Key Sections of a Contract

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