Most disputes between self-employed people and their clients are not about bad faith. They are about different memories of what was agreed. A written agreement, even a short one, replaces memory with a document both sides can read. This section covers proposals, contracts and the clauses that matter most for one-person businesses. It explains concepts in plain language; it is not legal advice, and for significant contracts or unusual risks a lawyer who knows your field and location is worth the cost.
Proposal first, contract second
A proposal sells the work: it shows you understand the client's problem and explains how you will solve it, what it will cost and how long it will take. A contract records the agreement once the client says yes. For small jobs, a single document can do both, with an acceptance line at the end. For larger work, a proposal followed by a separate agreement is clearer.
What an agreement should cover
Whatever its length, a working agreement should answer these questions:
- Who the parties are, with legal or business names.
- What you will deliver, in specific terms, and what is excluded.
- When work starts, key milestones and the delivery date.
- How much it costs, how and when payment is made, and any deposit.
- Changes: how extra work or scope changes are requested, priced and approved.
- Revisions: how many rounds are included.
- Ownership: who owns the finished work and when rights transfer, usually on full payment.
- Ending early: what happens if either side cancels, including payment for work done.
- Confidentiality, if the work involves sensitive information.
A good agreement is specific enough that a stranger reading it could tell whether the job was done.
Scope is where most trouble starts
Vague scope invites scope creep: small extra requests that add up to unpaid work. Writing scope well means listing deliverables, quantities and formats, stating what is not included, and defining what "done" looks like. The working-alone guide on scope of work goes through it step by step.
Payment terms that protect you
Payment terms are part of the contract, not an afterthought. A deposit before starting, milestone payments for longer projects, a clear due date for each invoice and a stated consequence for late payment, where lawful, all reduce the risk of working and not being paid. Clients generally accept clear terms when they see them before agreeing.
Templates: useful, but read them
Templates save time and remind you of clauses you might forget. They also contain clauses that may not suit your work or location, and they cannot know your specific risks. Read every clause, delete what does not apply, and adapt what remains. If a client sends their own contract, read it just as carefully, especially clauses about ownership, liability, indemnity, payment timing and termination. It is normal to ask for changes.
Signatures and records
Electronic signatures are widely used and convenient. Whatever method you use, keep a copy of the final agreed version, with any changes agreed by email, in the client's folder. When a dispute arises months later, that folder is your evidence.
When to get professional help
A lawyer is worth considering when the contract value is large, when a client's contract includes broad liability or indemnity clauses, when the work involves intellectual property of real value, or when you are setting up a standard agreement you will use for years. A one-time review of your own template can be money well spent.
How the guides in this section help
The guides explain individual clauses and situations in practical terms: writing a proposal, building a scope, handling change requests, setting deposit and cancellation terms, and dealing with a client contract you did not write. Each ends with tasks you can apply to your next agreement.
Guides in this section
- Independent contractor agreements: the clauses that protect a freelancer
What an independent contractor agreement should contain: scope, payment, ownership, confidentiality, termination, liability, and how the IRS views control.
- How to write a statement of work for a freelance project
How to write a statement of work: objectives, deliverables, exclusions, acceptance criteria, timeline, client duties, price and change handling.