Contractual expectations vs reality

During my contracts workshop for coaches in April, an attendee asked an interesting question:

“Sometimes, when clients give you a contract, they say it’s just for ‘formalities’ only. Is this true?”

I answered emphatically: NO!

The client may say the contract is just for “formality” purposes, i.e. that they just need you to sign this piece of paper so they can start working with you, and that whatever the paper says isn’t important because they aren’t going to follow it anyway.

But when you sign the contract, you’re agreeing to its terms—including what it says you will do and are entitled to. So, signing contracts is no small matter at all, and you have to go in with both eyes wide open.

This sharing from the workshop came to mind again after I encountered this situation for the second time this year. Both situations involved different clients, but they were about payment terms, which I guess is no surprise since this is one of the things I care about most in contracts 😂

The contract sets the expectation for what is to happen. In my case, they were that:

• From Client A: My invoice needed to include the dates I worked and the number of hours I worked on those days
• From Client B: They’ll pay me within 60 days of me sending my invoice

I was concerned about both payment terms. For Client A, it was because their previous invoicing instructions hadn’t said I needed to list my work dates and hours.

As for the term from Client B: who likes to wait that long to get paid? 🥲

So, I reached out to both clients to clarify/propose alternative terms. And the reality ended up being that:

• Client A said no, I don’t need to list my work dates and hours in my invoice. Just follow the procedure they shared earlier.
• Client B said they couldn’t change the payment duration because it’s their “standard legal terms” (this detail is important, as you’ll see why next!). BUT they shared that they usually pay within the same month of receiving the invoice, if not the same week.

Why clients give contracts they don’t actually intend to follow

I was satisfied with both situations’ outcomes. But why do clients give contracts they won’t follow in the first place?

This tends to be more common for larger organisations, which rightly require service providers (like freelancers) to sign contracts before starting work.

These organisations often have legal teams that prepare standard contract templates for other departments to use. The people you’ll work with may actually prefer different working arrangements, but they just aren’t allowed to change the contract’s terms.

So, they’ll get you to sign the contract so they can start working with you, and then follow their preferred procedure afterwards. And in this sense, the contract is a “formality”, as the workshop attendee put it.

How to protect yourself when the contract doesn’t match what the client says

If you’re given a contract whose terms differ from what the client says will happen, ask the client if they can change the contract to match. If they can’t, think carefully about whether you’re comfortable signing anyway. The contract’s terms are generally what will be legally enforceable, so either party can hold the other to those terms if that other party doesn’t comply.

• If the reality is better than the contract: e.g. the contract says you’ll be paid within 60 days, but the client says they’ll pay you within a week instead. You can sign, BUT be prepared that the client could still apply the contract’s less favourable terms if they choose to, because that’s what you’ve officially agreed to.
• If the reality is worse than the contract: e.g. the contract says you need to put certain info in your invoice, but the client says you don’t have to. Weigh the risks of agreeing to terms you won’t actually follow: for example, is the client likely to take action against you for non-compliance, and if so, what might they do?

All in all, don’t take contracts lightly. Always read them thoroughly so you know what you’re getting yourself into.

More freelancer news

Here are two free events you may be interested in attending:

8 Jun: Fireside chat on sustaining a performing arts career

Date and time: 8 Jun (Mon) from 2pm to 4pm

VICPA is hosting a fireside chat with Minister of State for Culture, Community and Youth, & Transport Baey Yam Keng on what it takes to build a long-term career in the performing arts.

This event is especially relevant if you’re a performing arts freelancer (or work in adjacent creative fields). It’ll also cover resources you can tap into for sustaining your creative career.

​Register for the fireside chat here.​

14 Jul: Client communication workshop

Date and time: 14 Jul (Tues) from 6.30pm to 8.30pm

During this “Freelancing Essential Series: Client Communication Essentials” workshop, you’ll learn how to:

• Identify common communication issues and communication during projects​
• Handle feedback and revisions
• Set boundaries and handle difficult conversations
• Building long-term relationships

​Get more details and register for the workshop here.​

(Note: I’m not the trainer for this workshop.)