Free Checklist

5 Contract Clauses That Cost Freelancers the Most

Before you sign your next contract, run through this list. Each clause is one we see regularly — and each one has cost freelancers real money.

Red Flag #1

"Revisions until the client is satisfied"

Why it's dangerous

"Satisfied" is subjective. A client can request unlimited rounds of changes with no end date and no additional pay. You've essentially agreed to work for free until they decide to stop.

What to say instead

"Up to 2 rounds of revisions included; additional rounds billed at $X/hour."

Red Flag #2

"Payment due upon client's approval"

Why it's dangerous

The client controls the trigger. They can withhold "approval" indefinitely — meaning they can delay payment forever by simply not approving, even on work that's objectively complete.

What to say instead

"Payment due within 14 days of delivery. If no written objection is received within 5 business days, the work is deemed accepted."

Red Flag #3

IP assignment that includes your pre-existing work

Why it's dangerous

Broad IP clauses often say "all work product, including materials created prior to this agreement." That can transfer ownership of your templates, tools, and frameworks you've built over years — not just what you made for this client.

What to say instead

"IP assignment applies only to deliverables created specifically for this project. Freelancer retains all rights to pre-existing tools, code libraries, and templates."

Red Flag #4

Termination without cause — and no kill fee

Why it's dangerous

If a client can cancel anytime with 48 hours' notice and owes you nothing beyond hours logged, they can terminate after you've completed 90% of the project — and pay only for logged time, not the value of the finished work.

What to say instead

"If terminated without cause, client owes 25% of remaining contract value, due within 7 days."

Red Flag #5

One-sided indemnification

Why it's dangerous

Many contracts require you to indemnify (cover legal costs for) the client against "any and all claims arising from this agreement." That includes claims caused by the client's own actions or their other vendors.

What to say instead

"Freelancer indemnifies client only against claims arising directly from Freelancer's own negligence or breach of this agreement."

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ClauseGuard provides AI-generated analysis for informational purposes only. This is not legal advice. Always consult a qualified attorney before signing legally binding agreements.