How to create a consultant, contractor, or freelance contract + free PDF services contract template.

Learn how to create a PDF contract when you’re a consultant, contractor, or freelancer, and download a free PDF contract template to customize for your services.

What is a contract?

A contract is a legally binding agreement between two or more parties. It is a document based on the acceptance of an offer from one party and outlines the obligations to each. Contracts between people can cover a wide range of situations. For example, in engaging people to work with, these can include contracts for service, employment contracts, partnership contracts and more.

Contracts can be verbal and/or written.
Both verbal and written agreements are legally binding in some countries. However, having a written contract is advisable for consultants, contractors or freelancers. Written contracts help to ensure everyone understands what work is being agreed upon and their obligations.

Contracts can be written by you, a lawyer or your client.
Written contracts do not have to be created by a lawyer. However, it is recommended that you have contracts reviewed by a lawyer or legal professional. You should also consider seeking legal advice before signing any contracts, particularly if you are unsure about any of the wording or clauses.

Contracts do need to include certain elements.
For a contract to be legally binding, valid and enforceable, it typically must include several key elements. These include —

• Identification of parties.
  The parties involved in agreeing and signing the contract must be identified clearly. The contract should detail legal names, addresses and contact details.
• An offer.
  One party must make a clear and definite offer to the other.
• An acceptance.
  The other party must accept the offer as negotiated, written and described in the contract.
• Adequate consideration.
  Consideration is a legal term that means both parties must agree to exchange something of value. For example, money in exchange for the services provided as a contractor.
• Certainty on terms.
  All parties must be certain about every term they have agreed on to undertake the work covered in the contract. This includes being detailed about specific payment amounts, timeframes, scopes of work, deliverables, timeframes and any other terms and conditions you have included as clauses in your contract.
• Mutual intention.
  Parties must have the intention to create and enter into a legally binding agreement and relationship.
• Legal activities.
  The contract must not involve any illegal activities or go against public policy.
• Legal capacity.
  Both parties must have the legal capacity to enter into the contract. This means they must be of sound mind and legal age.

Who are consultants, contractors and freelancers and what do they do?

Consultants, contractors and freelancers usually work independently and provide specialised services. You’ll find contractors, consultants and freelancers working in all professions across sectors. Consultants, contractors and freelancers all play important roles in today’s economy. They provide specialised expertise and services to businesses and individuals.

There are similarities in how consultants, contractors and freelancers provide services. There are also differences. Summaries of each category and how they typically work are —

Consultants.
Consultants are experts in their fields. They usually offer advice, analysis and recommendations to their clients. Consultants may be engaged to provide their expertise and guidance on various aspects of managing and running a business. Consultants often work on specific projects or plans to help businesses solve problems, improve processes or implement changes. Consultants may also conduct research and analyse data, develop strategies, improve processes, implement changes or provide recommendations to their clients.

Freelancers.
Freelancers are self-employed individuals who offer their services to clients on a project-by-project or casual basis. They may work remotely or on-site, depending on the nature of the work and the preferences of the client. Freelancers are typically responsible for managing all aspects of their businesses, including finding clients, negotiating contracts and delivering projects.

Contractors.
Contractors usually perform specific tasks or services. They may be engaged for a predetermined period or a specific project. Contracting arrangements may vary in duration, from short-term projects and assignments to long-term engagements. They may work on-site as independent contractors at a client’s location or remotely. Contractors are usually responsible for managing their schedules, resources and work processes to deliver results according to the terms of their contract.

Contract clauses - what they are and why you need them.

Put simply, a contract clause is any specific section within a contract that outlines what is being agreed upon. Clauses in contracts establish the rights and responsibilities of each party agreeing to the contract. Contract clauses are essential to clarify the expectations and requirements of both parties. Clauses in contracts are also legally binding once the contract is signed. It’s always advisable to seek legal advice with contracts to ensure that they protect your interests and comply with local laws and regulations.

Contract clauses can cover a wide range of topics. What you include will depend on the nature of the services you provide, industry standards, legal requirements and any specific requirements of the work you do.

Some clauses to consider including in contracts for services are —

• Scope of services.
  A definition of the scope of the services to be provided should be detailed in the contract. Include specific deliverables, milestones, timelines, delivery schedules and any other specific requirements.
• Term and termination.
  Outline the duration of the contract, including expected start and finish dates. State the conditions under which either party can terminate the agreement. Include notice periods and any penalties for early termination.
• Pricing and payment terms.
  Specify the charges you are agreeing to for the provision of your services. Include the total amount and whether your work is based on a fixed price basis or an hourly rate. Detail any additional fees or costs that may be chargeable, as well as any applicable taxes, such as GST. Specify your payment terms and conditions. For example, invoicing procedures, due dates for payment, payment methods accepted, penalties for late payment, discounts for early payment and so on.
• Intellectual property rights.
  Define the ownership rights to any intellectual property created or used during the provision of services. Include any licensing requirements, restrictions and confidentiality obligations.
• Confidentiality and non-disclosure.
  Include clauses to protect sensitive and confidential information exchanged during the contract term. Outline any obligations of both parties regarding confidentiality and non-disclosure of information to third parties. State any data protection requirements.
• Warranties and guarantees.
  Define any warranties or guarantees regarding the quality of services, performance standards or specific outcomes. Include procedures for addressing guarantee or warranty claims.
• Laws and regulations.
  Specify compliance requirements for regulations, industry standards and legislation throughout the term of the contract.
• Insurance requirements.
  If applicable, include clauses where certain types of insurance coverage are required of one or both parties, such as liability or professional indemnity insurance.
• Reassignment and subcontracting.
  Specify whether either party can assign or subcontract any of their obligations under the contract and under what conditions any subcontracting is permitted.
• Non-compete, exclusivity and restraint of trade.
  Consider whether you need to include non-compete, exclusivity and restraint of trade clauses in your contract as an independent contractor. These clauses are also often included in other contracts, such as employee contracts and contracts for the sale of a business. They are included to prevent a party from working or collaborating with any competitors after the contract ends for a specified period.
• Dispute resolution procedures.
  Establish methods and procedures for resolving any disputes, such as negation, mediation or arbitration. State clearly who is responsible for covering legal costs in the event of any disputes.
• Liability and indemnification.
  Specify each party's liability limitations and indemnification obligations should there be any breaches, damages or legal claims arising from the services provided.
• Changes and amendments.
  Outline the process for making changes or amendments to the contract and any requirements for written consent from both parties.
• Severability.
  Include a severability clause that states if any other clause in the contract is found to be invalid or unenforceable, the remaining clauses in the contract will still be valid. A severability clause eliminates the need to create, agree to and sign an entirely new contract should this happen.

Language matters — tips for writing contracts for consulting, contracting and freelancing.

The language you use in your contracts matters. Contracts can and should be written in simple, clear and concise language that everyone can easily understand. Some legal terms may be necessary to ensure your contract is enforceable and legally sound. However, contracts do not necessarily need to be written using excessive legal terms.

Using plain language in contracts will help to ensure you and your clients both understand what you are agreeing to and avoid any disputes. If you're unsure about certain legal terms or language, always consult with a lawyer or legal professional to ensure that your contract is both clear and legally sound.

Some tips for drafting contracts in plain language include —

• Use plain language.
  Write in plain, understandable language that both parties can easily comprehend. Avoid using overly complex terminology. While some legal terms may be necessary, try to avoid using unnecessary and dense legal terminology — use plain language equivalents whenever possible.
• Keep Sentences and Paragraphs Short.
  Long, complicated and rambling sentences can be difficult to read and follow. Keep sentences and paragraphs short and to the point.
• Avoid ambiguity.
  Clearly define terms and concepts to prevent uncertainty. Ambiguous language can lead to misunderstandings and disputes.
• Break down complex concepts and acronyms.
  If your contract involves technical or specialised terms, provide definitions or explanations to ensure your clients understand what they mean. If you do use acronyms, explain what they stand for the first time you use them. For example, Portable Document Format (PDF).
• Be specific and detailed for both parties.
  Clearly outline the rights, responsibilities and expectations of both parties. Use clear and concrete terms and provide specific examples when necessary.
• Use headings and formatting.
  Structure and organise your contracts using headings, bullet points, numbered lists and bookmarks. This makes them easier to navigate and understand.
• Consider incorporating visual aids.
  In some situations, visual aids such as tables, diagrams or flowcharts can help to clarify processes, timelines and deliverables. These can be incorporated within a contract or attached as appendices, if appropriate.
• Review your contract.
  Before finalising your contract, always check that both parties understand the terms and conditions. Consider getting another neutral person to read your contract to test whether it is written in a way that is easily understood. Seek feedback from legal experts if you have any doubts about the wording before you present it to a client or sign a contract yourself.

PDF benefits — the features that make PDFs ideal for contract documents.

PDFs (Portable Document Format) are commonly used for contracts because they provide a reliable, secure, standardised format for sharing, signing and preserving legal documents.

Some of the features that make PDFs ideal for contracts include —

• Universal compatibility.
  PDFs can be opened and viewed using a wide range of devices, systems and browsers. This ensures that both parties involved in the contract can access and view the document easily.

This means whether you’re using a computer, tablet or smartphone, you can use the free Adobe Acrobat Reader and Adobe Acrobat Online to review and sign contracts.

• Preservation of format.
  PDFs preserve the formatting of a document, regardless of the device or platform used to open them. This ensures that the contract will appear exactly as intended by the creator, reducing the risk of misinterpretation.

• Security.
  PDFs offer various security features such as password protection, encryption and digital signatures, which help in ensuring the integrity and authenticity of the contract. This is crucial for legally binding documents like contracts.

• Non-Editable.
  PDFs can be created as non-editable documents, preventing unauthorised modifications to the contract's content. This helps maintain the integrity of the agreement and reduces the risk of tampering.

• Printability.
  PDFs are designed for high-quality printing, ensuring that the contract can be printed with consistent formatting and layout, which is important for official documents.

• Metadata.
  PDFs can contain metadata such as author information, creation date and modification history, which can be useful for tracking the document's origin and history.

• Version control.
  PDF documents can be annotated with version control information, making it easier to track revisions and updates to the contract over time.

PDF contracts — how to create and customise a contract template for your services.

There are a few ways to create and customise a PDF contract template. Whichever method you choose, always make sure that you customise the content and wording to suit your profession and industry. Seek legal advice about what you include and how you say it if you need to.

Create a PDF contract from scratch.
To create a PDF contract from scratch in Adobe Acrobat, simply click + Create in the top menu bar and choose “Blank page.” From there choose from tools in the left-hand menu to add and edit text, organise pages and more.

Convert a contract written in Word to PDF format.
If you’ve written your contract in Word, it’s quick and easy to convert your document to PDF in Adobe Acrobat or you can convert from Word to PDF online.

Customise a PDF contract template.
Start with a contract template and customise each section to cover what you are agreeing to with your clients.
Some useful features in Adobe Acrobat and Adobe Acrobat online for creating and customising PDF contracts include the ability to —

• Edit a PDF
• Rearrange PDF pages
• Password protect a PDF
• Request signatures in PDFs
• Sign a PDF

You can share and send your contract with others directly from within Adobe Acrobat by email, as a link and/or via your preferred cloud storage service.

Are you ready to get started? Download and customise our free PDF contract template for consultants, contractors and freelancers.

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