), and what rights you keep (portfolio).
7. Limitation of liability — cap your damages at the contract value or a multiple thereof. Protects against runaway lawsuits.
8. Indemnification — client indemnifies you for their content, instructions, or third-party claims arising from their materials.
9. Force majeure — protects against events outside your control (illness, natural disaster).
10. Governing law + venue — disputes resolved in your state's courts (so you're not flying to defend yourself).
- Independent contractor status clause (avoids misclassification).
- Mediation-first dispute resolution.
- Attorney's fees clause (loser pays).
- Confidentiality (mutual).
- 'Entire agreement' clause (this contract supersedes prior discussions).
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