When you’re running a business as a freelance service provider or coach, having a solid client contract isn’t just smart—it’s a necessity. It protects your business, sets clear expectations, and helps you avoid any awkward misunderstandings. Whether you’re working with a brand-new client or a long-time favourite, making sure your client contract covers the essentials is crucial to keeping things running smoothly.
In this post, we’ll walk through the seven essential clauses every Client Contract (sometimes called a Client Services Agreement) should have to protect you, your business, your time, and quite frankly, your sanity.
1. Scope of Services
The first and most important clause in your Client Services Agreement is the Scope of Services section. This outlines exactly what you are going to do for your client. Whether you're a coach offering one-on-one sessions, a graphic designer creating branding, or a virtual assistant managing someone’s inbox, this clause makes sure both parties are on the same page.
Why it matters: Without a clear description of the services you’re providing, clients might expect more than what you agreed to—or misunderstand what you’re actually offering. Remember, your the expert in your niche, and your client might not actually understand the nuances of what is and isn't part of what you are offering. Being clear from the start avoids scope creep (when clients ask for extra services beyond what was agreed upon).
Takeway: Be specific. If your package includes four coaching calls a month, state that. If it includes two rounds of revisions on a design project, make it clear.
2. Payment Terms
While I know you started your business because you wanted to help people by doing something you're great at, let's be real: getting paid is one of the top priorities in your business. That’s why your contract needs a Payment Terms clause that spells out how much your client owes you, when they owe it, and how they can pay you.Key details to include:
- The total cost of your services
- The payment schedule (e.g., 50% deposit upfront, final payment upon delivery)
- Accepted payment methods (PayPal, bank transfer, etc.)
- Late fees or penalties for missed payments (you can't charge these if they aren't in your contract!)
Why it matters: Clear payment terms ensure that both you and your client know when and how payments should be made, reducing the likelihood of late payments or disputes. It also gives you the ability to enforce late fees if payments don’t come through on time.
3. Cancellation & Refund Policy
We’ve all had clients who cancel at the last minute or decide they want to back out. The problem? It's likely you've already blocked off your calendar for them, and you're relying on that work. That’s why including a Cancellation and Refund Policy clause is essential to protect your time and income.This section should cover:
- How much notice a client needs to give if they want to cancel
- Whether they’re entitled to a refund (and if so, how much)
- Any non-refundable fees (e.g., deposits or retainers)
Why it matters: Without a clear policy, clients may think they can cancel whenever they want with no repercussions, leaving you without the income you planned for. This clause sets boundaries and protects your revenue.
4. Intellectual Property & Copyright
If you create content, designs, or other deliverables for your clients, including a copyright clause about intellectual property is a must. This clause explains who owns the work you create and what rights the client has to use it.Things to consider:
- Do you retain the rights to your work, allowing the client to use it under a license?
- Is the client purchasing full rights to the work?
- Will you still be able to use the work in your portfolio?
Why it matters: This protects the content or materials you’ve created from being misused or resold by the client. It ensures you’re compensated appropriately if they want more control over your intellectual property.
5. Confidentiality
When working with clients, especially in coaching or consulting, you’re often exposed to sensitive information. You also might be divulging your own trade secrets, you don't want used outside the scope of your working relationship. The Confidentiality clause ensures that both you and your client agree to keep each other’s information private.Include:
- What information is considered confidential
- How long the confidentiality agreement lasts (during and after the project)
- Any exceptions to confidentiality (like if you're required to disclose information by law)
Why it matters:Confidentiality clauses build trust between you and your client, making them feel secure in sharing sensitive information. It also prevents any legal issues if there’s a breach of privacy.
6. Dispute Resolution
No one wants to think about conflicts, but sometimes they happen. Having a Dispute Resolution clause in your Client Contract can make a world of difference if things go wrong. This clause outlines the steps you and your client will take to resolve any issues, such as mediation, arbitration, or small claims court.
Why it matters: This section can save you from expensive legal battles by encouraging both parties to work out disputes through a simpler, agreed-upon process. It also shows clients that you're serious about handling conflicts professionally and efficiently.
7. Termination Clause
While you don't want to think about ending a relationship, you'll be happy you have this clause if you need to. Every Client Services Agreement, no matter your niche, should include a Termination Clause. This sets out how either party can end the contract, in good times, and in bad.Important points to include:
- The conditions under which the contract can be terminated
- What happens to any work already completed or payments made if the contract is terminated early (including the retainer or deposit, if you collected one)
- Any final steps to wrap up the relationship (such as returning files or final payments)
Why it matters: This clause gives you and your client a roadmap to follow when things aren’t working out or if the project comes to a natural end. It ensures that everyone knows how to part ways cleanly and professionally.
Conclusion
When you’re running a business as a freelance service provider or coach, having a solid client contract is essential to not only legally protecting your business, but ensuring smooth client onboarding and relationships. Including these seven clauses—Scope of Services, Payment Terms, Cancellation & Refund Policy, Copyright, Confidentiality, Dispute Resolution, and Termination—will not only help set clear expectations with your clients, but ensure that your business is legally protected.Make sure your contracts are working for you so you can focus on what you do best: serving your clients.
If you need help crafting your own client services agreement, I've taken my 13+ years as a business lawyer and created client contract templates specifically designed for coaches, freelancers and online service providers in Canada and the US. All are easy to use, customizable and affordable.
By covering these essential clauses, your Client Contract will provide a solid foundation for your client relationships—one that protects you and gives your clients confidence in working with you.
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