5 Key Clauses Every Freelance Contract Must Include

Working as a freelancer offers freedom and flexibility — but it also comes with the responsibility of managing your business relationships independently. One of the most important aspects of this responsibility is having a solid, written contract with every client. Many freelancers underestimate the power of the written word and work based on verbal agreements, which often lead to misunderstandings, unpaid invoices, and even legal disputes.

Under Macedonian law, the most common legal form for freelance work is the Contract for Work (Договор за дело), regulated by the Law on Obligations (ЗОО). This contract is your first line of defense and your best tool for setting clear expectations. A well-drafted contract is not just a formality — it’s the foundation of a professional and successful client relationship.

Below are five key clauses that every freelance contract should include, along with an explanation of their legal importance under applicable Macedonian laws.

1. Subject of the Contract: Clearly Defining the Freelance Work

This is the heart of your contract. It’s essential to describe the work you’ll perform as precisely as possible. Vague terms such as “website creation” or “content writing” leave too much room for disagreement.

What to include:

• Specific scope of work (Scope of Work): Clearly describe all tasks, deliverables, project phases, and revisions. For example, instead of saying “logo design,” specify: “Creation of three logo concepts, with two rounds of revisions for the selected concept. Final delivery includes vector files (.ai, .eps) and image files (.png, .jpg) in multiple sizes.”

• Exclusions: Clearly state what is not included in the agreed price to avoid “scope creep” — when the client requests extra work without additional payment.

Why this matters ?

Under the Law on Obligations, the contractor is obliged to perform a “specific” job. The word “specific” is crucial — the clearer the work is defined, the lower the risk of dispute. The law also requires you to perform the work as agreed. Without a clear description, it’s hard to prove what was actually agreed upon.

2. Copyright and Intellectual Property: Who Owns the Work?

For creative professionals — designers, programmers, writers, photographers — this clause may be the most important. It determines who owns the rights to the work once it’s completed and paid for. Does the client gain full ownership, or only a license to use it?

What to include:

• Transfer of rights: Specify when and which rights are transferred to the client. Usually, economic (material) rights are transferred only after full payment.

• Exclusive vs. non-exclusive transfer:

  • Exclusive transfer means only the client can use the work, and you (the author) are excluded from using it further.

  • Non-exclusive transfer allows the client to use the work, but you retain the right to use or license it to others.

• Portfolio rights: Even if you transfer all rights, reserve the right to use the work in your portfolio for self-promotion.

Why this matters ?

The Copyright and Related Rights Law (ЗАПСП) is clear: the transfer of economic rights must be in written form, otherwise it has no legal effect. This means that even if the client pays, they don’t legally own the work without a written agreement. Article 70 of the law distinguishes between exclusive and non-exclusive transfers, allowing you to define the exact scope of rights you’re granting. Also, note that moral rights — such as the right to be recognized as the author — cannot be transferred.

3. Compensation and Payment Terms: How, When, and How Much

Clear financial terms are essential to avoid the most common freelance issues — late or missing payments.

What to include:

• Total amount: Specify the price for the service. If you charge hourly, state your hourly rate and the estimated total hours.

• Payment schedule: Define whether an advance (e.g. 30–50%) is paid upfront, whether payments are made per project phase, or upon completion. For larger projects, phase-based payments are best.

• Payment method: Bank transfer, PayPal, etc.

• Payment deadlines: State the deadline for invoice payment (e.g. 8, 15, or 30 days).

• Late payment consequences: You may include a clause on late payment interest.

Why this matters ?

The client’s obligation to pay is an essential element of a contract for work. The Law on Obligations provides that if the fee is not determined, the court will decide based on the value and customary rates. To avoid litigation, always define compensation precisely. Also, by law, the client doesn’t have to pay until they review and approve the work — unless agreed otherwise. This is why it’s crucial to negotiate advance or phased payments.

4. Deadlines and Delivery: Setting Clear Timeframes

Without clear deadlines, projects can drag on indefinitely, frustrating both parties.

What to include:

• Final deadline: The date when the final deliverable must be completed.

• Milestone deadlines: For complex projects, set deadlines for each stage (e.g. draft delivery, client feedback, final version).

• Client’s responsibility: State that deadlines depend on timely client cooperation (e.g. providing materials or feedback).

• Delivery method: How the work will be delivered (email, cloud service, etc.).

Why this matters ?

The contractor must perform the work within the “agreed time,” or, if not agreed, within a “reasonable time.” To avoid subjective interpretation of “reasonable,” always specify exact deadlines. The law also provides that you’re not liable for delays caused by the client’s behavior.

5. Termination Clause: An Exit Plan

No one signs a contract expecting to end it, but it’s important to plan for when cooperation doesn’t go as expected. This clause defines a fair and clear exit procedure.

What to include:

• Grounds for termination: Under what circumstances either party may terminate (e.g. breach of deadlines, failure to fulfill obligations, non-payment).

• Notice period: The time between notice of termination and its effective date.

• Financial consequences: What happens to the work completed and payments made? Usually, the client pays for all work performed up to termination.

Why this matters ?

The Law on Obligations regulates termination scenarios. Article 627 allows the client to terminate if the contractor doesn’t comply and fails to correct issues within a set deadline. Article 648 gives the client the right to terminate at any time, but they must pay the contractor the agreed fee, minus the expenses saved. By defining termination terms in advance, you can ensure fair handling of such cases without relying solely on general legal provisions.

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Conclusion

Investing time in a detailed, legally sound freelance contract is one of the smartest business decisions you can make. It’s not just a dispute-resolution tool — it’s a prevention mechanism. Clearly defined obligations, rights, and expectations build trust and lay the foundation for professional, long-term collaboration. Don’t leave room for assumptions — protect your work.