What if, for example, your client files for bankruptcy when he owed you 10,000 $US? If you have a contract that clearly defines the terms of your agreement (and the exact amount due for the services provided), you are much more likely to recover at least some of what is owed to you during the legal proceedings. If you only have an email thread or handshake agreement, it`s not that robust. A freelance contract is an agreement between you and your clients that outlines everything you and your client need to know about the job. This includes a legal document that, if necessary, can be used in court. We freelancers, like everyone else, have bills to pay. For simplicity, this section of the freelance contract also defines the terms “contracting entities” and “contractors”, so that both parties are designated as such for the remainder of the contract. Many freelancers are reluctant to design their own contracts for liberal activities, either because they think they can`t master the legal language or because they`re afraid of forgetting the “fine print.” The liberal professions often work in skilled professions, such as web designers, journalists, photographers, craftsmen or even actors. Your babysitter, dog hiker, or even the neighborhood kid who mows your lawn on a weekend, is technically a freelancer. Depending on the type of work you do as a freelancer, it`s better to get paid after completed projects than per hour of work. But sometimes it`s not easy to predict how long the job might take.
In these cases, it might be more interesting to be paid by the hour.