Guide to Creating a B2B Contract

A freelance and business-to-business contract sets out the relationship between a business owner and client.

Knowing how to draft a contract is one of the most important skills a freelancer and entrepreneur must have – a contract protects both the business owner and the client when it is well-designed and used properly.

Paper prototype
Source: Depositphotos

Now, the best way to get your contracts in shape is to visit a legal professional. But that’s often an expense beyond the budget of a new freelancer or entrepreneur. The next best thing is to write your own contract.

Guide to Creating a B2B Contract

Things to be placed in a contract

  • Provide your information:

    • Your address, phone number, business registration number, email, etc. and then provide the same for the client. Make sure there’s place to sign and date the contract (both by you and the client) as contracts are not contracts without signing.
  • Be as detailed as you can:

    • What are you going to deliver to your clients? How long will it take? What is included and what is not ? Pay particular attention to items such as revisions – if you don’t say how many revisions you will make, you’re leaving yourself open to endless revisions. Define deliverables list clearly.
  • Cover scope creep:

    • Define how additional work will be handled if anything outside of the project specifics counts as additional work. Make it very clear that additional charges will be made whether it may be a new contract or an hourly based rates.
  • Detailed breakdown of your work:

    • You need a detailed breakdown of what you will be paid for possibly multiple milestones on big projects and when you will be paid. You should also charge a deposit and specify that and when it should be paid.
  • Include a kill fee:

    • Kill fee is an amount the client pays if they want to break the contract once it has begun. This kill fee should not be excessive but should compensate for any work done up to the point of cancellation and a week or two more on top.
  • Include how to pay:

    • PayPal, cheque, bank transfer, etc. What happens if the client doesn’t pay on time ? Charge a late fee or a percentage for every day late. And what happens if they don’t pay at all ? Hire debt collection agencies or Lawyers in this case.
  • Intellectual Property:

    • You need to specify how intellectual property is taken care of at the end of the contract. Are you assigning a license to the work? Or is the copyright transferred to the client? Will you need to use the work in your portfolio? If so, say so.
  • Specify the jurisdiction:

    • In most cases, you’ll want to specify your home country/state as the jurisdiction for contractual enforcement. Always consider the costs of enforcement before deciding on a jurisdiction.

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Aayushi Gajjar
Aayushi Gajjar

A curious mind exploring verticals of IT and Art. An Interaction Designer who loves designing interfaces and can paint literally anything! Breathing art for more than 3 years. Studied IT from Veer Narmad South Gujarat University, Surat, Gujarat, India 🇮🇳