ESSENTIALS OF FREELANCING AGREEMENT
Drafting Agreement has become easy these days with all the help available through various resources, especially Internet. As a Freelancer these are the few essentials which must be present in the Agreement so that you do not suffer at any stage. While drafting one should keep in mind all the below-mentioned points. Quote the Charges: Specify whether you charge by hour or by complete project. This prevents from your payment being withhold later. In case you charge on hourly basis add the minimum and maximum work-hour clause which will be beneficial for both the parties. Payment Schedule: It refers to when the Client is supposed to make payments-point of time and the number of installments with the percentage of payment for each. You may choose from the options 2 installments like 50-50 or of 3 installments like 50-25-25 or 40-40-20. Timings as first installment upfront, second with the first draft and last after delivering the finished draft. The next point is to make the mode of payment clear i.e. direct transfer or via Cheque.
Solitary Contact: In order to avoid all the confusion and double-work make sure need to report to a single person. This means that the feedback and editing has to go through this one person. Where there is more than one person in charge of this, it will become very difficult to satisfy all.
Compensation Fee Clause: This clause saves you from being unpaid in case the project gets cancelled and you have already started working on it. You can ask for compensation accordingly for the time and effort put into the project which could have been utilized on some other project. You will need to mention the % of the amount you would charge in this case.
Open for free Revisions and Rewrites: Quoting the number of free revisions will save you from revising or rewriting the draft numerous times in case your client seems to be difficult person to satisfy in terms of work. Also the client would try and point out all the requirements to be revised in free revisions rather than pay for the same. Normally 2 free revisions can be offered and maximum 3.
Payment for Additional requirements: It happens that in good terms we start adding content to the draft which is out of scope on the request of the Client, thinking that it will not take so much time. But what if this starts happening every now and then. In that case it is essential that we have added this clause, which will get us paid for any work done out of scope.
Reserving Copyrights till the final payment is released:
This works in favour of both the parties. The Client cannot run away without paying for the work and publishing it and the freelancer cannot sell the same content to any other client. As soon as the full payment is made to the freelancer, the copyrights are bought by him.
Here is the Deadline: This factor helps you to streamline the other projects that you wish to take up in future. A vague deadline can lead to a big problem for both the
parties at some point of time. Therefore, pen down the deadline for the project on which you and your client agree upon.
Link for the format: https://www.thebalance.com/sample-contract-a-letterof-agreement-1360549
CONSEQUENCES OF BREACHING A CONTRACT:
In case any of the party to this Agreement does not perform his obligations, or expressly refuses to perform the contract, this will be termed as Breach of Contract. The Party refusing to perform his obligations is the defaulting party and the other one is the aggrieved party.
Apart from once reputation being injured, it is for sure that the aggrieved party would have all the rights to sue the defaulting party in court of law. This will also cause a delay and loss to the aggrieved party in terms of work/money till the suit is decided in the court.
REMEDIES FOR THE BREACH OF CONTRACT:
In case of Breach of Contract, the following remedies are available to the aggrieved party (freelancer or client)
1.Specific performance of Contract: This remedy is brought into picture when the monetary damages are inadequate or won't provide the aggrieved party with adequate compensation for the breach. The parties are compelled to stick to the agreement and perform to what they had agreed in the agreement. As per this remedy, the court forces the defendant to perform the specific contract terms that have not been performed or to refrain from engaging in some activity that is prohibited by the contract.
2.Claim for Damages: The aggrieved party can claim for liquidated damages under this remedy. The term ‘Damages´ means compensation in terms of money for the loss suffered by the injured party. Here there is a need to identify the ‘remoteness of damage’ and ‘measure of damages’. Section 73 and 74 of Indian Contract Act 1872 deal with providing compensation to the aggrieved party in detail.
3.Injunction: It is a remedy that prohibits the defaulting party from a particular act. There are different categories of Injunction like Temporary, Permanent, Preliminary etc. which can provide relief to the aggrieved party in this case.