What is a Freelance Contracts?: Everything You Need to Know to Prepare It

What is a Freelance Contracts?: Everything You Need to Know to Prepare It

Although working as an independent brings with it numerous advantages, it is also true that, on many occasions, negative experiences are also part of this panorama, such as abuse by those who request a freelance job, and absence of payments, among others.

In this context, since working independently is an increasingly common aspect of society, having elements that protect against these unwanted experiences is essential. Therefore, the preparation of a freelance contract becomes a leading aspect when offering your services to any company.

Now, what is a freelance contract and how is it drawn up? These are aspects that commonly generate great doubts. Below, you will find the most relevant aspects of this topic and examples included so that you can prepare a freelance contract properly according to your services.

What is a freelance contract? 

In general, a contract is a kind of agreement that is established between a company and a worker, which indicates all the aspects that are included in the employment relationship. In the case of a freelance contract, the meaning is the same. The difference is that said the relationship has a determined duration according to the service requested by the contracting party.

The company hires a freelance worker intending to have him perform specific tasks, in exchange for monetary compensation. In this way, the freelance contract is carried out as a security support for both the freelance and the company, since both agree on the terms on which the work process will be developed.

It is necessary to make a freelance contract

Certainly, making a freelance contract is not mandatory. However, as mentioned, it is a kind of security support for both the company and the independent worker, since he will make all the points on which the employment relationship will be based clear.

Seen in this way, the freelance contract not only provides security. But it also denotes that it is a professional relationship, based on the seriousness, commitment, and responsibility of the parties involved, who establish the terms of their agreement previously.

Therefore, the best thing to do if you are an independent worker is that you always consider drawing up a freelance contract when they hire your services. This way you will avoid any unwanted experience and you will be able to provide greater security to the company for those who will carry out specific tasks.

Now, if your work as a freelancer is simply a hobby or simply not something you depend on financially, the preparation of the contract may not be in your interest, since it is not a priority.

What a freelance contract should include

Some elements can vary in this aspect. Depending on the activity you carry out as an independent worker or the company that hires you, the content of a freelance contract may vary. However, some elements are constant. For example:

Data of the contracting party and the contracted party

The identification of both the person hiring and the contracted party is an elemental aspect that must be included in any freelance contract. In this way, the parties that establish the labor agreement are clear. In any situation, it is established who must respond.

Aspects such as names (natural or legal), addresses, and emails, are some of the most relevant data that must be included.

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Scope of agreement

In this case, the general scope of the agreement must be established. That is the purpose of it, both from the perspective of the company and the freelance. In this way, both will be clear about their participation in the professional relationship they plan to establish. For example:

1. Scope of the agreement

1.1 The Freelancer and the Company enter into this Freelancer Agreement (the Agreement) in which the Freelancer agrees to perform all of their future services for the Company in accordance with the terms specified in this Agreement, including the Task Description.

1.2 This agreement will supersede any and all previous agreements signed between (Company) and the Freelancer.

1.3 The Freelancer performs the tasks as an independent contractor and there is no employer-employee partnership between the Parties. The Freelancer does not have the authority to enter into any agreement on behalf of the Company and the Freelancer will make no binding representations, warranties or undertakings on the Company.

1.4 As the performance of the Freelancer depends on the person…………….., the Freelancer has no right to assign the performance of the Services to another person in terms of this Agreement.

Duties or tasks to perform

Another elementary aspect of the freelance contract is the development of the duties or tasks for which the freelance was hired. In this regard, it is necessary to perfectly detail the jobs for which the independent worker was hired. Take a look at the following example below:

2. Duties

2.1 The Freelancer will perform the Services agreed in the Task Description in annex a herein in a professional manner without knowingly violating the rights of third parties.

2.2 In providing the services, the Freelancer will comply with the requirements of all applicable laws, including all applicable data protection regulations, non-compliance with which, individually or in the aggregate, will materially and adversely affect the Company.

2.3 The Freelancer guarantees to be the sole author of the tasks, which will be delivered exclusively to the company as the original work of the Freelancer and without plagiarism. In addition, the Freelancer guarantees that it will not incur any liability to third parties in the provision of the Services and that all necessary services will be used to complicate any relevant license to use.

Compensation

This part is also elementary. It deals with the aspects related to the payment of the services provided by the freelancer. Make sure that the total amount of your services, the method of payment, and the date on which it is agreed are reflected. All these aspects are for the greater safety of both. We leave you this example.

3. Compensation

3.1 As compensation for the services rendered, the Freelancer will receive compensation of USD (Amount) per written word and a minimum of USD (Amount) per article. Tasks will be arranged and agreed upon by the Freelancer and the Company as necessary.

3.2 The Freelancer is paid only for the actual words written, delivered and approved by the Company. Fees are paid according to invoices issued by Freelancer strictly according to the guidelines described in appendix B. On the 26th or every month (except national holidays, if it is the last banking day before), the company will make payments of the invoices sent to the property. Specifying resolved tasks. The possible tax consequences that may arise from the payment are the sole responsibility of the Freelancer. The Company will not be responsible for tax filing on behalf of the Freelancer.

3.3 Fees paid cover all expenses that the Freelancer may have in connection with the performance of the tasks, unless the parties have a written agreement stating otherwise.

Confidentiality agreement

In the case of some companies, this aspect is essential, since they ensure that the freelance worker keeps the terms of their professional relationship confidential. So if you want to provide greater security and protection to your client, you can include aspects related to the confidentiality agreement within the freelance contract.

4. Confidentiality

4.1 The Freelancer is fully aware that the Company’s business is based on intellectual property rights, confidential information and other trade secrets (collectively, Confidential Information). The Company is 100% dependent on keeping the information confidential as such. Therefore, Freelancer agrees and warrants that it will not disclose to any third party and will not use any confidential information, including under the terms of this Agreement, related to Company affairs for any purpose other than the provision of the Services, which may come to the knowledge of freelancers, authorized or not, during or in connection with this Agreement and the cooperation of the parties and which is not already in the public domain on a legal basis.

4.2 Confidential Information includes, but is not limited to, information disclosed directly or indirectly in writing, orally or visually relating to: business practices and strategies / any final, temporary, unfinished, “on hold” or rejected versions or drafts of the Services / corporate and marketing strategies / business developments and plans / sales reports / research results / client lists / business methods and processes / any technical information and know-how related to the business of the Company or the clients of the Company , including, but not limited to, inventions, designs, programs, techniques, database systems, proprietary coding, and software incl. source codes, hosting security details and procedures, formulas and ideas / business contacts and details of contracts with them / personal data of employees or clients / and any documents marked as “confidential”, to any third party, other than the bona fide professional of the Freelancer advisers who must be subject to a similar trusted professional duty. The Freelancer acknowledges that confidential information also represents trade secrets in accordance with section 19 of the Danish Marketing Practices Act.

Termination of agreement 

The termination of the agreement is nothing more than indicated within the contract when the culmination of the professional relationship between the company and the freelancer is scheduled. In addition, the reasons why this could be finished earlier than stipulated are indicated.

5. Termination of Agreement

5.1 Both parties may terminate the Agreement for any reason by giving 20 business days written notice of termination.

5.2 Both parties may terminate the contract with immediate effect in the event of a material breach of the Agreement by the other Party.

5.3 As of the effective date of termination of this Agreement, all legal obligations, rights and obligations arising out of this Agreement will terminate, except clauses 4, 6 and 7.

5.4 If this Agreement is terminated, regardless of the reason, the Freelancer is not entitled to any compensation, including compensation for loss of client base, goodwill, etc.

5.5 In case of termination of the Agreement, regardless of the reason, the Freelancer will return or deliver to BC all hardware, software, etc., as well as all documents, including confidential information, cf. to section 4, related to cooperation with BC. The Freelancer has no right to retain any of these.

Others

In some cases, it is also important to include the right to intellectual property in the agreement. This is according to the type of work that the freelance develops. In this way, the company will guarantee the rights for the work carried out, which also ensures the originality and seriousness of your work as a professional.

6. Intellectual property rights

6.1 By executing this Agreement, Freelancer transfers to Company any and all rights to works produced in connection with the provision of the Services, including but not limited to articles, code, documentation and other works that the Freelancer produces in their work for the Company.

6.2 Clause 6.1. applies to any intellectual property rights (intellectual property rights) including, but not limited to, know-how, methods, software, source codes and any rights protected by the Danish Copyright Act, rights protected under the Marketing Practice Act, the Trademark Law or any other applicable act or order that protects intellectual property and related rights, which the Freelancer creates or develops, alone or in collaboration with others, according to the term of the agreement, will pass, and will pass, directly and exclusively to the Company without compensation other than fees in accordance with section. 3. The Company’s acquisition of full and exclusive ownership of intellectual property rights occurs without prior notice. This Agreement shall be deemed final proof of the transfer to Company of exclusive ownership of the intellectual property rights for any purpose anywhere, including registration, exchange, transfer to third parties, and any existing or future exploitation. § 56 of the Danish Copyright Act § 56 is exempted

6.3 In the event that Freelancer integrates any work previously created by Freelancer into any work produced for the provision of the Services, Freelancer will grant to, and Company is granted, a perpetual, worldwide, royalty-free license, irrevocable license to exploit the incorporated items, including, without limitation, all copyrights, patents, designs, trade secrets, trademarks, or other intellectual property rights, in connection with the Work Product in any manner the Company deems appropriate .

6.4 Freelancer warrants that it will not incorporate into any Service any materials etc. that infringes the intellectual property rights of a third party.

Finally, the freelance contract must be duly signed by both parties as a sign of agreement between them. To later start the employment relationship formally.

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It is worth noting that these elements may vary according to various criteria, such as the tasks you perform or the company that hires you. However, in general, these elements may be the most transcendental that cannot and should not be missing from your freelance contract.

As you will see, a freelance contract ends up being a beneficial element both for you and for those who hire your services. Therefore, taking into account its preparation will be a key aspect in the successful development of your work as an independent.

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