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Contractor agreement with circled IP and payment lines, sticky before you start

Freelance Contract Clauses to Review Before Signing

Review freelance contract clauses before signing: cap revisions, refuse bare Net 90, assign IP on payment, and walk if they will not.

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Key takeaway in 30 seconds

Freelance contract clauses to review before signing sit in five places: scope and revisions, payment and pause, IP and portfolio, indemnity and non-competes, then a sign-or-walk call. Cap rounds, reject bare Net 90, assign IP only on full payment, and cap liability at fees paid. Walk if they refuse pay timing or IP-on-payment.

The problem is not that you cannot read a contract. The problem is a 14-page “standard” PDF the night before kickoff. These are the freelance contract clauses to review before signing: revisions that never end, Net 90 with no deposit, IP that assigns on delivery, and uncapped indemnity. Freeze the packet — the exact file set that will be signed — then decide sign, redline, or walk before any hour is billed.

In August 2026, Lena — brand designer, solo, UK client plus US agency paper — is asked to sign by Friday so legal can close the PO. She Ctrl-Fs unlimited, Net, assign, and indemnify. Both are there. She needs counters for a comment thread tonight.

Surprising bit: a “work made for hire” label on a typical freelance logo, site, or code file often transfers nothing. US Copyright Office Circular 30 limits commissioned work-for-hire to nine categories plus a signed writing. Ownership moves on a present-tense assignment “upon full payment.”

Disclaimer: Checkory provides AI support, not legal advice. Consult a qualified lawyer for binding decisions.

How do you stop unlimited revisions from eating a fixed fee?

Treat “until the Client is satisfied” as unlimited. Cap two rounds on a fixed fee, define a round as one written batch, price extras as a change order, and set a 5–10 day deemed-acceptance window. Pair that with pause-on-nonpay so extra comments stop when the invoice stalls.

In practice this is one workflow, not four extras: cap → change order → deemed acceptance → pause-on-nonpay. AllSettled treats two rounds as the creative default. Briefance treats a round as one written batch in five business days and deems work accepted after ten silent days. Typical mistake: starting because “we can tidy revisions later.” For example, a third stakeholder in week three is a change order.

Keep a playbook — a one-page list of your default positions — so you are not inventing a counter at 23:00. Do: two-round cap, priced extras, deemed acceptance, pause if invoices age. Do not accept “reasonable revisions” on a fixed fee.

Contractor agreement with circled IP and payment lines
Circle payment, IP, and revisions before the PO.

What payment terms should you refuse before kickoff?

Refuse Net 90 with no deposit unless the fee is marked up and money is already in the bank. Ask for a 25–50 percent deposit on new clients, Net-14 or Net-30, late interest, and a written right to pause when invoices age.

Name the jurisdiction. In the UK, the Late Payment of Commercial Debts (Interest) Act 1998 still governs B2B late pay. IPSE notes you can claim 8 percent above Bank of England base plus a recovery fee even if the invoice is silent. Write it in anyway. The Commercial Payments Bill (May 2026) would add a 60-day maximum and mandatory 8 percent interest — it is not yet law. Do not negotiate as if that cap already exists.

If the form hangs off an MSA — a master services agreement — read that frame plus any NDA — a non-disclosure agreement — and any DPA — a data processing agreement — as one packet, including every exhibit — an attached schedule. California SB 988 (in force 1 January 2025) requires a written contract and pay by the date or within 30 days for a one-person contractor at or above $250.

Jurisdiction layer — 23 August 2026

PlaceIn force nowTonight
UK1998 Act: 8% + BoE base + fee. May 2026 Bill (60-day cap) is not law.Write the 1998 right in. Do not assume 60 days.
CaliforniaSB 988 from 2025-01-01: written contract; pay by date or 30 days; damages up to 2×.Written due date. Reject IP-for-invoice swaps.
NY / IllinoisNY FIF from 2024-08-28. IL FWPA after 2024-07-01 at ≥ $500 / 120 days.Use the NY model as a checklist. Do not paste it.

Keep NY DOL — Freelance Isn't Free and Illinois FWPA open while you redline. Named-jurisdiction rights, not a universal ban. Do: deposit, Net-14/30, interest, pause. Do not start on a handshake.

Until satisfied versus two-round cap, change-order extras, 5–10 day accept
Until satisfied versus two-round cap, change-order extras, 5–10 day accept

Who owns the work before the last invoice clears?

Default copyright stays with you until you assign it. Do not rely on a work-for-hire stamp. Pair any qualifying hire language with a present-tense assignment on full payment, keep background tools, and write a portfolio carve-out.

If IP assigns “on delivery,” the client can own unpaid files — the hidden rush in Lena’s Friday PDF. Fair counter: “upon full payment of all invoices for the deliverable.” Do: assign on payment; keep a portfolio right. Do not sign a blanket grab of tools on a $4k gig.

Refuse bare Net 90, 25–50 percent deposit, Net-14 or Net-30, pause when invoices age
Refuse bare Net 90, 25–50 percent deposit, Net-14 or Net-30, pause when invoices age

When should indemnity or a non-compete make you walk?

Walk or hard-redline when indemnity is uncapped and they will not cap it, or when a post-term non-compete locks you out after a small gig. Cap liability at fees paid. Narrow indemnity to your IP and your negligence — not the client’s use or claims you cannot control.

Treat an uncapped indemnify line as a High flag — an item scored high severity — and open the source clause. BeforeSigning flags the same costly cluster: unlimited revisions, IP grab, post-term non-compete, uncapped indemnity, pay past Net-30, weak kill fee. A 12–24 month lockout after a $4k job is not “standard.” Delete it or walk. Do: fees-paid cap and a kill fee.

Assign on full payment, keep background tools, portfolio carve-out, skip work-for-hire
Assign on full payment, keep background tools, portfolio carve-out, skip work-for-hire

Which red flags get a fair counter — and which mean walk?

Client paper is one-sided by default. Freelance contract red flags are markup jobs. Propose a fair swap. Walk only when they refuse pay timing plus pause, or IP-on-payment.

Red flag → fair counter → call

Red flagWhy it hurtsFair counterCall
Unlimited revisions / “until satisfied”Fixed fee becomes an open retainerTwo rounds; change orders; 10-day deemed accept; pauseRedline. Walk if no cap.
Net 60/90, no deposit, no pauseYou finance the client25–50% deposit; Net-14/30; interest; pauseWalk if they refuse timing + pause.
IP on delivery / WMFH onlyClient owns unpaid filesAssignment upon full paymentWalk if they refuse IP-on-payment.
No portfolio; tools swept inYou cannot show the workPortfolio carve-out + background-IP licenseRedline.
Uncapped indemnityPersonal liability on a small gigYour IP / negligence only; cap = fees paidRedline. Walk if they will not cap.
Post-term non-compete 12–24 monthsLockout after a $4k jobDelete it; narrow non-solicit only if neededWalk if they keep a broad ban.
Convenience terminate, no kill feeThey cancel; you ate the rampWork-to-date + stated % left; noticeRedline.

Sign, redline, or walk — how do you decide tonight?

Run the independent contractor agreement checklist as a markup job: packet → Ctrl-F → counters → sign/redline/walk. Success bar: mark every high-risk clause, write one counter-line, and decide before work starts. Walk if they refuse (a) pay timing plus pause or (b) IP-on-payment. Escalate a High flag you cannot close.

If you fix only three lines, Hustle Report’s 2026 checklist says fix acceptance, change orders, and pause-on-nonpay — then cap liability.

Markup before any hour is billed

1

Freeze the packet

PDF/DOCX, SOW, order form, exhibits. No handshake start.

2

Ctrl-F sweep

Search revision, satisfied, Net, assign, work for hire, indemnif, non-compete, terminate.

3

Rewrite scope

Named deliverables, two rounds, change orders, 5–10 day deemed accept.

4

Rewrite money

25–50% deposit on new clients, Net-14/30, interest, pause right. Reject bare Net 90.

5

Rewrite IP

Assign only upon full payment. Keep background tools and a portfolio right.

6

Cap risk

Liability = fees paid. Indemnity for your IP / negligence only. Delete post-term bans.

7

Add a kill fee

Symmetric notice. Work-to-date plus a stated percent of remaining fee.

8

Decide sign / redline / walk

Walk if they refuse pay timing + pause, or IP-on-payment. Optional first-pass — the machine extraction before a human reads every page — can flag the same lines.

Freeze the NDA the same way: NDA review checklist before signing. If the paper arrived as three PDFs, prepare the packet first.

Frequently asked questions

Is Net 90 normal for freelancers?
Treat it as a red flag. Accept Net 90 only if the fee is marked up and a deposit is in. Otherwise counter to Net-14/30 plus pause.
Who owns the work before payment?
Usually you, until a present-tense assignment fires. Do not rely on work-for-hire. Redline so ownership moves only on full payment.
What does an unlimited revisions clause mean?
The fixed fee is an open retainer. Counter with two rounds, a written batch, a change-order rate, a 5–10 day deemed-acceptance window, and a pause if invoices age.
Can I claim late-payment interest in the UK if the contract is silent?
Under the 1998 Act, 8% above Bank of England base plus a recovery fee can still apply to a qualifying B2B debt. Write the right in. The May 2026 Bill is not law yet.
When should I walk away from a contractor agreement?
Walk if they refuse pay timing plus a pause, or refuse IP-on-payment. Also walk if they keep uncapped indemnity or a broad post-term non-compete.

Flag the same lines on the PDF

Upload after the Ctrl-F sweep. You still apply the walk rule.

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Updated: August 27, 2026