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How to write a service agreement that actually protects you

Most freelancers skip the agreement or use a template they found online. Here's what to include — and what most templates miss.

A service agreement is not a formality. It's the document that determines what happens when things go wrong — and things always eventually go wrong. Scope creep, late payments, scope disagreements, ghosted clients. A solid agreement prevents all of them, or at minimum, gives you clear ground to stand on.

The 7 things every freelance agreement needs

1. Scope of work — specific deliverables, not vague descriptions
2. Timeline — start date, milestones, and final delivery date
3. Payment terms — total amount, schedule, and accepted payment methods
4. Revision policy — how many rounds are included and what counts as a revision
5. Kill fee — what the client owes if they cancel mid-project
6. IP transfer — when ownership transfers (upon full payment is standard)
7. Governing law — which jurisdiction applies in a dispute

What most templates miss

The biggest gap in generic templates is the revision policy. 'Unlimited revisions' sounds client-friendly until a client uses it to redesign their entire brand three times. Be specific: two rounds of revisions per deliverable. Additional rounds billed at your hourly rate.

Add a 'feedback deadline' clause. If the client hasn't provided feedback within 7 business days, the deliverable is considered approved and the timeline adjusts accordingly. This eliminates the silent ghosting that kills project momentum.

On kill fees

A kill fee (also called a cancellation fee) is typically 25–50% of the remaining project value. It compensates you for the opportunity cost of turning away other clients and the work already completed. Clients rarely trigger it — but knowing it's there protects you from projects that suddenly 'go on hold.'

Electronic signatures are legally binding

In the US (ESIGN Act), EU (eIDAS), UK, Canada, and Australia, electronic signatures carry the same legal weight as pen-and-paper signatures. The key requirement is that both parties clearly agreed to use electronic signatures — which your agreement should state explicitly.

The best contract is the one that never needs to be enforced — because it made every expectation crystal clear from day one.