This is graphic design tip #39 from the post 101 Graphic Graphic Design Tips for Business Success

Terms In Writing A Contract

A proper contract should be used to protect both you and the client. A contract should never be one-sided and should never be worded with tricky sentences meant to confuse and ultimately take advantage of a situation. When writing your contract, think in terms of “Who? What? How? And When?”

Who?

Who are the parties in the contract? This one is a no brainer. Make sure to identify all parties that will be working on the project to ensure if any problems arise, everyone involved will be fairly represented.

What?

What services will you be providing to the client, and what will the terms of the work be? Are you providing a one-time design service, or will the client be retaining you for an extended period of time? What rights on your designs, if any, will you be giving to the client and when will this transfer happen? Be sure to specify details about what could cause termination of a contract, in the unfortunate case you and your client end up having “irreconcilable differences”.

How?

How much are you going to be paid? Are you going to be charging an hourly rate, or a flat rate per concept? How much of a down payment will you be asking? How will the client be paying you? By being specific about payment terms up front, you will avoid potentially uncomfortable conversations about money with your client later on.

When?

When are payments to be received? When the invoice goes out, how long after will your client have to complete payment? When will late fees, and/or interest start accruing on unpaid invoices? Don’t leave your well earned payments floating in collection limbo.

If you’re unsure of how to draft up a sound contract, invest in an attorney or legal service that will create your contract templates for you. Spending a few hundred dollars up front on such a service could save you from losing your money, and your mind, in the long run.