Freelancing without a contract? Here’s why that’s risky

When freelancer Sunday Steinkirchner agreed to take on an appraisal job, she could never have imagined what would unfold.

She spent a few days on-site at the client’s house, wrapped things up at home, sent the appraisal and invoiced. Job done.

But days passed and the payment never came.

Sunday followed up. Multiple calls and emails. But still nothing. Then one day it hit her: I might never get paid for this job.

Frustrated but not ready to let it slide, Sunday shared her story with Forbes.

The story blew up and Sunday was flooded with messages from other freelancers in the same boat. People who’d been ghosted for $50, $5,000, even $15,000.

Turns out, her story wasn’t rare. It was just one of many. In fact, more than 71% of freelancers have experienced difficulties in getting paid by clients.

What’s the lesson here?

Don’t leave your payments to chance. Without a clear, written agreement in place, freelancers are relying on trust, and trust doesn’t pay the bills.

In this article, we’ll be covering what freelancers and sole traders need to know to protect themselves: contracts, clauses, legal basics and how to make sure you get paid on time.

Common legal headaches freelancers face without proper contracts

Some clients think it’s acceptable to take advantage of freelancers.

They know you’re not a big agency, so they assume they can push boundaries, delay payments or disappear altogether.

And without a contract in place, they often can.

Here are the most common legal headaches freelancers run into:

• Clients ghosting after the work’s done
• Endless edits, extra tasks and shifting expectations (scope creep)
• Confusion over who actually owns the work
• Late payments or zero clarity around when you’ll get paid
• Projects being cancelled last-minute with no compensation

The good news is, with the right contract written up, you can protect yourself from cunning clients.

A solid contract sets the rules before the work begins, so everyone’s on the same page about what’s being delivered, when it’s due and how much it costs.

It’s not just about getting paid (although that’s a big one). It also gives you something to point to when clients start shifting the goalposts or asking for “one more thing”.

Think of it as a safety net. If things go smoothly, you’ll never need to look at it. But if things go south, that contract is your backup and your best chance of getting paid what you’re owed.

Protect yourself with a contract

Contracts are the smart way to protect yourself and your business, but where do you start?

Writing them up yourself can take hours and using a template can often be too generic to be useful.

That’s why we created AgreementGen, designed to make contract creation simple.

This free AI-powered tool helps you create professional, tailored contracts, from NDAs to freelance agreements, in minutes. Use AI smart suggestions to easily fine-tune your terms, then download it or send it straight to your client for signature.

Give AgreementGen a try and protect your freelance business from the get go.

Contract clauses every freelancer should include

Ah, contract clauses. A topic that makes freelancers eyes glaze over in an instant. But while they might not be the most exciting part of your work, they are one of the most important.

They lay the groundwork for a professional relationship, they protect your time and ensure you get paid. It’s tempting to leave these to a lawyer, but you don’t need a law degree to understand the basics.

Here are a few clauses every freelancer should include in their contracts with clients:

• Payment terms: Clearly outline your rates, payment schedule, and any late fees that might apply.
• Scope of work: Define exactly what’s included (and what’s not) to avoid endless revisions or scope creep.
• Revisions: Set a limit on how many rounds of changes are included.
• Ownership/IP: Clarify who owns the final product once payment is made.
• Termination: Explain how either party can end the agreement.
• Confidentiality: If needed, protect sensitive information with a non-disclosure clause.

The good part is that you no longer have to write these from scratch.

AgreementGen: Contract creation made simple

We’ve all had a client that’s asked for “one last thing”. A few more hours here, another amendment there.

Before you know it, you’re hours out of scope and the client doesn’t have to pay.

Protect yourself by using AgreementGen's client agreement generator to easily write your own contract terms and strut into your next project with confidence.

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• The 5 best AI tools for freelancers
• Do I need an employment contract for freelancers?