Direct answer
Watch for vague payment terms, unlimited free revisions, IP that assigns unfinished drafts, no kill fee if the client cancels, one-sided indemnities, and broad non-compete or non-solicit clauses. What the contract calls you (“contractor”) does not decide employee vs contractor status for tax or labor law. Upload the agreement to Contract Checked for a plain-English risk report before you start.
Last reviewed November 2026
Clauses that commonly cost freelancers money
Payment with no due date
“Within a reasonable time” or “upon satisfaction” leaves you waiting. Prefer Net 15 or Net 30, invoicing steps, late interest and a deposit on larger jobs.
Open-ended scope
If deliverables and revision rounds are vague, unpaid scope creep is likely. Spell out change orders.
No kill fee / easy cancellation
If the client can cancel anytime with no payment for work already done, you carry all the risk. Ask for payment for completed milestones or a kill fee.
Overbroad IP assignment
Assignment of “all work product including drafts and ideas” before payment is common. Limit transfer to final deliverables, ideally after full payment, and keep portfolio rights when you can.
Unlimited liability
Watch for uncapped indemnities that make you cover the client’s losses. Caps tied to fees paid are common asks.
Non-compete overreach
Broad bans on working in your field can be unenforceable in some states (California generally voids employment non-competes) but still chill clients. Read carefully.
Contractor vs employee (high level)
The IRS looks at behavioral control, financial control and the relationship as a whole. Some states use stricter tests (for example California’s ABC test for many wage claims). A contract label alone does not settle it.
How Contract Checked helps
Upload your document and get a plain-English report: risk ratings on specific clauses, protections that are missing, and the questions to ask before you sign. Then ask follow-up questions about your own document. You see the credit cost before anything runs.
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Frequently asked questions
Does this apply to MSAs and SOWs?
Yes. Upload a master services agreement, statement of work, consulting agreement or agency contract—or compare two versions side by side.
Is this legal advice?
No. Contract Checked gives general information and an AI reading of your document. It does not create an attorney-client relationship. For a dispute or a decision with a lot of money at stake, talk to a licensed attorney or a local tenant or worker organization.
Can Contract Checked review my document?
Yes. Upload a PDF, Word file, pasted text or a photo. Sign up free for starting credits; you see the credit cost before anything runs. The report is plain English and is not legal advice.