Mistake 1: Vague scope
If the contract says 'website redesign' or 'marketing support' with no detail, you don't have a contract — you have a wish list. Both sides walk away with a different picture in their head, and one of them is going to be disappointed.
Fix: spell out exactly what's being delivered, with milestones if useful, and a short list of what's explicitly out of scope.
Mistake 2: Verbal change orders
Once a contract is signed, every change should be in writing. A short email confirming the change is enough. Verbal changes are the single biggest source of payment disputes.
Fix: make it a habit. After every scope conversation, send a one-paragraph email that says 'confirming we agreed to X for $Y by Z'.
Mistake 3: Skipping the boring clauses
Governing law, notice provisions, and dispute resolution feel like boilerplate — until you need them. They decide which state's courts hear a dispute, how the parties send formal notices, and whether you fight in court or arbitration.
Fix: always pick a state, always pick a notice address, and always pick a dispute path. A template that asks these questions automatically handles this for you.
Mistake 4: IP that transfers too early or too late
If IP transfers on signature, you've handed over your leverage before getting paid. If it never transfers, the client can't legally use what they bought.
Fix: transfer IP on full payment. That's your leverage if invoices go unpaid, and clean ownership for the client once they pay.
Mistake 5: No termination clause
Contracts without termination clauses force both sides to stay in a deal that isn't working. That's bad for relationships and bad for cash flow.
Fix: include a termination-for-convenience clause (with notice) and a termination-for-cause clause (immediate, on material breach).
Mistake 6: Signing in the wrong name
If your business is an LLC or corporation, sign in the name of the entity — not your personal name. Signing personally pierces your liability shield.
Fix: use 'Acme LLC, by [Your Name], Member' rather than just '[Your Name]'.
Frequently asked
- Is it ever okay to use a handshake deal?
- For very small, low-risk work, sure. For anything with real money or real time, write it down — even a one-page email contract is enough.
- Can I fix a bad contract after it's signed?
- Yes — with an amendment signed by both parties. Don't try to handle it verbally.
- What's a 'material breach'?
- A breach significant enough to defeat the purpose of the contract — not paying, not delivering, or breaking a core promise.
- Should every contract have a non-compete?
- Usually no. Non-competes are restricted in many states and rarely enforceable for short engagements. Use NDAs and non-solicitation instead.
LegalDocBuilder.com is a document preparation platform, not a law firm, and does not provide legal advice or representation. For complex matters, review your documents with a licensed attorney in your jurisdiction.