5 Hidden Red Flags in Freelance Contracts

Freelancing offers freedom, but a bad contract can turn that freedom into a nightmare. Many clients download generic templates that favor them heavily. Here are the top 5 red flags to watch out for before you sign.

1. Unlimited Revisions (The "Satisfaction" Trap)

The Clause: "Contractor shall continue to make edits until Client is satisfied with the Deliverables."

The Risk: "Satisfaction" is subjective. If the client changes their mind ten times, you are legally obligated to work for free on those ten rounds of changes. This kills your hourly rate.

• The Fix: Explicitly limit revisions. "Price includes two (2) rounds of revisions. Additional revisions will be billed at the Contractor's standard hourly rate of $X."

2. Work for Hire (The IP Grab)

The Clause: "This is a Work Made For Hire. Client shall own all rights, title, and interest..."

The Risk: You lose everything. You can't put it in your portfolio. You can't reuse a snippet of code or a design element for another client. It basically treats you like an employee without the benefits.

3. Net 60 or Net 90 Payment Terms

The Clause: "Payment shall be made within ninety (90) days of receipt of undisputed invoice."

The Risk: You finish the work in January. You invoice in February. You don't see the money until May. Can your cash flow handle that? Probably not.

• Strategy: Negotiate hard for "Net 15" or "Net 30". If they refuse, ask for a 50% deposit upfront to mitigate the delay.

4. Non-Compete Clauses

The Clause: "Contractor shall not perform services for any competitor of Client for a period of 12 months."

The Risk: If you design websites for dentists, and you sign this, you can't work for any other dentist for a year. You've effectively just fired yourself from your own niche.

5. Uncapped Indemnification

The Clause: "Contractor agrees to indemnify Client against any and all claims, damages, and losses arising out of the work."

The Risk: If your code has a bug that causes the client to lose data, or your design accidentally infringes a copyright, you are personally on the hook for potentially millions of dollars.

Don't risk it. Upload your contract to our AI Legal Summarizer now and let us spot these clauses instantly.