What is a contract? A contract is a written or spoken agreement especially one concerning employment, sales or tenancy that is intended by law. They are formal and legally binding. A contract is an explanation of what you will be doing, the terms of how you will be doing it and the customer’s/client’s obligations and yours. Why do creative need to have written contracts for the services they provide? Often time creatives get the short end of the stick because there is no agreement and clarity with the services they provide for the client. Due to the nature of creative work, when a client is unhappy with the final product they feel like they can ask for a refund. Not that refunds are wrong but creatives usually don’t have refund policies. Contracts help in protecting your intellectual propert. Benefits of having contracts: There is clarity in business relationships, agreements, and rights of the parties involved. They help in preventing misinterpretation of communication and agreements. They help in protecting intellectual property. They provide tangible proof of what was agreed upon between you and the client. What makes a contract legally binding? Consensus- there must be a meeting of minds with regards to obligation and performance. Both parties must be aware of the agreement. Capacity- both parties must have the required capacity to sign a contract. This relates to age and mental clarity. Something of value must be exchanged for something of value. For example your services for money. The contract must be signed by both parties. Basic elements of a Contract: Title: The document needs a title that defines the type of document. Preamble: The preamble is used to highlight the important details of the document. This caninclude the date of execution and information of both parties. Parties: The contract needs to provide all information regarding the parties involved. Thiswould be name, contact details and other details of the parties. Agreement: Any contract is not complete and binding without the agreement of all parties. The parties need to agree on terms of the contract as well as the value of exchange before signing. Things to include in a contract as a creative: Copyright Ownership Payment Schedule Timeline of project Cancellation Policy Refund Policy In the creative world contracts can feel very constricting. Yet contrary to popular belief, contracts can protect both you and the client. You can customize your contracts to include whatever works for you. Unfortunately not everyone can afford a lawyer hence we are providing these contractual basics. You might find administrative tasks frustrating but truth is admin makes the greater difference it helps you run your business smoothly. Invest in contractual agreements to prevent potential problems. Content Producer: Nontobeko Shabangu.