What makes a freelance contract legally binding?
Technicalities, oral contracts, and magical words, oh my!
Blacks Law Definition
Blacks Law Dictionary defines a contract as “an agreement between two or more parties creating obligations that are enforceable or otherwise recognizable at law.”
In most situations you really just need three things:
- An offer from one party;
- Acceptance from another party; and
- Something of value from each party (what lawyers call “consideration”).
So if you offer to develop a website and your client agrees to pay you $5,000 then, alakazam!!! You have a legally binding contract.
Does it have to be in writing?
In most situations, your contract doesn’t have to be in writing.
But you are almost always better off it you do put it in writing (or at least an email). The main reason being that it is much easier to prove the terms of the agreement if there is some written evidence of those terms.
What words should I use in my contract?
In most situations, you can use plain english. In fact, plain english is better than fancy legalese which most people don’t understand anyway. (Lawyers use legalese for many reasons — habit, tradition, to look smart, to justify their legal bills, etc. — but they really don’t have to.)
The key is to be as clear and unambiguous as possible. The more details, the better.
Are there exceptions to the above?
Of course there are exceptions. This is “the law” after all.
Here are the two things to note:
- First, some contracts have to be in in writing and signed by the parties. This is intended to protect you from someone claiming you have an oral agreement regarding something very important like debts, marriage, land, etc. To learn more you can research your state’s Statute of Frauds.
- Second, in some legal documents (real estate deeds, for example) it is critical that you use very specific language (that often sounds very old fashioned and hard to understand). But for the most part, plain english will work for the bulk of your freelancer agreements.
What are your favorite tips and trips when dealing with freelance contracts?
Share them in the comments below. I’d love to hear your success (and horror) stories!
- Chris
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**Because I’m a lawyer, I must say this: This article is very general in nature and does not constitute legal advice. If you have legal questions you should speak with an attorney.
