08/06/2022
Importance of Service Level Agreements for Freelancers/ start-ups who render services to clients
In today’s digital world, freelancers/ start-ups have the freedom and liberty to work from anywhere in the world. Freelancers/ start-ups not only work for domestic clients, but also for international clients. Since freelancers/ start-ups work independently and have a personal contact with their clients, they often neglect to enter into binding contracts with their clients because of the “trust factor”. Failing to do so can be disastrous both for the client and the freelancer/ start-up.
Pros of entering into a contract:
1. Services/ services clearly outlined
The service/ services provided by the freelancer/ start-up is clearly outlined. In case the client wants the freelancer/ start-up to deliver over and above what was initially agreed upon by both parties, an addendum to the contract can be entered into by both parties and the freelancer/ start-up can charge additionally for the additional services provided by the freelancer/ start-up. Since all the terms and conditions of the engagement between both the parties is recorded in writing, neither of the parties can blatantly deny their responsibilities in the future.
2. The cost of the service/ services provided
The freelancer/ start-up can record the charges of his services in the agreement. The freelancer/ start-up can also record the payment method and frequency of payment to be made (weekly, monthly, project based, mile stone based, quarterly, etc). The mode of payment can also be recorded in the contract.
3. Term of the Project
The term of the project is clearly mentioned. Any delay in completing the project can be easily identified. If there is a delay in the completion of the project or rendering services, the client may be at liberty to terminate the contract.
4. Termination
The termination clause is a vital clause in any contract. It allows for parties to terminate the contract either on the expiry of the term of the contract or otherwise. If either of the parties do not hold up their end of the bargain, the other party shall be at liberty to terminate the contract.
5. Rights and obligations of both parties
The rights and obligations of both the parties are clearly mentioned. Neither of the parties can stray away from fulfilling their obligations.
6. Dispute resolution
In case a dispute arises, the dispute resolution clause will help both parties in resolving their dispute in a civil manner.
In a nutshell, it is always better to enter into a written contract rather than a verbal contract as verbal contracts are hard to enforce in a court of law. By entering into a solid written contract, you will be able to save time and money in the future if things don’t work out well between you and your client. This is especially true if you are rendering services to a client on a long term basis such as advertising, social media managing, interior decorators, etc.
