What is an Online Contract?
An online contract is the start of your business relationship. It’s a document that describes the responsibilities of the parties involved in the agreement, and it’s legally binding.
Only once the contract or legal agreement has been signed, does it become a legally binding contract. This means that if it’s breached, legal repercussions ensue. It’s not all doom and gloom, it’s also an essential requirement to protect all the participants that are about to embark in business together.
In the contract, you provide project details, outline payment terms, mention each of the parties involved and their responsibilities to one another. The document also mentions terms and conditions and dispute resolution processes.
It’s truly one of the most important documents any business will have–and that’s why as a freelancer or small business owner, it’s crucial you know how to write one. It allows a professional and legally protected relationship that, in turn, will allow your business to grow.
There are many types of contracts and agreements that you might need depending on your business and industry.
Some examples of contracts that exist are:
- A Freelance contract
- A Non disclosure agreement
- A Lease agreement
- A Construction contract
- A Partnership agreement
- A Rental agreement
By making your contracts online, you’re saving yourself the time and effort of having them printed and posted–and you’re protecting the environment too!
Note: Ready to create your own contract with an easy-to-use, professional, and legally-vetted online contract creator? Access our wide variety of business contracts, proposals, and invoice templates by signing up for free today.
What to Include in an Online Contract
Since a contract is such an important document, you’ll want to make sure all the necessary information is included. This will help you shield yourself from troublesome clients and partners, but also start your business relationship with the best foot forward.
Here are the essential elements to include in your online contract:
- Contact information
- Terms and definitions
- The project’s details
- Deliverables and milestones
- Approval processes
- Payment details
- Intellectual property and confidentiality
- Special considerations
- Termination
- Dispute resolution
Now that you have a broad idea of what elements any simple contract should include. Let’s dig a little deeper and understand what each of them should address:
Contact information
Since a contract is a legally binding document, the first thing you need to do is specify who the agreement is binding. Add all the necessary details for each of the parties to be properly identified: legal name, phone number, email address, and office or business postal address.
Terms and definitions
Your contract will be useless if it doesn’t have legally sound terms. Equally, it will be gibberish if it’s full of legal jargon that only a lawyer can understand. Find a happy medium.
You need the right language so that your contract is legally valid, but also a language that all the parties that sign the contract will comprehend. To do so, you have a terms and definitions section, in it you clarify the meaning of the terms you’ll be using.
Bonsai top tip: Ask advice from your nearest law firm on what terms you’ll need for a contract that will work in your country, state/province, and industry.
Projects details
A contract is also a way to secure your business and set expectations of the work that will be carried out by each party.
In the project details section, you’ll specify everyone’s responsibilities, the aims of the project, and what a successful project looks like. This way, everyone is clear and once you get your contract signed everyone will know exactly what cards are on the table.
Deliverables and milestones
The scope of the project or project details is an overview of the venture that will ensue once the agreement is signed. The deliverables and milestones on the other hand are the nitty-gritty aspects of the contract.
This section will state the specific outcomes of each of the project’s phases and it’s a chance for the two or more parties involved to discuss and agree on the deliverables.
Approval processes
As a freelancer, your time is extremely valuable and you need to look after this precious commodity. That’s why you need to make sure that you know how your project milestones and deliverables will be approved by your clients. Otherwise, you might risk spending extra months and resources waiting to get your client’s approval and delaying the entire project, while having to turn down new opportunities.
Dedicate a section of your contract to explain exactly how your client will approve your work, and how many revisions they have–and their expected dates.
Payment details
A contract is not only important to outline what each party has to do, it’s also what will guarantee that your work as a freelancer is valued, and will be paid for in a timely manner.
We know how hard you work. That’s why your work should be correctly valued, and you shouldn’t have to be waiting around for your paycheck to arrive. Make sure you avoid any of these issues by showing your pricing, payment details and terms.
By being as clear and transparent about this information, you’re increasing your chances of smooth and punctual payments. Just what we like to see.
Bonsai top tip: Clearly state the due dates for each payment. Don’t be afraid to use bold or italics to get your point across.
Intellectual property and confidentiality
Depending on the industry and work that you’ll be doing, there might be confidential information, copyrights, and other IP rights to consider.
It’s important to mention if any special considerations regarding intellectual property will be needed. Additionally, if a non-disclosure agreement is signed, or copyrights are withheld ensure you specify until when these confidential and IP considerations will be.
In some businesses, even after the contract has terminated the NDAs are still legally applicable–think about Silicon Valley’s tech giants and their top secret information.
Special considerations
As a freelancer, you’re a special kind of worker–and also a special kind of human, but that’s for another article. This means there might be unique considerations you’ll need to add to your contract.
For example, you might add a non-exclusivity clause to allow you to do work for other clients while you’re working for this particular client. After all, as a freelancer you’re probably juggling multiple clients and gigs at the same time.
Another example to consider would be time to be contacted. If you’re a freelancer that works remotely, you might state at what times the client can contact you, or how long you’ll take to respond to their emails or calls.
Termination
Ensure you’re stating a clear termination clause. When or how will the contract end? Is it date-dependent or project completion-dependent?
This is super important, otherwise you might be bound to your client forever–well maybe not forever, but longer than you expected.
Dispute resolution
Breach of contract is a term used when one of the parties fails to deliver their end of the bargain, or if one essential element is missing. The party that feels there has been an injustice or unfair treatment can sue for compensation.
However, it’s better to have dispute resolution processes in place–it’s always best to avoid court whenever you can.
Now you’re an expert on contracts! Well, sort of, now you know what the backbone of a contract includes, and why each is important–especially for a freelancer. Let’s get into how to write them.
How to Write a Contract Using an Online Creator
So far, we’ve mentioned just the basics that any contract needs. As you can imagine, drafting a contract from scratch every time is time-consuming. You won’t only need the basics. You’ll also need some more industry and project-specific requirements.
Save yourself some valuable time and make your life easier by using this online contract creator.
Finding the right contract template is not always easy. You need to make sure it includes all of these essential elements. As well as making sure it has been legally vetted by top lawyers, and that it looks professional–oh, don’t forget you need it to work for your country and your industry!
Benefits of using an online contract creator
Contract templates do half of the work for you. They allow you to spend your time on what you do best–on your skills and business, not on drafting paperwork.
Here are the main benefits of using an online contract creator:
- It showcases your professionalism: starting business together by providing a professional contract demonstrates you’re serious, not only about your own business, but about your partnership too.
- It makes consistency easy: as a freelancer you wear your personal brand on your sleeve–and consistency is key for that. Being able to present yourself consistently with all of your clients will create the positive impression and reputation any freelancer dreams of. It will help you win those referrals!
- It saves you time: not needing to start all over again each time you have a new client is truly a life savior when it comes to your precious time.
- It’s legally bulletproof: when using a contract generator that has been legally vetted you’re shielding your work and your business.
Disadvantages of using an online contract creator–and how to avoid them
Any contract generator won’t necessarily be the solution to all of your problems. If you’re not careful, you may end up using a faulty creator that will do more harm than good to your business and reputation.
To really seize the benefits of an online contract creator, make sure you:
- Ensure it is legally vetted
- Ensure it includes everything you need
- Never forget to proofread your work
By following those three simple tips you’re guaranteed to seize the full potential of using an online contract generator or template.
Creating an Online Contract is Simple with Bonsai
Making a watertight contract is a daunting task. You’ll probably spend a lot of time and resources trying to get one on your own. The best way to save yourself the trouble is by using an online freelance contract creator.
What’s so good about Bonsai’s contract generator? Let’s have a look:
- It’s legally vetted by top lawyers
- It’s 100% customizable for your convenience
- It includes all the necessary information to protect you, your client and your business
- They look professional, so that you can look professional
- They’re so easy to use that you’ll only need a few minutes after choosing your template
- It provides online signature options to make the process run even more smoothly
- Get a notification when your contract has been signed so that you can start working right away
- You can even integrate your contract to your invoicing process on Bonsai
Additionally, with Bonsai, you can create any free legal documents you can think of thanks to hundreds of templates available.
Simply download, edit, and sign to get started!
Online Contract Creator FAQs
How long should my contract be?
Although there's no specific length for a contract, you should keep it shorter than 20 pages long. What’s important is that it contains all of the essential information to secure and protect your business, set realistic expectations, and make sure everyone is starting the business relationship understanding what their responsibilities are.
It might take you four pages or ten or even more, don’t worry about the length, just make sure it is quality and necessary content.
What should a contract include?
The backbone of every contract should include the following terms to give it legal weight.
Your contract should include:
- Contact information
- Terms and definitions
- Projects details
- Deliverables and milestones
- Approval processes
- Payment details
- Intellectual property and confidentiality
- Special considerations
- Termination
- Dispute resolution
Thankfully, all of this important information is already included when using one of Bonsai's contract templates. All you'll need to do is fill in the details, proofread it, and send it on its way!
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