Freelance contract red flags
Client contracts are written by the client. These are the clauses that leave freelancers unpaid, overworked or liable for far more than the project is worth.
What to look for
- Payment terms of 60 to 90 days, or payment only "on client approval" with no deadline for approving.
- Unlimited revisions or a scope described as "as the client requires".
- IP transfers on signature instead of on full payment. Ownership should pass when you are paid.
- Uncapped liability and broad indemnities. Your liability should be capped, typically at the fees paid.
- Termination for convenience without paying for work done.
- Non-solicitation or exclusivity that stops you working with the client's competitors or contacts.
- No late-payment interest, and no right to pause work when invoices are overdue.
- Confidentiality that never ends or that bans you from showing the work in your portfolio.
Fixes to ask for
A deposit up front, payment within 14 to 30 days, a set number of revision rounds, IP passing on full payment, liability capped at the fees, and portfolio rights. The full review drafts the wording for each one.
Questions
Should IP transfer before I am paid?
Usually not. Ask for ownership to pass to the client when the final invoice is paid in full, with a licence to use the work until then.
What liability cap is normal for freelancers?
Commonly the total fees paid under the contract, excluding fraud and gross negligence. Unlimited liability is a serious red flag for a small business.