Sample analysis
This is a real ClauseAudit report on an example freelance contract, exactly what you get for your own.
Executive Summary
This is a client-favorable web-development agreement with several terms that shift risk onto you. The biggest concerns are an intellectual-property clause that assigns far more than the project deliverables, payment gated on the client’s subjective "final approval," and a two-year, industry-wide non-solicitation clause that could limit your future work. The deposit and deliverables are handled well. Before signing, prioritize the IP, payment, and non-solicitation clauses, each is negotiable and each carries real financial exposure.
Flagged Clauses
6Original clause text
“Contractor hereby irrevocably assigns to Client all right, title, and interest in and to all work product, concepts, ideas, methods, and materials created, used, or conceived in connection with the Services.”
What this means
This hands the client not just the website you build, but the reusable methods, ideas, and tools you bring to the job, potentially including code libraries and templates you use on every project.
Why it matters
Compared to typical
Negotiation tip
Limit the assignment to the final deliverables only, and add a clause reserving your pre-existing tools, libraries, and templates (grant the client a license to use them as part of the deliverable instead).
Original clause text
“Final payment shall become due upon Client’s final approval of the completed Services, such approval to be determined at Client’s sole discretion.”
What this means
You only get paid when the client decides they’re satisfied, with no definition of what "approved" means and no deadline. You could deliver exactly what was asked and still wait indefinitely.
Why it matters
Compared to typical
Negotiation tip
Tie payment to delivery or milestones. Add: "Services are deemed accepted if Client does not provide written, specific objections within 5 business days of delivery." Consider a kill fee for canceled work.
Original clause text
“For a period of twenty-four (24) months following termination, Contractor shall not solicit or provide services to any person or entity operating in Client’s industry.”
What this means
For two years after the project ends, this tries to stop you from working with anyone in the client’s entire industry, not just the client or their direct customers.
Why it matters
Compared to typical
Negotiation tip
Narrow it sharply: limit to not soliciting the Client’s own employees and named customers, and shorten the term to 6–12 months. Strike the "entire industry" language.
Original clause text
“Contractor shall provide revisions to the deliverables as reasonably requested by Client until Client is satisfied.”
What this means
There’s no cap on revision rounds. "Until Client is satisfied" has no defined endpoint, so you could be working for free long after the project should have closed.
Why it matters
Compared to typical
Negotiation tip
Add a cap: "Includes 2 rounds of revisions. Additional rounds billed at $[X]/hour." Clients rarely object, they just need a number.
Original clause text
“Client may terminate this Agreement at any time for any reason upon written notice, and shall be obligated to pay only for Services accepted as of the date of termination.”
What this means
The client can walk away at any point and only owes you for work they’ve formally "accepted", not everything you’ve actually delivered. Combined with the subjective approval clause above, that’s a gap.
Why it matters
Compared to typical
Negotiation tip
Change to payment for all work performed or delivered up to the termination date, not just "accepted" work. Add a short kill fee if the project is canceled mid-stream.
Original clause text
“Undisputed invoices shall be paid within forty-five (45) days of receipt.”
What this means
You wait up to 45 days to be paid, and there’s nothing that discourages the client from paying late, since no interest or fee applies.
Why it matters
Compared to typical
Negotiation tip
Push for Net-15 or Net-30, and add a modest late fee (e.g., 1.5% per month on overdue amounts) to encourage on-time payment.
Recommendations
- Negotiate the IP clause to assign only the final deliverables and reserve your pre-existing tools and templates.
- Define "approval": deem work accepted if the client doesn’t object in writing within 5 business days of delivery.
- Cap revisions at 2 rounds, with additional rounds billed hourly.
- Narrow the non-solicitation clause to the client’s own staff and named customers, and shorten it to 6–12 months.
- Change termination to pay for all work delivered up to the termination date, and add a kill fee.
What This Contract Gets Right
- A 50% deposit is due on signing, which protects you against a total non-payment.
- The deliverables and project scope are listed clearly and specifically.
- The project timeline and milestone dates are defined up front.
Missing Standard Clauses
- A limitation-of-liability clause capping your total exposure (often to the fees paid).
- A clear dispute-resolution and governing-law/venue provision.
- A late-payment interest or fee term to discourage slow payment.
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This sample is AI-generated and not legal advice. Always consult a qualified attorney before signing any contract.