Previously, on The Importance Of Creating A Contract – Part 1, I discussed the basic vital elements that are needed to understand the functionalities. Now we will be moving to more technical aspects with critical thinking and problem examples.

What Are The 4 Critical Points Of A Contract?

1. You must have legal representation at all times.
2. Everything must be detailed and specified in the contract, including the “what if moments”. If something is forgotten or omitted, then this could lead to unforeseen situations or gaps full of interpretations.
3. In Work For Hire the artist completely resigns the rights of the work(s) to transfer it to the client, however, the opposite is for Commissions, the artist will always be recognized as the author and retain the rights.
4. Not all contracts can be written in the same way since clients have different problems. I recommend that this phrase is stipulated in the contract when charging certain penalties: “said X penalty will have an additional charge at the discretion of the artist…” This can be a disadvantage because if the client reads that, and the cost of said charge has been provided, the client may feel surprised or displeased.

Let’s say each redesign you charge $20, and you have 2 clients who need redesigns on their projects. Both of them have different problems and needs. Client A needs a redesign of a semi-realistic character full color, however, the Client B needs a redesign of a weapon full color (prop design). Where did you lose your investment?

What Penalties Can You Charge?

Late payments, cancellations, redesign, extra revision, project abandonment, rushed deliveries, lost files, etc.

How To Build A Contract?

There are many ways to write a contract, in this case, I am going to show you my way of constructing it for Work For Hire, Commission, Licensing of Use and Estimate, Invoice, and Receipt in future posts in a simpler and briefer way.

• First Page – official document detailing what “Work For Hire” or “Commission” is.
• Second Page – Artist and Client Responsibilities.
• Third Page – Names of the penalties and their conditions.
• Fourth Page – The types of protocols to follow before, during, and after the project.
• Fifth Page – All the clauses are organized by letters and numbers.
• Sixth Page – The last document is a “project review” of the parties involved with important details.(emails, names, addresses, etc.), the scope of the project, and the signatures.

An important note is that the details of a Commission contract, especially the clauses, may not necessarily apply or work appropriately in a Work For Hire contract.

The Downfalls Of A Business

These are critical points that need to be considered and avoided at all costs to maintain a healthy business relationship and ethical values with your clients.

1. When you create an agreement with regulations, and you break them.
2. Having a fragile ego and taking a criticism or suggestion personally or responding negatively (you still have the right to defend your work appropriately along with evidence).
3. Not completing the work you were paid for.
4. Illegally charge for products, services, or penalties without being previously stipulated in the signed agreement.
5. Charging a surcharge to the customer on a percentage that PayPal charges you when completing the transaction. (It is illegal according to PayPal)
6. Not communicate directly with the client and penalize them for not being part of a specific communication platform.
7. Send changes or important announcements late to force the client to resolve at the last minute.
8. Accusing or attacking the client with arguments that lack evidence and validity.
9. Having inappropriate vocabulary or behavior.
10. Tardiness or disappearances and unexplained absences on your part with the client.
11. Have rules or clauses that contradict or conflict with each other.
12. Not having authority or knowledge of your field and allowing yourself to be completely controlled by the client.
13. Break your own contract rules to please the client and avoid conflict.
14. Have a signed written agreement and then create a new agreement in another document that was not part of the previous agreement or verbal protocol with different elements.
15. Not remembering the rules you established previously and trying to invent new ones verbally, even though these are not stipulated within the signed contract.

Don’t forget to bookmark the other post about how to build contracts for Work For Hire, Commission, Licensing of Use and Estimate, Invoice, and Receipt. If you love to try my contracts, click the link below, they have everything you need with ready, editable templates and free updates via emails.

NOTE: I want to emphasize that this post is for educational purposes, legal information is not the same as legal advice. Therefore, it is recommended that you consult with a lawyer to obtain more professional guidance in the legal field.

Thank You For Reading!

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