17 Reasons to Use Client and Contractor Agreements… Every Time

Written by Wesley Henderson

June 15, 2021

All this legal stuff can become overwhelming.

So, it’s important to acknowledge that you have options.

You could continue working without agreements (or maybe with a basic agreement you’ve “created yourself”) and take the chance that something goes wrong.

Whether you are working with clients, hiring other employees or contractors to expand your business, or hiring admin, marketing, or other help, you definitely need legal agreements.

To make a long story short…and to convince you that agreements really do matter, here are 17 great reasons you should be using Client and Independent Contractor Agreements in your business.


Reason 1. Keeps you on the right side of the law by protecting your interests and making your rights and responsibilities clear.


Reason 2. Makes your relationship “professional” by having a documented agreement between all parties.


Reason 3. Outlines the scope of the work you will do so that you avoid “scope creep.”


Reason 4. Clarifies schedules, deadlines, penalties, policies, and practices so there are no doubts about how you expect to work together.


Reason 5.  Makes payment terms absolutely clear so that you avoid uncomfortable misunderstandings and disagreements.



Reason 6. States your cancellation and refund policies so that clients know the rules.


Reason 7. Declares how disagreements or litigation will be handled and whether mediation is required.


Reason 8. Identifies the jurisdiction where disputes will be managed and which state’s laws will govern the interpretation of your agreement.


Reason 9. Helps you get paid on time and in the ways you require.


Reason 10. Minimizes disputes and legal problems that arise when your agreements with clients are not clear or are not officially agreed upon in writing.


Reason 11. Protects your intellectual property when you are creating or using content in the process of working with clients.


Reason 12. Limits your liability so that you are not blamed or held financially responsible for things you shouldn’t be.


Reason 13. Creates clarity and certainty about deliverables and about your client relationship by getting everyone—literally—on the same page.


Reason 14. Sets clients’ expectations about how to work with you and the services or deliverables they will be receiving.


Reason 15. Holds your clients and your contractors accountable when you use contractor agreements to include others to help you deliver services to your clients.


Reason 16. Creates peace of mind for you and for your client—and we could all use more of that!


Reason 17. Helps you give good service and meet client expectations because you have set those expectations yourself.


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