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Freelance Service Agreement
4 high-risk clauses found · 3 protections missing
High Risk
Unlimited liability exposure — no cap on damages
High Risk
Non-compete extends 24 months across all industries
Medium Risk
Auto-renewal with 90-day cancellation window
Safe
IP ownership clearly assigned to contractor
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7.1 Non-Competition
During the term of this Agreement and for a period of twenty-four (24) months following its termination, the Contractor shall not, directly or indirectly, engage in any business activity that competes with the Company in any industry or geographic region in which the Company operates or has plans to operate.
4.2 Payment Terms
The Company shall pay the Contractor within sixty (60) business days following receipt of a valid invoice. Late payments shall not accrue interest.
5.1 Intellectual Property
All work product, inventions, and materials created by the Contractor during the course of this Agreement shall be the sole property of the Contractor until full payment is received.
This non-compete clause extends 24 months post-termination across all industries. This is unusually broad and may severely limit your future employment opportunities. Most enforceable non-competes are limited to 6-12 months in a specific industry.
60 business days is approximately 12 weeks — well above the industry standard of Net-30. Combined with no late payment interest, this heavily favors the payer. Recommend negotiating to Net-30 with 1.5% monthly interest on overdue amounts.
IP ownership is properly retained by the contractor until payment. This is a strong protective clause. No changes recommended.
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Founder & CEO, BrightPath Studios
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