Clause Pattern Library

Browse our database of 46+ risky contract clauses. Each pattern includes plain-English explanations and suggested alternatives.

Acceptance

1 patterns

Acceptance by Silence

low

Work is automatically accepted if client doesn't respond

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Why it matters

While this protects you from indefinite review periods, make sure the acceptance timeline is reasonable (5-10 business days is standard).

What to do

Ensure the acceptance period is clearly defined and reasonable.

Alternative language

"Deliverables deemed accepted if no specific written objections received within 5 business days of delivery."

Example phrases

Accepted unless objected No response means approved

Amendments

1 patterns

Unilateral Amendment

high

Client can change contract terms without your agreement

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Why it matters

Unilateral amendment rights mean the client can change the deal after you've started work. This is extremely one-sided.

What to do

Require mutual written consent for any contract changes.

Alternative language

"Amendments require written agreement signed by both parties."

Example phrases

May change terms at any time Client can modify agreement

Assignment

1 patterns

Free Assignment by Client

medium

Client can assign contract to anyone without your consent

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Why it matters

This allows the client to transfer your contract to another company without asking. You might end up working for an entity you'd never have agreed to.

What to do

Require mutual consent for assignment, or at least notification.

Alternative language

"Neither party may assign this Agreement without the other's written consent, except in connection with a merger or acquisition."

Example phrases

Client may assign to any party Rights transferable without notice

Attribution

1 patterns

No Credit or Attribution

low

You receive no credit or attribution for your work

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Why it matters

While not always critical, attribution can be valuable for building your reputation, especially for visible work.

What to do

Negotiate for credit where the work will be publicly displayed.

Alternative language

"Client shall provide reasonable credit to Contractor in project documentation and public-facing work."

Example phrases

No byline provided Work published anonymously

Audit

1 patterns

Broad Audit Rights

medium

Client has extensive rights to audit your books, records, and work

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Why it matters

Broad audit rights can be intrusive and time-consuming. They're typically unnecessary for fixed-price freelance work.

What to do

Limit audit rights to billing verification, with reasonable notice and during business hours.

Alternative language

"For hourly engagements, Client may audit time records with 7 days notice, during business hours."

Example phrases

Unrestricted audit rights May inspect all records at any time

Compensation

1 patterns

Rate Lock

low

Your rates are locked for extended periods without adjustment

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Why it matters

Fixed rates for long-term contracts mean you can't adjust for inflation or market changes.

What to do

Add annual rate review clause or inflation adjustment.

Alternative language

"Rates may be adjusted annually by mutual agreement. At minimum, rates increase by CPI."

Example phrases

Rates fixed for 2 years No rate changes permitted

Confidentiality

2 patterns

Overly Broad Confidentiality

medium

Almost everything is considered confidential, limiting your ability to discuss the project

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Why it matters

This treats everything as confidential, even publicly available information. You might not be able to discuss basic project details.

What to do

Limit confidentiality to truly sensitive information and add standard exclusions.

Alternative language

"Confidential Information means information marked 'Confidential' or reasonably understood to be confidential. Excludes publicly available information."

Example phrases

All project information is confidential Any information shared is proprietary

Perpetual Confidentiality

medium

Confidentiality obligations never expire

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Why it matters

Perpetual confidentiality means you're bound forever, even after information becomes outdated or public. This is unreasonable for most business information.

What to do

Limit confidentiality to 2-5 years, which is standard for business information.

Alternative language

"Confidentiality obligations shall continue for 3 years after project completion or until information becomes public."

Example phrases

Confidentiality survives forever No time limit on disclosure restrictions

Contract Duration

1 patterns

Auto-Renewal Without Notice

low

Contract automatically renews without explicit notice

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Why it matters

Auto-renewal can lock you into unwanted commitments. You should have clear notice requirements to cancel.

What to do

Require explicit renewal notice and add reminder provisions.

Alternative language

"Agreement expires on end date. Renewal requires written agreement from both parties."

Example phrases

Renews automatically each year Continues unless terminated

Data

1 patterns

Contractor Data Retention

low

You must delete all data immediately upon project completion

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Why it matters

Immediate deletion requirements may conflict with your business records needs or backup procedures.

What to do

Negotiate reasonable retention for business records, with sensitivity to confidential data.

Alternative language

"Contractor shall delete confidential data within 30 days of project completion. Non-confidential business records may be retained per standard practices."

Example phrases

Destroy all files immediately No data may be retained

Dispute Resolution

3 patterns

Remote Jurisdiction

medium

Disputes must be resolved in a distant or inconvenient jurisdiction

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Why it matters

If disputes must be resolved in {location}, you may face significant travel and legal costs to pursue any claims.

What to do

Negotiate for your local jurisdiction or neutral territory.

Alternative language

"Disputes shall be resolved in the jurisdiction where Contractor is located or via online arbitration."

Example phrases

Exclusive jurisdiction in Delaware Must sue in client's home state

Mandatory Binding Arbitration

medium

All disputes must go to binding arbitration, waiving your right to court

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Why it matters

Binding arbitration can be expensive and typically favors repeat players (companies). You waive your right to a jury trial.

What to do

Negotiate for small claims exemption and shared arbitration costs.

Alternative language

"Disputes under $10,000 may be brought in small claims court. Larger disputes subject to arbitration with costs shared equally."

Example phrases

Must arbitrate all claims Binding arbitration required

Loser Pays Attorney Fees

medium

Losing party must pay winner's legal fees, discouraging legitimate disputes

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Why it matters

If you lose a dispute, you must pay the client's legal fees, which could be substantial. This can deter you from pursuing valid claims.

What to do

Remove this clause or make it mutual with a cap on recoverable fees.

Alternative language

"Each party bears its own legal costs regardless of outcome."

Example phrases

Losing party pays legal fees Prevailing party recovers costs

Expenses

1 patterns

No Expense Reimbursement

low

You bear all project-related expenses with no reimbursement

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Why it matters

If the project requires significant expenses (software, travel, etc.), you should clarify what's covered.

What to do

Define which expenses are reimbursable and the approval process.

Alternative language

"Client shall reimburse pre-approved expenses over $50 within 30 days of submission with receipts."

Example phrases

Contractor responsible for all costs No expense reimbursement provided

Force Majeure

1 patterns

No Force Majeure Protection

medium

No protection if external events prevent performance

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Why it matters

Without force majeure protection, you're liable even for events outside your control (natural disasters, pandemics, etc.).

What to do

Add a mutual force majeure clause covering unforeseeable events.

Alternative language

"Neither party liable for delays due to events beyond reasonable control, including natural disasters, war, or government actions."

Example phrases

No excuses for late delivery Must perform regardless of circumstances

Insurance

1 patterns

High Insurance Requirements

medium

Required to carry expensive professional liability insurance

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Why it matters

High insurance requirements add significant cost. The required coverage should be proportional to project value and actual risk.

What to do

Negotiate coverage limits proportional to project value or request client add you to their policy.

Alternative language

"Contractor shall maintain professional liability insurance of $100,000 per occurrence, $250,000 aggregate."

Example phrases

Must carry $2M insurance Proof of E&O required

Intellectual Property

4 patterns

Total IP Transfer

high

All intellectual property rights transfer to client, including pre-existing work

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Why it matters

This clause transfers all IP rights to the client, potentially including your pre-existing tools, templates, and methodologies. You may lose rights to reuse your own work.

What to do

Limit IP transfer to project-specific deliverables. Retain rights to pre-existing work and general methodologies.

Alternative language

"Client receives ownership of final deliverables. Contractor retains rights to pre-existing materials, general skills, and non-client-specific elements."

Example phrases

All work product shall be owned by Company Contractor assigns all rights, title, and interest

No Portfolio Rights

medium

You cannot show the work in your portfolio or for self-promotion

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Why it matters

This clause prevents you from showcasing this work to future clients. For creatives and freelancers, portfolio pieces are essential for winning new business.

What to do

Negotiate portfolio rights, even if limited to after a delay period or with anonymization.

Alternative language

"After project completion, Contractor may display work in portfolio and promotional materials with Client attribution."

Example phrases

Work shall not be displayed publicly Contractor waives right to use for self-promotion

Moral Rights Waiver

medium

You waive your moral rights to the work, including attribution

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Why it matters

Moral rights include the right to be credited for your work and to prevent its distortion. Waiving these means the client can modify your work without credit.

What to do

Retain moral rights or limit the waiver to specific use cases.

Alternative language

"Contractor retains moral rights. Client may make reasonable modifications for business purposes."

Example phrases

All moral rights are hereby waived Contractor surrenders paternity rights

Invention Assignment

high

All inventions during engagement belong to client, even unrelated ones

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Why it matters

This could give the client ownership of personal projects or innovations unrelated to the contract work.

What to do

Limit invention assignment to work directly related to the project.

Alternative language

"Inventions conceived and developed using Client resources and directly related to project scope belong to Client."

Example phrases

All ideas during engagement are ours Inventions belong to Company

Liability

3 patterns

No Liability Cap

critical

No limit on your liability for damages, exposing you to unlimited risk

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Why it matters

Without a liability cap, you could be held responsible for damages far exceeding your project fee. This is a major financial risk.

What to do

Add a liability cap, typically equal to fees paid or a multiple thereof.

Alternative language

"Contractor's total liability shall not exceed the total fees paid under this Agreement."

Example phrases

Contractor accepts full liability No limitation on damages

Broad Indemnification

critical

You must indemnify the client for broad range of claims, including their own negligence

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Why it matters

This broad indemnification clause makes you responsible for legal claims against the client, potentially including their own mistakes or negligence.

What to do

Limit indemnification to claims arising from your actual work and exclude client negligence.

Alternative language

"Contractor shall indemnify Client for third-party claims arising directly from Contractor's proven negligence or willful misconduct."

Example phrases

Indemnify against any and all claims Hold harmless from all liabilities

Consequential Damages

high

You could be liable for consequential damages like lost profits

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Why it matters

Consequential damages can include lost profits, business interruption, and other indirect losses that could far exceed your project fee.

What to do

Exclude consequential damages from your liability.

Alternative language

"Neither party shall be liable for consequential, incidental, or indirect damages."

Example phrases

Liable for all damages including lost profits Responsible for consequential losses

Non-Compete

2 patterns

Broad Non-Compete

high

Non-compete restricts your ability to work with competitors or in your field

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Why it matters

Broad non-competes can prevent you from working in your entire industry. This significantly limits your future opportunities.

What to do

Limit non-compete to specific named competitors and a reasonable time period (6-12 months).

Alternative language

"During the project and for 6 months after, Contractor shall not work for [Specific Competitor A] or [Specific Competitor B]."

Example phrases

Cannot work for any competitor No competing work in the industry

Extended Non-Compete Duration

high

Non-compete extends for unreasonably long period after project ends

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Why it matters

A {duration} non-compete severely limits your career options. Courts often find periods over 12 months unreasonable for freelancers.

What to do

Negotiate to reduce the non-compete period to 6-12 months maximum.

Alternative language

"Non-compete restrictions shall apply for 6 months following project completion."

Example phrases

Non-compete for 2 years Restrictions continue for 36 months

Non-Solicitation

2 patterns

Client Non-Solicitation

medium

Cannot work directly with client's customers after project

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Why it matters

This prevents you from working directly with the client's customers, even if they approach you independently.

What to do

Limit to active solicitation and add exception for inbound inquiries.

Alternative language

"Contractor shall not actively solicit Client's customers. Exception for inbound inquiries not initiated by Contractor."

Example phrases

Cannot solicit our customers No contact with end users

Employee Non-Solicitation

low

Cannot hire or recruit client's employees

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Why it matters

While reasonable for direct poaching, this shouldn't prevent employees from independently applying to work with you.

What to do

Limit to active recruitment and add exception for public job postings.

Alternative language

"Contractor shall not directly recruit Client's employees. General job postings not prohibited."

Example phrases

Cannot hire our staff No recruiting employees

Payment

4 patterns

Net 60+ Payment Terms

medium

Payment terms longer than 30 days delay your cash flow

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Why it matters

This clause requires the client to pay within {days} days of invoice. Industry standard is Net 30. Longer terms mean you're essentially providing an interest-free loan.

What to do

Request Net 30 payment terms, or negotiate for a 50% upfront deposit.

Alternative language

"Payment shall be due within thirty (30) days of invoice date."

Example phrases

Payment will be made net 60 Invoices payable within 90 days

Satisfaction Clause

high

Payment contingent on subjective 'satisfaction' creates unlimited revisions risk

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Why it matters

This clause ties payment to the client's subjective satisfaction. Without objective criteria, the client could endlessly request changes or refuse payment.

What to do

Replace with objective acceptance criteria and limit revision rounds.

Alternative language

"Payment upon completion of deliverables as specified in Schedule A. Client shall have 5 business days to request revisions, limited to 2 rounds."

Example phrases

Payment upon satisfactory completion To be paid when work is acceptable to Client

Payment Contingent on Third Party

high

Your payment depends on whether the client gets paid by someone else

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Why it matters

This 'pay-when-paid' clause means you only get paid if the client's customer pays them. You bear the risk of their business relationships.

What to do

Remove this clause entirely. Your payment should not depend on third parties.

Alternative language

"Payment shall be due within 30 days of invoice, regardless of Client's receipt of payment from third parties."

Example phrases

Contractor will be paid when Client receives payment Payment contingent on project funding

No Kill Fee

high

Client can cancel without compensation for work already done

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Why it matters

Without a kill fee, the client can cancel at any time and you receive nothing for work already completed. This is especially risky for projects requiring significant upfront investment.

What to do

Add a kill fee clause that compensates for work completed plus cancellation costs.

Alternative language

"Upon termination, Client shall pay for all work completed to date, plus a cancellation fee of 25% of the remaining contract value."

Example phrases

Client may terminate at any time without liability No fees due upon early termination

Publicity

1 patterns

Media and Publicity Restrictions

low

Cannot discuss project publicly or issue press releases

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Why it matters

While reasonable for confidential projects, this may prevent you from announcing major client wins.

What to do

Negotiate ability to mention client name and general project type after completion.

Alternative language

"After project completion, Contractor may reference Client name and general project description for marketing purposes."

Example phrases

No public announcements Cannot mention this engagement

Representations

1 patterns

No Representations Survived

medium

Any verbal promises or pre-contract discussions are void

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Why it matters

This 'entire agreement' clause voids any verbal promises made before signing. Make sure everything important is in the written contract.

What to do

Before signing, ensure all important promises are included in the written agreement.

Alternative language

"This Agreement, including attachments, constitutes the entire agreement. [Include all verbal commitments as attachments]"

Example phrases

No oral agreements Only this document matters

Restrictions

1 patterns

Benchmarking Restrictions

low

Cannot discuss or compare performance metrics

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Why it matters

This prevents you from sharing performance data, which may limit your ability to demonstrate results to future clients.

What to do

Clarify that anonymized case studies are permitted.

Alternative language

"Anonymized case studies and aggregated metrics may be shared after project completion."

Example phrases

No benchmarking allowed Cannot publish test results

Scope

3 patterns

Unlimited Revisions

high

No limit on revision requests, potentially leading to endless unpaid work

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Why it matters

Unlimited revisions create scope creep risk. Combined with a satisfaction clause, this could mean endless unpaid work.

What to do

Set a specific number of revision rounds, with additional rounds billed separately.

Alternative language

"Contract includes 2 rounds of revisions. Additional revisions billed at $X per round."

Example phrases

Revisions until approved Unlimited changes included

Vague Deliverables

medium

Deliverables are not clearly defined, leading to scope disputes

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Why it matters

Vague deliverable definitions like 'as needed' leave room for scope expansion without additional compensation.

What to do

Request a detailed scope document listing all specific deliverables.

Alternative language

"Deliverables are limited to items explicitly listed in Schedule A. Changes require written amendment."

Example phrases

Services as reasonably required Deliverables and other items as needed

Scope Change Without Compensation

high

Client can change project scope without adjusting payment or timeline

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Why it matters

This allows the client to expand the project without paying more. Scope changes should trigger price and timeline adjustments.

What to do

Add a change order process requiring written approval and price adjustment for scope changes.

Alternative language

"Scope changes require written change order. Pricing and timeline adjustments will be mutually agreed before work proceeds."

Example phrases

Client may revise requirements at any time Modifications included at no extra cost

Subcontracting

1 patterns

No Subcontracting

low

You cannot hire help or subcontract any portion of work

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Why it matters

This prevents you from using subcontractors, limiting your flexibility to scale or bring in specialists.

What to do

Negotiate ability to subcontract with client approval, while remaining responsible for quality.

Alternative language

"Contractor may engage subcontractors with Client's prior written approval. Contractor remains responsible for all work quality."

Example phrases

Must perform all work personally No subcontractors allowed

Termination

2 patterns

Immediate Termination

high

Client can terminate immediately without notice

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Why it matters

Immediate termination without notice leaves you without time to transition or wind down. This is especially problematic for ongoing projects.

What to do

Require reasonable notice period (14-30 days) for termination.

Alternative language

"Either party may terminate with 30 days written notice. Payment for work completed remains due."

Example phrases

Client may terminate at any time without prior notice Instant termination permitted

Asymmetric Termination Rights

medium

Client can terminate easily but you cannot, or face penalties

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Why it matters

This creates an unbalanced relationship where the client can exit easily but you're locked in. Both parties should have similar termination rights.

What to do

Negotiate equal termination rights for both parties.

Alternative language

"Either party may terminate with 14 days written notice for convenience, or immediately for material breach."

Example phrases

Client may terminate for any reason Contractor termination requires cause

Third Parties

1 patterns

Third Party Beneficiary Rights

medium

Third parties can enforce contract terms against you

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Why it matters

This allows parties not involved in the contract to make claims against you. You could face liability to unknown third parties.

What to do

Exclude third-party beneficiary rights or limit to clearly specified parties.

Alternative language

"This Agreement does not create any third-party beneficiary rights."

Example phrases

Affiliates may enforce terms Third parties have rights under this agreement

Timelines

1 patterns

Strict Timeline Without Buffer

medium

Deadlines are strict with penalties but no buffer for delays outside your control

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Why it matters

'Time is of the essence' makes deadlines legally binding. Combined with penalties, you bear all schedule risk even for client-caused delays.

What to do

Add provisions for deadline extensions when delays are caused by client or external factors.

Alternative language

"Deadlines extend by the duration of any client-caused delays. Penalties waived for delays outside Contractor's control."

Example phrases

No extension for any reason Penalties for late delivery

Warranties

2 patterns

Broad Warranties

high

You warrant things outside your control or knowledge

View details

Why it matters

Broad warranties like 'free of all defects' are impossible to guarantee. You shouldn't warrant things outside your reasonable control.

What to do

Limit warranties to professional standards and specific agreed requirements.

Alternative language

"Contractor warrants work will be performed in a professional manner consistent with industry standards."

Example phrases

Warrants work is perfect Guarantees no errors whatsoever

Long Warranty Period

medium

Warranty period extends significantly beyond project completion

View details

Why it matters

A {duration} warranty period means you're responsible for fixes long after the project ends, often without additional compensation.

What to do

Limit warranty to 30-90 days post-delivery, with paid support after.

Alternative language

"Contractor warrants work for 30 days after delivery. Extended support available at hourly rates."

Example phrases

12-month warranty period Warranty for one year after completion

Working Arrangements

2 patterns

On-Site Work Requirement

low

Required to work on-site when not necessary for the role

View details

Why it matters

On-site requirements add commute time and costs. For most freelance work, this isn't necessary.

What to do

Negotiate remote work with occasional on-site as needed.

Alternative language

"Contractor may perform work remotely. On-site meetings as mutually agreed, with travel expenses reimbursed."

Example phrases

Work performed at our office Must be on premises during business hours

Fixed Hours Requirement

low

Must work specific hours like an employee

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Why it matters

Fixed hour requirements may indicate misclassification. As a freelancer, you typically control your own schedule.

What to do

Negotiate for deliverable-based work rather than hourly requirements.

Alternative language

"Contractor shall complete deliverables by agreed deadlines. Specific hours not required."

Example phrases

Available 9am-5pm Work during normal business hours

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