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Analysis Results

Freelance_Design_Agreement.pdf

This contract pays $75/hr but hands over everything you create and locks you out of similar work for a year worldwide.
You're signing up to design for a tech company at $75/hour, but the fine print is stacked against you. They own everything you make, you can't show it in your portfolio without their permission, and a worldwide non-compete could seriously limit your career after this ends. The 45-day payment window is also unusually long.
high risk

Key takeaways:

  • Contract type: Freelance Independent Contractor Agreement
  • Parties: Nova Tech Solutions Inc., Alex Rivera
  • Effective: March 1, 2026
  • $75/hour, 6-month engagement, 40hrs/week minimum, worldwide 12-month non-compete, work-for-hire IP clause.
Who's responsible for what?
Here's a breakdown of responsibilities for both parties

Your responsibilities

Deliver UX/UI design work including wireframes, mockups, and prototypes

low
Section 1.1

Work at least 40 hours per week minimum

medium
Section 1.3

Accommodate scope changes up to 20% without extra pay

high
Section 1.4

Maintain $1M professional liability insurance throughout

medium
Section 8.2

Client responsibilities

Pay $75/hour within 45 days of receiving your invoice

medium
Section 3.1-3.2

Provide written pre-approval before you spend anything

low
Section 3.4

Give only 7 days notice before terminating (you need 30)

high
Section 2.2

Can reduce your rate by 15% if you miss 2+ deadlines

high
Section 3.5
Risk breakdown
Issues identified in your contract, sorted by priority

Worldwide non-compete bans you from SaaS work for a year

high riskOther

After this contract ends, you can't work for any SaaS productivity company anywhere in the world for 12 months. That's a massive restriction that could seriously hurt your income and career trajectory.

Section 6.1

You have unlimited liability, they're capped at 30 days pay

high riskLiability

If anything goes wrong, you're on the hook for unlimited damages. Meanwhile their liability to you is capped at just ~$9,000 (30 days of pay). This is wildly one-sided.

Section 7.2-7.3

Can't show your work in your portfolio without legal approval

high riskIP

Everything you design is work-for-hire and you need written permission from their legal department to show it anywhere — portfolio, social media, case studies. They can say no for any reason.

Section 4.3

45-day payment window with a rate reduction penalty

medium riskPayment

They have 45 days to pay you — that's 3x longer than the industry standard of 15 days. On top of that, missing 2 deadlines in a month lets them permanently cut your rate by 15%.

Section 3.2 & 3.5

They can fire you instantly for vague reasons

medium riskTermination

Client can terminate immediately if they decide your conduct is 'harmful to business reputation' — that's incredibly vague and gives them a blank check to end the contract without paying for work in progress.

Section 2.4
Top 5 things to consider
Our recommendations for improving this contract
1

Push back hard on the non-compete

high priority

A worldwide 12-month non-compete for a freelancer is extreme and likely unenforceable in many states. Ask to narrow it to 3 months, specific named competitors only, and limited to your local market. Most companies will negotiate this.

Section 6.1
2

Negotiate a liability cap for yourself

high priority

Ask for your liability to be capped at the total amount paid to you under the contract. Something like 'Contractor's total liability shall not exceed the fees paid in the 3 months prior to the claim.' This is a standard ask.

Section 7.2
3

Get portfolio rights in writing now

high priority

Before signing, ask them to add: 'Contractor may display Work Product in their portfolio and for self-promotion purposes after 12 months from project completion, unless specifically restricted in writing.' This is a reasonable ask.

Section 4.3
4

Get payment terms down to net-15 or net-30

medium priority

45-day payment terms are unusually long for freelance work. The industry standard is net-15 to net-30. Ask to change Section 3.2 to 'invoices due within 15 business days.' Most companies will agree to net-30 at minimum.

Section 3.2
5

Match the termination notice periods

medium priority

You need 30 days notice to quit, but they only need 7 days to fire you. Ask for equal terms — either both 14 days or both 30 days. Also request that work completed but not yet accepted still gets paid on termination.

Section 2.2-2.3

Ask specific questions

Sample Conversation

After analyzing your contract, you can ask any question and get a direct answer. Here's an example:

Hi! I've analyzed your Freelance Design Agreement and I'm ready to answer questions. This contract has some serious red flags — especially that worldwide non-compete and the portfolio rights clause. Ask me anything!

Can I use this work in my portfolio after the contract ends?

Unfortunately, no — not without their permission.
Section 4.3 is very explicit: you cannot display, publish, or reference any work you create in your portfolio, social media, or case studies without written consent from their legal department. And they can say no for any reason.
This is one of the most restrictive portfolio clauses I've seen. Most freelance contracts either allow portfolio use freely or after a time period. This one puts all the control in their hands.
What to do: Before signing, ask them to add a clause like 'Contractor may use Work Product for portfolio purposes 12 months after project completion.' Most companies will agree to this — it's a reasonable ask.

What happens if they cancel the project halfway through?

This is where it gets rough for you.
They can cancel with just 7 days notice (Section 2.2), and Section 2.3 says you only get paid for work that's been 'completed and accepted' by them. Anything in progress that hasn't been formally accepted? You don't get paid for it.
So if you're halfway through a major deliverable and they pull the plug, you could lose a significant amount of unpaid work.
What to do: Push for two changes — (1) match the notice periods so they also need 30 days notice, and (2) add language that says you get paid for all work completed up to the termination date, whether formally accepted or not. This is a very standard ask.

This is a sample conversation

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