Freelancer Contract Guide: What to Include & Free Template

Freelancing lets you choose your clients, your projects, and your schedule. But that freedom comes with risks. Payments may get delayed. "Quick edits" can quietly expand into full projects. You may have to struggle with vague expectations. And sometimes, clients simply disappear after receiving the work.

This is why we cannot overstate the importance of having a solid contract in place. Read this guide to know everything you should include in a freelance contract in India, along with a free template you can use right away.

A freelancer contract is a written agreement between you and a client that lays out the basics of a project before. It explains what you’re expected to deliver, how much you’ll be paid, and when the work is due. It also covers the legalities that protect both you and the client if anything goes wrong.

A freelancer contract can be of different forms, such as:

• A formal document with terms and deliverables
• Email conversations that clearly outline the agreement
• Verbal discussions on scope, payments, and deadlines
• Platform-based agreements

Make sure to have everything written and signed in one place.

Freelancer contracts are important because they keep everything clear from day one. They outline the work, the process, and each person’s duties before anything begins.

1. Clear expectations: A freelancer contract defines the scope, timelines, and deliverables, so there is no confusion later.

2. Legal protection: The contract is a binding agreement under the Indian Contract Act 1872. This means it can be used as proof in case of a dispute or breach.

3. Defined payment terms: A freelancer contract defines how much you'll be paid, when the payment is due, and what happens if payments are delayed.

4. Project structure: The contract includes milestones and deadlines that help both sides track progress.

5. Liability clarity: A contract clearly outlines each party’s responsibilities and limits your liability in case of an issue.

6. Professionalism: A well-written contract shows clients you take your work seriously and builds trust.

A freelancer contract should include all the key parts of a project. This covers contact details, project scope, payment details, timelines, and more.

1. Contact details

Start your contract with the basic contact details. For example, names, job titles, company names (if any), and how each person can be reached. This keeps all contact details handy.

2. Project scope

This explains the tasks you’ll handle, the deliverables, and deadlines. Being specific helps prevent scope creep, where extra work slips in without extra pay.

3. Payment terms

Include payment details like:

• The total project fee
• Pricing type
• Payment methods (UPI/bank transfer, card, etc.)
• Advance payment
• Payment due date after invoicing
• Late fees

4. Timelines

Document the project start date, milestones, and the final deadline. Also, include provisions for revisions, extensions or delays.

5. Intellectual Property (IP) rights

Your contract should outline ownership of the work, when it changes hands, and how it can be used. It’s also good to mention who gets credit. Check with a lawyer if needed.

6. Changes and revisions

Mention how many revisions are included and the fee for extra edits beyond the agreed limit.

7. Termination clause

Finally, define when either party can end the contract. Outline any penalties for early termination and whether partial work will be paid for.

Freelancer contracts in India should cover some legal basics. Make sure to have an NDA, follow income tax and GST rules, and include a method for dispute resolution.

1. Non-Disclosure Agreement (NDA)

An NDA keeps private information secure. For example, your clients may share confidential plans, data, code, or upcoming projects. You may also share ideas that you want protected. An NDA makes sure neither side can share this information without permission. It also serves as proof if a confidentiality dispute ever reaches legal action.

2. Income Tax and GST

Freelancers in India need to follow basic tax rules. For example, you need a PAN to file income tax. And if your yearly income crosses the taxable limit, you need to file returns. Many freelancers file ITR-4 under the presumptive taxation scheme.

A GSTIN is mandatory if your turnover crosses Rs. 20 lakhs (Rs. 10 lakhs in some states). Some clients also deduct TDS, so keeping your tax details ready is important. GST registration lets you work with companies that need GST-compliant vendors.

3. Dispute resolution

Contracts can’t prevent every dispute. This is why it is important to include:

• An arbitration clause to settle disputes outside court.
• A jurisdiction clause to decide which laws apply.
• An option for mediation if both sides prefer a simpler, discussion-based approach.

Your contract should explain your payment plan. Choose from hourly or daily billing, a fixed price, or a retainer arrangement for regular work.

1. Hourly or daily billing

While this pricing approach works, billing by the hour doesn’t always show the real value of your work. For instance, a task might only take 10 minutes, but it could be built on years of expertise. So if a client really wants to go with time-based rates, it’s better to bill daily. Your daily rate doesn't have to follow an eight-hour structure. You can adjust it depending on the project.

2. Fixed-price projects

This is a popular option because the price is tied to the value you deliver, not the time you spend. You agree on the deliverables and set one clear fee for the entire project.

3. Retainer model

A retainer works pretty well for ongoing projects. You’re paid the same amount regularly, which makes budgeting easier and helps you manage your time efficiently.

Creating a freelancer contract isn’t complicated. Start with the basic information, outline the work, list the payment terms, and include the legal sections.

Step 1: Start with the basics

Mention what the agreement is for. Add the date and your and the client's names. This section sets the foundation, so keep it simple and formal.

Step 2: Describe the services

Write exactly what work you’ll do. You can also break the project into small sections and list every deliverable. Add dates or timelines wherever needed. When the scope is written clearly, the client knows exactly what you will deliver and when.

Step 3: Cover payment details

This is where you explain the price and the timing of payments. Explain to the client how they can pay you and mention if there might be any extra costs. The simpler and clearer this part is, the easier things will go between you.

Step 4: Add the legal sections

Include ownership rights, dispute resolution, and how either party can end the contract. If anything feels unclear, ask a lawyer to review it so everything is accurate.

[Your Name/Business Name] <> [Client Company]

Contractor Agreement

Overview of Work

[Freelancer Name] ("Contractor") will provide services to [Client/Brand Name] ("Client") as described in the Terms and Conditions.

Description of Services

Freelancer will:

[Insert services provided]

Pricing/Rates

[Insert prices discussed – include rates for extra changes or revisions]

Payment Terms/Schedule

30% upfront, and the balance after project completion

Payable by cheque, bank transfer, Xflow, Wise, or PayPal

Contract Start Date

[Insert start date]

Terms and Conditions

Client will pay [$X,XXX] (mention if hourly, monthly, or full-project) through the agreed payment method. Payments must be made no later than the agreed date.

Contractor will deliver the following:

• [Deliverable 1 – details and due date]
• [Deliverable 2 – details and due date]
• [Deliverable 3 – details and due date]

Scope of Project

Contractor will work until the engagement ends as agreed.

Legal

The contractor cannot guarantee error-free work and is not responsible for losses or damages that may arise. If a part of the contract becomes invalid, the rest will still apply.

Copyright

Client owns all work created. Contractor may use samples in their portfolio only with the client's approval.

Termination

Either party may end the contract with [XX days] written notice.

The initial 30% deposit is non-refundable.

Signatures

Client Signature:

Name & Title:

Date:

Contractor Signature:

Name:

Date:

Negotiating rates gets easier when you know your value and the market. How? By researching the market, understanding your value, setting your MAR, and avoiding discounts.

1. Prepare well

Before you jump into numbers, understand what your work is really worth. When you know the value you bring to the table, it’s easier to explain your rates. It also helps you stay firm if a client questions them.

2. Negotiate on facts

When you negotiate, stick to facts instead of opinions. Give examples, explain how you work, and clearly show why certain steps or hours are needed. Evidence makes your reasoning easier for clients to understand.

3. See negotiations as collaborations

Negotiations are not a conflict. So, treat them like a discussion. Listen carefully and ask for clarification when needed. Remember, the goal is to understand the client and find a middle ground.

4. Know your non-negotiables

Sometimes, a client won’t respect your boundaries. If their demands affect your money or your mental space, it’s okay to step back. Protecting yourself is an important part of freelancing.

Even small oversights in a contract can create big issues. For example, not having an e-sign option, leaving out payment details, or not getting everything in writing.

1. Sharing a contract without an e-signature option

Many projects are handled online now. If your contract can’t be signed digitally, everything gets delayed. Make sure both you and the client can review and sign the contract easily through an online option.

2. Leaving out key service or payment details

Not including clear rates, payment dates, or deliverables can cause problems later. Make sure every number, timeline, and task is written clearly and up to date before sending your contract.

3. Not documenting agreements

Anything you discuss with a client should be written into the contract - deadlines, deliverables, responsibilities, etc. Add extra pages or supporting notes if needed. Include anything that protects you if the project changes.

A freelancer contract protects your work and avoids confusion. It sets the project scope, deadlines, and payment terms, and includes legal clauses to keep both sides covered.

But for Indian freelancers working with overseas clients, receiving payments can sometimes be tricky. With payment platforms like Xflow, you can collect payments effortlessly for the export of services. Clients can pay via local bank transfers, which are fast, reliable, and cost-effective.

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