Business

10 contract red flags every freelancer should know

Indemnity, IP ownership, payment terms, non-competes — the clauses that bite you 6 months later.

Elevatools Team·2026-01-15· 3 min
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  1. Unlimited indemnity — cap at fees paid or 1× contract value.
  2. All work is work-for-hire — carve out pre-existing IP.
  3. Net-90 payment — negotiate Net-15 or 30, with late-fee teeth.
  4. Auto-renewal — require 30–60 day notice.
  5. Non-compete > 12 months — rarely enforceable but creates noise.
  6. Termination for convenience without kill fee — ask for 30 days notice + fee.
  7. Sole jurisdiction in another country — push for neutral.
  8. No SOW versioning — always Schedule A + amendments.
  9. Confidentiality without time limit — cap at 3–5 years.
  10. No limitation of liability — cap at fees paid.

Use Elevatools Contract Analyzer to flag these automatically.

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