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Key Sections of a Contract

2:20 with Pasan Premaratne

While a comprehensive contract that covers every possible situation may be difficult to come up with, there are certain scenarios you need to be prepared for. Let’s see how we can break down the contract into specific sections.

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    Okay, so let's take a look at some of the key sections in a contract. 0:00
    We have already covered one of the important sections—the scope of the project. 0:04
    This part of the project covers, in detail, the services you will be performing for the client. 0:08
    Usually before you come to the point where you sign a contract with a client, 0:13
    you will have already created a project proposal. 0:17
    If you forgot how to write a proposal, feel free to check that video out. 0:20
    If they have a proposal ready, most freelancers prefer to reference 0:24
    the written project proposal in the contract with terms such as, 0:28
    "The project will be built according to the specifications detailed in the proposal, signed and dated month, day, and year." 0:32
    In some occasions, there may not have been a separate written proposal, 0:40
    but scope agreed in some other form of communication. 0:44
    In such cases, you can formalize this scope and present it in the contract 0:47
    or reference this prior communication. 0:51
    "Specifications discussed and mutually agreed upon during the meeting on month, day, and year" is an example. 0:53
    Contracts are legal documents and are governed by the laws of the locality you are in. 1:00
    Make sure what forms a binding contract in your area before you put it on paper. 1:05
    In certain regions or countries, referencing an oral agreement in a meeting 1:10
    may not form a binding contract and you would have to present a formalized scope, which the client signs off on. 1:14
    Check the laws in your area for all your contractual needs. 1:21
    Another thing we would have already covered at least partially is the cost in some basic payment terms. 1:25
    Along with a project proposal, you will almost always submit a quote. 1:31
    Now, this will include the detailed monetary cost in some basic terms, 1:35
    but it's usually not enough to protect yourself thoroughly. 1:38
    The combination of a project proposal and quote, a common starting point in the industry, 1:42
    forms what can be called a Letter of Agreement or Engagement. 1:47
    Letter of agreement are great starting points for a project, 1:51
    but usually acquire a terms and conditions document with provisions to protect you. 1:54
    So, let's go back to our checklist of what a contract should have— 1:59
    project specifications or scope—we've got that covered in our project proposal, 2:03
    we're just going to reference it in our contract; 2:07
    terms and conditions regarding payment; 2:10
    and then copyright protections and limitations on the use of work and other legal stuff. 2:13
    Let's tackle payments next. 2:18

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