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Online contracts are redefining the ways in which human beings make commitments. The digital footprint is becoming the new signature, as businesses migrate toward a future where all agreements are digitally signed.

It is estimated that large companies maintain almost 50,000 active contracts at a time. Therefore, all consumers, employees, and CEOs should be well-versed in navigating and creating online contracts.

Business contract templates should be easy to make and use. That’s the aim of this article – to offer up-to-date information about online contracts, contract templates, and how to use contract makers seamlessly.

Let’s get started!

What Is A Contract?

A contract is a legally binding document that exists between two or more parties to ensure responsibilities are clearly outlined and adhered to.

Additionally, contracts provide legal protection to all involved parties if the agreement is not followed. Contracts can seem intimidating, but they are very necessary in employment, housing, healthcare, and other settings.

The word contract is derived from the Latin word contractus, which means “tightened or drawn together.”

Contracts have been a staple in human society since at least 1200 B.C. in ancient Egypt, as they are a reliable way to verify that a task gets done.

In summary: a contract is an oath, binding parties by law to uphold their end of a deal.

What To Include In An Online Contract

If you are just learning how to make a contract, know this: online contracts should be as thorough as any physical, offline contract.

Here are some key ideas that should be included when making a contract or using a contract template:

1. Personal & Professional Details

Those involved in a contract should identify themselves and their role(s) when making a contractual agreement to make the exact parties involved known.

2. Scope of Work

The scope of work lays out the parameters for a project and contributes to overall project management by making sure everyone is operating within their assigned jobs.

This section gives the parties a general idea of what each person is contributing based on their skills and other metrics.

3. Project Responsibilities

Including project responsibilities in an online contract will allow those involved to understand what is expected of them.

This section is extremely important and should be detailed rigorously. Otherwise, the parties involved might not fully agree to the terms of the contract, and consent is a key element of contractual agreements.

4. Milestones

Milestones are an important part of contracts, as they provide all parties with a timeline of what should be completed and due dates.

Milestones should also be quite detailed, as any miscommunication of expectations can result in delays or the production of an inaccurate contract.

5. Payment Details

Payment details are especially critical for ensuring that all parties are paid in a timely manner, but it also projects the person making the payments.

Deciding who will be paid and how they will receive payments prior to the contract signing is critical.

Who Needs The Contract Maker?

Although it may appear as if CEOs and people with medical/legal circumstances are the only people that can use a contract maker, that is not true!

These contract templates are usable to freelancers of all industry and project types. Everyone can benefit from an online contract maker and sample contract templates!

How Can I Create An Online Contract With Bonsai's Online Contract Maker?

Here's how to make a contract with Bonsai in 5 simple steps:

Step One - Select Your Template

Bonsai comes with easy-to-use templates, ready to go right out of the box!

Step Two - Add Your Basic Info

The next step is to enter your basic information.

The prompts will ask for your location (country and state/province), your legal information (if your business functions as an LLC), and the legal name of your client (as well as their affiliation/company name).

Step Three - Add Your Scope of Work

Then, you will be prompted to detail your scope of work.

This should include a project description, task list, milestones, resources, and among other pertinent information that can be found at the provided link. Be as comprehensive as possible!

Step Four - Add Your Payment Details

Next, input the method and amount involved in the payment between you and your client. Rates can be defined as hourly, monthly, or per milestone.

Automated invoices are also available to be distributed with the contract for record keeping.

Step Five - Review & Sign Your Online Contract

Review the contractual agreement several times! Once you are satisfied with the contract, sign the document digitally and have your client do the same. You can also follow our guide on how to insert signature in Word and how to digitally sign a PDF.

Ready to freelance like a pro? Create an online contract with Bonsai.

What are the Advantages of Creating a Contract with Bonsai?

‍Quick and Easy

Contractual agreements can be long and tedious, but Bonsai has streamlined this process by enabling contract formation in five easy, quick steps. Additionally, Bonsai offers useful templates for various freelancing contract scenarios, ranging from a single service to long-term design projects.

Legally Sound

Creating a faulty contractual agreement puts both you and your client at risk.

Bonsai’s free contract maker is a great way to avoid hefty legal fees, or spending countless hours trying to ensure that your contract is truly legally binding and protective of all parties involved!


Bonsai’s contract maker has been developed to include all of the important aspects of a legal agreement.

Bonsai has consulted with thousands of freelancers and attorneys to generate the best possible contract templates for a variety of different circumstances.


Contract drawing is made effortless and secure through Bonsai’s software and electronic signature. Just fill out a few prompts, and you’re done!

As an added bonus, any documents created on Bonsai can be filed electronically and easily accessed in the future.

Customizable To Various Industries

Bonsai’s simple contract templates are extremely versatile. The contracts are applicable to most industries, independent contractors, as well as other legal matters.

Secure Handling Of Personal Information

The electronic signature attached to all Bonsai contracts allows the user to have full confidence that all documents are handled with security and confidentiality in mind.

Streamlined Electronic Signature Process

Contracts can have many “sign here” prompts, which can make the act of signing a contract quite onerous.

The signature process in Bonsai’s online contract agreement interface ensures total security of all documents. It’s efficient, safe, and saves you time!

How Else Can Bonsai Help You?

There are so many ways that Bonsai can make your contract-making process efficient and enjoyable.

Simply explore our website and the hundreds of options at your disposal – all of which can be the basis for your next contract.

Visit Bonsai for a comprehensive range of contract agreement templates tailored to all of your legal needs!

Provides Access To 600+ Business Templates

Bonsai’s free templates provide a wide variety of contracts for hundreds of agreements that can take place. The possibilities are endless!

Offers Tools For Creating Proposals, Contracts, Agreements, Scopes Of Work, Quotations, And Invoices

It can be challenging to find the right methods for generating a variety of documents.

Bonsai offers multiple different options and templates to suit all of your contractual and legal needs as a freelancer, business owner, or one-time user.

Features Employment Contract Templates For New Hires

Bonsai has specially designed templates for new employees that will save employers time from drawing up brand-new contracts with each new hire.

Includes Non-Disclosure Agreement Templates For Privacy

Privacy is vital, which is why we have created a non-disclosure agreement (NDA) template that covers all aspects of confidentiality as well!

Enables Easy And Secure Management Of Business Documents

All documents are signed through Bonsai’s secure signature protocol, which not only allows for easy organization but also ensures that essential documents are digitally linked to all relevant parties.

Allows Quick Customization Of Templates For Various Clients And Needs

Sometimes, a fresh start is necessary when drawing up a contractual agreement. Bonsai offers templates that can be personalized based on your unique needs.


Frequently Asked Questions
Questions about this template.

Are There Free Contract Templates?

Yes! There are tons of free contract templates at Bonsai that are accessible after signing up. Additionally, these contract templates can be altered and customized based on your individual or organizational needs.

What Are The 5 Requirements For A Valid Contract?

The five requirements of a valid contract are: Offer, Acceptance, Mutuality of Obligation, Consideration, and Capacity. All five should be present in your contractual agreement so that it is legitimate, which is why Bonsai’s robust templates are so useful. Bonsai has consulted with multiple attorneys to guarantee that these elements of a valid contract have been satisfied.

The key principle or basic rule that underlies a contract is that the offer presented by one party has to be agreed to by another party. Bonsai has made this basic rule the premise for creating free contract templates that cater to so many different requirements!

The key principle or basic rule that underlies a contract is that the offer presented by one party has to be agreed to by another party. Bonsai has made this basic rule the premise for creating free contract templates that cater to so many different requirements!

Template preview

Free Online Contract Maker

Editable Contract

First Name
Last Name
Acme LLC.
First Name
Last Name
Corporation Corp.

This Contract is between Sample Client (the "Client") and Impact Consulting, a California limited liability company (the "Contractor").

The Contract is dated [the date both parties sign].


1.1 Project. The Client is hiring the Contractor to do the following: [Insert Job Details Here]

1.2 Schedule. The Contractor will begin work on July 22, 2023 and will continue until the work is completed. This Contract can be ended by either Client or Contractor at any time, pursuant to the terms of Section 6, Term and Termination.

1.3 Payment. The Client will pay the Contractor a flat fee of $5,000.00 (USD). Of this, the Client will pay the Contractor $750.00 (USD) before work begins.

1.4 Expenses. The Client will reimburse the Contractor's expenses. Expenses do not need to be pre-approved by the Client.

1.5 Invoices. The Contractor will invoice the Client at the end of the project. The Client agrees to pay the amount owed within 15 days of receiving the invoice. Payment after that date will incur a late fee of 1.0% per month on the outstanding amount.

1.6 Support. The Contractor will not provide support for any deliverable once the Client accepts it, unless otherwise agreed in writing.


2.1 Client Owns All Work Product.

As part of this job, the Contractor is creating “work product” for the Client. To avoid confusion, work product is the finished product, as well as drafts, notes, materials, mockups, hardware, designs, inventions, patents, code, and anything else that the Contractor works on—that is, conceives, creates, designs, develops, invents, works on, or reduces to practice—as part of this project, whether before the date of this Contract or after. The Contractor hereby gives the Client this work product once the Client pays for it in full. This means the Contractor is giving the Client all of its rights, titles, and interests in and to the work product (including intellectual property rights), and the Client will be the sole owner of it. The Client can use the work product however it wants or it can decide not to use the work product at all. The Client, for example, can modify, destroy, or sell it, as it sees fit.

2.2 Contractor's Use Of Work Product.

Once the Contractor gives the work product to the Client, the Contractor does not have any rights to it, except those that the Client explicitly gives the Contractor here. The Client gives permission to use the work product as part of portfolios and websites, in galleries, and in other media, so long as it is to showcase the work and not for any other purpose. The Client does not give permission to sell or otherwise use the work product to make money or for any other commercial use. The Client is not allowed to take back this license, even after the Contract ends.

2.3 Contractor's Help Securing Ownership.

In the future, the Client may need the Contractor's help to show that the Client owns the work product or to complete the transfer. The Contractor agrees to help with that. For example, the Contractor may have to sign a patent application. The Client will pay any required expenses for this. If the Client can’t find the Contractor, the Contractor agrees that the Client can act on the Contractor's behalf to accomplish the same thing. The following language gives the Client that right: if the Client can’t find the Contractor after spending reasonable effort trying to do so, the Contractor hereby irrevocably designates and appoints the Client as the Contractor's agent and attorney-in-fact, which appointment is coupled with an interest, to act for the Contractor and on the Contractor's behalf to execute, verify, and file the required documents and to take any other legal action to accomplish the purposes of paragraph 2.1 (Client Owns All Work Product).

2.4 Contractor's IP That Is Not Work Product.

During the course of this project, the Contractor might use intellectual property that the Contractor owns or has licensed from a third party, but that does not qualify as “work product.” This is called “background IP.” Possible examples of background IP are pre-existing code, type fonts, properly-licensed stock photos, and web application tools. The Contractor is not giving the Client this background IP. But, as part of the Contract, the Contractor is giving the Client a right to use and license (with the right to sublicense) the background IP to develop, market, sell, and support the Client’s products and services. The Client may use this background IP worldwide and free of charge, but it cannot transfer its rights to the background IP (except as allowed in Section 11.1 (Assignment)). The Client cannot sell or license the background IP separately from its products or services. The Contractor cannot take back this grant, and this grant does not end when the Contract is over.

2.5 Contractor's Right To Use Client IP.

The Contractor may need to use the Client’s intellectual property to do its job. For example, if the Client is hiring the Contractor to build a website, the Contractor may have to use the Client’s logo. The Client agrees to let the Contractor use the Client’s intellectual property and other intellectual property that the Client controls to the extent reasonably necessary to do the Contractor's job. Beyond that, the Client is not giving the Contractor any intellectual property rights, unless specifically stated otherwise in this Contract.


The Contractor won’t work for a competitor of the Client until this Contract ends. To avoid confusion, a competitor is any third party that develops, manufactures, promotes, sells, licenses, distributes, or provides products or services that are substantially similar to the Client’s products or services. A competitor is also a third party that plans to do any of those things. The one exception to this restriction is if the Contractor asks for permission beforehand and the Client agrees to it in writing. If the Contractor uses employees or subcontractors, the Contractor must make sure they follow the obligations in this paragraph, as well.


Until this Contract ends, the Contractor won’t: (a) encourage Client employees or service providers to stop working for the Client; (b) encourage Client customers or clients to stop doing business with the Client; or (c) hire anyone who worked for the Client over the 12-month period before the Contract ended. The one exception is if the Contractor puts out a general ad and someone who happened to work for the Client responds. In that case, the Contractor may hire that candidate. The Contractor promises that it won’t do anything in this paragraph on behalf of itself or a third party.


5.1 Overview. This section contains important promises between the parties.

5.2 Authority To Sign. Each party promises to the other party that it has the authority to enter into this Contract and to perform all of its obligations under this Contract.

5.3 Contractor Has Right To Give Client Work Product.

The Contractor promises that it owns the work product, that the Contractor is able to give the work product to the Client, and that no other party will claim that it owns the work product. If the Contractor uses employees or subcontractors, the Contractor also promises that these employees and subcontractors have signed contracts with the Contractor giving the Contractor any rights that the employees or subcontractors have related to the Contractor's background IP and work product.

5.4 Contractor Will Comply With Laws.

The Contractor promises that the manner it does this job, its work product, and any background IP it uses comply with applicable U.S. and foreign laws and regulations.

5.5 Work Product Does Not Infringe.

The Contractor promises that its work product does not and will not infringe on someone else’s intellectual property rights, that the Contractor has the right to let the Client use the background IP, and that this Contract does not and will not violate any contract that the Contractor has entered into or will enter into with someone else.

5.6 Client Will Review Work.

The Client promises to review the work product, to be reasonably available to the Contractor if the Contractor has questions regarding this project, and to provide timely feedback and decisions.

5.7 Client-Supplied Material Does Not Infringe.

If the Client provides the Contractor with material to incorporate into the work product, the Client promises that this material does not infringe on someone else’s intellectual property rights.


This Contract is ongoing until the work is completed. Either party may end this Contract for any reason by sending an email or letter to the other party, informing the recipient that the sender is ending the Contract and that the Contract will end in 7 days. The Contract officially ends once that time has passed. The party that is ending the Contract must provide notice by taking the steps explained in Section 11.4. The Contractor must immediately stop working as soon as it receives this notice, unless the notice says otherwise. The Client will pay the Contractor for the work done up until when the Contract ends and will reimburse the Contractor for any agreed-upon, non-cancellable expenses. The following sections don’t end even after the Contract ends: 2 (Ownership and Licenses); 3 (Competitive Engagements); 4 (Non-Solicitation); 5 (Representations); 8 (Confidential Information); 9 (Limitation of Liability); 10 (Indemnity); and 11 (General).


The Client is hiring the Contractor as an independent contractor. The following statements accurately reflect their relationship:

- The Contractor will use its own equipment, tools, and material to do the work.- The Client will not control how the job is performed on a day-to-day basis. Rather, the Contractor is responsible for determining when, where, and how it will carry out the work.- The Client will not provide the Contractor with any training.- The Client and the Contractor do not have a partnership or employer-employee relationship.- The Contractor cannot enter into contracts, make promises, or act on behalf of the Client.- The Contractor is not entitled to the Client’s benefits (e.g., group insurance, retirement benefits, retirement plans, vacation days).- The Contractor is responsible for its own taxes.- The Client will not withhold social security and Medicare taxes or make payments for disability insurance, unemployment insurance, or workers compensation for the Contractor or any of the Contractor's employees or subcontractors.


8.1 Overview.

This Contract imposes special restrictions on how the Client and the Contractor must handle confidential information. These obligations are explained in this section.

8.2 The Client’s Confidential Information.

While working for the Client, the Contractor may come across, or be given, Client information that is confidential. This is information like customer lists, business strategies, research & development notes, statistics about a website, and other information that is private. The Contractor promises to treat this information as if it is the Contractor's own confidential information. The Contractor may use this information to do its job under this Contract, but not for anything else. For example, if the Client lets the Contractor use a customer list to send out a newsletter, the Contractor cannot use those email addresses for any other purpose. The one exception to this is if the Client gives the Contractor written permission to use the information for another purpose, the Contractor may use the information for that purpose, as well. When this Contract ends, the Contractor must give back or destroy all confidential information, and confirm that it has done so. The Contractor promises that it will not share confidential information with a third party, unless the Client gives the Contractor written permission first. The Contractor must continue to follow these obligations, even after the Contract ends. The Contractor's responsibilities only stop if the Contractor can show any of the following: (i) that the information was already public when the Contractor came across it; (ii) the information became public after the Contractor came across it, but not because of anything the Contractor did or didn’t do; (iii) the Contractor already knew the information when the Contractor came across it and the Contractor didn’t have any obligation to keep it secret; (iv) a third party provided the Contractor with the information without requiring that the Contractor keep it a secret; or (v) the Contractor created the information on its own, without using anything belonging to the Client.

8.3 Third-Party Confidential Information.

It’s possible the Client and the Contractor each have access to confidential information that belongs to third parties. The Client and the Contractor each promise that it will not share with the other party confidential information that belongs to third parties, unless it is allowed to do so. If the Client or the Contractor is allowed to share confidential information with the other party and does so, the sharing party promises to tell the other party in writing of any special restrictions regarding that information.


Neither party is liable for breach-of-contract damages that the breaching party could not reasonably have foreseen when it entered this Contract.


10.1 Overview.

This section transfers certain risks between the parties if a third party sues or goes after the Client or the Contractor or both. For example, if the Client gets sued for something that the Contractor did, then the Contractor may promise to come to the Client’s defense or to reimburse the Client for any losses.

10.2 Client Indemnity.

In this Contract, the Contractor agrees to indemnify the Client (and its affiliates and their directors, officers, employees, and agents) from and against all liabilities, losses, damages, and expenses (including reasonable attorneys’ fees) related to a third-party claim or proceeding arising out of: (i) the work the Contractor has done under this Contract; (ii) a breach by the Contractor of its obligations under this Contract; or (iii) a breach by the Contractor of the promises it is making in Section 5 (Representations).

10.3 Contractor Indemnity.

In this Contract, the Client agrees to indemnify the Contractor (and its affiliates and their directors, officers, employees, and agents) from and against liabilities, losses, damages, and expenses (including reasonable attorneys’ fees) related to a third-party claim or proceeding arising out of a breach by the Client of its obligations under this Contract.


11.1 Assignment.

This Contract applies only to the Client and the Contractor. The Contractor cannot assign its rights or delegate its obligations under this Contract to a third-party (other than by will or intestate), without first receiving the Client’s written permission. In contrast, the Client may assign its rights and delegate its obligations under this Contract without the Contractor's permission. This is necessary in case, for example, another Client buys out the Client or if the Client decides to sell the work product that results from this Contract.

11.2 Arbitration.

As the exclusive means of initiating adversarial proceedings to resolve any dispute arising under this Contract, a party may demand that the dispute be resolved by arbitration administered by the American Arbitration Association in accordance with its commercial arbitration rules.

11.3 Modification; Waiver.

To change anything in this Contract, the Client and the Contractor must agree to that change in writing and sign a document showing their contract. Neither party can waive its rights under this Contract or release the other party from its obligations under this Contract, unless the waiving party acknowledges it is doing so in writing and signs a document that says so.

11.4 Notices.

(a) Over the course of this Contract, one party may need to send a notice to the other party. For the notice to be valid, it must be in writing and delivered in one of the following ways: personal delivery, email, or certified or registered mail (postage prepaid, return receipt requested). The notice must be delivered to the party’s address listed at the end of this Contract or to another address that the party has provided in writing as an appropriate address to receive notice.

(b) The timing of when a notice is received can be very important. To avoid confusion, a valid notice is considered received as follows: (i) if delivered personally, it is considered received immediately; (ii) if delivered by email, it is considered received upon acknowledgement of receipt; (iii) if delivered by registered or certified mail (postage prepaid, return receipt requested), it is considered received upon receipt as indicated by the date on the signed receipt. If a party refuses to accept notice or if notice cannot be delivered because of a change in address for which no notice was given, then it is considered received when the notice is rejected or unable to be delivered. If the notice is received after 5:00pm on a business day at the location specified in the address for that party, or on a day that is not a business day, then the notice is considered received at 9:00am on the next business day.

11.5 Severability.

This section deals with what happens if a portion of the Contract is found to be unenforceable. If that’s the case, the unenforceable portion will be changed to the minimum extent necessary to make it enforceable, unless that change is not permitted by law, in which case the portion will be disregarded. If any portion of the Contract is changed or disregarded because it is unenforceable, the rest of the Contract is still enforceable.

11.6 Signatures.

The Client and the Contractor must sign this document using Bonsai’s e-signing system. These electronic signatures count as originals for all purposes.

11.7 Governing Law.

The laws of the state of California govern the rights and obligations of the Client and the Contractor under this Contract, without regard to conflict of law principles of that state.

11.8 Entire Contract.

This Contract represents the parties’ final and complete understanding of this job and the subject matter discussed in this Contract. This Contract supersedes all other contracts (both written and oral) between the parties.


First Name
Last Name
Acme LLC.
First Name
Last Name
Corporation Corp.