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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.
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Who are contractors, consultants, and freelancers and what do they do?
Contract clauses — what they are and why you need them
Language matters — tips for writing contracts for consulting, contracting, and freelancing
PDF benefits — the features that make PDFs ideal for contract documents
PDF contracts — how to create and customize a contract template for your services
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 —
Consultants, contractors, and freelancers usually work independently and provide specialized 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.
Consultant contracts may be written for professional services such as management consulting, IT consulting, HR consulting, financial consulting, marketing consulting, health and safety consulting, environmental consulting, operations consulting, and more.
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.
Freelancer contracts are often creative, technical, or knowledge-based industries, providing services such as writing, graphic design, web development, photography, consulting, or marketing.
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.
Contractor contracts are often used for skills in areas such as construction, information technology, engineering, design, writing, or other specialized fields.
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 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.
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 specialized 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 organize 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 clarify processes, timelines, and deliverables. These can be incorporated within a contract or attached as appendices, if appropriate.
Review your contract.
Before finalizing 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.
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 unauthorized 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.
There are a few ways to create and customize a PDF contract template. Whichever method you choose, always be sure to customize 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 on + 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, organize 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.
Customize a PDF contract template.
Start with a contract template and customize 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 customizing PDF contracts include the ability to —
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 customize our free PDF contract template for consultants, contractors, and freelancers.
