40 Business Contracts to Know as a Creative Entrepreneur
Summary
As a creative entrepreneur, understanding business contracts is crucial to protect your work and ensure smooth collaborations. This guide covers 40 essential contracts, from Client Services Agreements to Intellectual Property Assignment Agreements, helping you navigate the legal side of your business with confidence.
Reflection Questions
- Which contracts do you feel most uncertain about, and how can you educate yourself or seek professional help to better understand them?
- How can having clear and well-drafted contracts improve your relationships with clients, partners, and collaborators?
- What steps can you take to ensure that you’re using the appropriate contracts for every aspect of your creative business?
Journal Prompt
Reflect on your experiences with contracts in your creative business. How have they impacted your work and relationships? Consider which contracts you need to implement or improve upon to protect your business and foster stronger partnerships.
Whether an interior design firm, a ceramics studio, or a fashion line, starting your own creative business can be incredibly rewarding, but it can also be full of new terms and concepts you’ve never encountered before. For example, the legalese in business contracts can be confusing (and overwhelming). While contracts might sound intimidating, they’re really just agreements that help keep everything running smoothly and everyone on the same page.
In this DesignDash guide, we break down 40 must-know business contracts for creative entrepreneurs like you. From simple agreements you can handle yourself to more complex documents where a lawyer’s expertise is essential, we’ve got you covered. Whether you’re collaborating with other creatives, protecting your intellectual property, or setting up shop online, these contracts will help you navigate the business side of your creative journey with confidence and clarity. Let’s get started!
40 Business Contracts to Know Before Launching Your Creative Venture
There are five different types of business contracts. These are categorized by purpose, parties involved, legal implications, form and execution, and industry. Purpose-based contracts focus on the specific function of the agreement. For example, lease agreements, sales contracts, and service contracts are all purpose-based contracts.
Contracts based on the parties involved distinguish between bilateral, unilateral, and third-party contracts, depending on who is making promises or benefiting. Legal implications categorize contracts as void, voidable, enforceable, or unenforceable, reflecting their validity under the law. They might also specify dispute resolution.
Form and execution differentiate between express, implied, executed, and executory contracts based on how they are formed and completed. Finally, industry-specific contracts relate to particular sectors, such as construction, technology, or licensing, tailoring terms to industry standards and needs. For example, licensing agreements are industry-specific.
Let’s take a look at thirty business contracts you might need as a new owner.
Client Services Agreement (CSA)
A Client Services Agreement (CSA) is a contract between you and your client that sets the stage for your working relationship. The point of this contract is to make sure everyone knows what to expect.
Service agreements clearly outline the work you’ll be doing, when it will be completed, how much you’ll be paid, and what responsibilities each of you has. By setting these expectations upfront, you avoid surprises and ensure that both you and your client can focus on the project with confidence.
Independent Contractor Agreement
An Independent Contractor Agreement is a business contract that defines the terms when you’re hired as an independent contractor rather than an employee. Independent Contractor Agreements lays out the specifics of your relationship with the client, including payment terms, who owns the rights to the work you create, and how confidentiality will be maintained.
This agreement helps protect your work and ensures a smooth, professional collaboration. Of course, you might also send ICAs to independent contractors you want to hire as a business owner, so this goes both ways.
Non-Disclosure Agreement (NDA)
Also called a Confidentiality Agreement, a Non-Disclosure Agreement (NDA) is a contract that keeps any shared sensitive information private. The point of this contract is to protect the confidential information you exchange with another party, whether you’re discussing new ideas, business strategies, trade secrets, or other private matters. An NDA ensures that this information isn’t disclosed to others, giving you peace of mind that your business interests are safeguarded.
Copyright License Agreement
A Copyright License Agreement is a contract that grants someone else permission to use your creative work under specific conditions. The point of these legal documents is to allow others to use your work—like designs, writings, or art—while you retain control over how it’s used. The agreement specifies the terms of use, including how long the work can be used, what it can be used for, and any limitations, ensuring that your work is respected and used as you intend.
Collaboration Agreement
A Collaboration Agreement is a contract that defines the terms when you team up with another creative or business. The point of this legal agreement is to clearly outline the roles and contributions of each party, how any revenue will be shared, and who will own the intellectual property created during the collaboration. With a Collaboration Agreement in place, you can focus on working together creatively, knowing that everything is clearly defined and agreed upon from the start.
Partnership Agreement
A Partnership Agreement is a contract that sets the foundation for a business relationship between two or more partners. The point of this contract is to clearly define each partner’s role, how much they’re contributing to the business (whether it’s money, time, or skills), how profits and losses will be shared, and what happens if someone wants to leave the partnership.
Think of it as a roadmap that guides your business partnership, helping you avoid potential conflicts and ensuring that everyone knows what they’re responsible for. It’s a must-have if you’re starting a business with someone else, as it keeps everything transparent and fair.
Non-Compete Agreement
A Non-Compete Agreement is a contract that restricts someone from starting a similar business or working with a competitor in a certain area and for a certain time after leaving your business or ending a contract. The point of this contract is to protect your business by preventing former employees, partners, or contractors from taking your secrets or client base to a competitor.
However, it’s important to note that the legal status of non-compete agreements is currently in flux. Your non-compete might not be a legally binding agreement. The federal government has proposed making them illegal in many situations, so be sure to check the latest legal developments before including one in your business agreements. For example, the FTC announced earlier this year that most existing agreements are now unenforceable.
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Work-for-Hire Agreement
A Work-for-Hire Agreement is a contract that specifies that any creative work produced under the agreement—like a logo, website design, or piece of writing—is owned by the employer or client, not the creator. The point of this contract is to make sure that the person or company paying for the work owns all rights to it from the start.
This is particularly important if you’re hiring freelancers or contractors to create something for your business, as it ensures you have full control over how the work is used, modified, or distributed without any legal hiccups down the road.
Artist Representation Agreement
An Artist Representation Agreement is a contract between an artist and an agent or gallery that represents their work. The point of this contract is to clearly lay out the terms of the relationship, including how much commission the agent or gallery will take on sales, what their responsibilities are (like promoting or selling your work), and how long the agreement will last.
It’s like a partnership where both sides know what they’re bringing to the table and what they’ll get out of it. This contract helps ensure that you, as the artist, are treated fairly and that your work is represented in the best possible way.
Service Level Agreement (SLA)
A Service Level Agreement (SLA) is a business agreement that outlines the expected level of service between a provider and a client. The point of this contract is to set clear expectations for the quality and timeliness of the service being provided, how issues will be resolved if things go wrong, and what happens if the provider doesn’t meet the agreed-upon standards.
An SLA helps ensure that both sides are satisfied with the work, whether you’re offering a service or hiring someone else to do so. It holds the service provider accountable while also giving them a clear understanding of what’s expected.
Royalty Agreement
A Royalty Agreement is a contract that details how and when a creator will be paid for the use of their intellectual property—like music, art, or writing. The point of this contract is to ensure that you, as the creator, are fairly compensated each time your work is used, whether it’s being sold, streamed, or published.
It lays out the percentage of royalties you’ll receive, how often you’ll be paid, and any conditions or limitations. This agreement helps you protect your creative rights and provides a steady stream of income as others enjoy and use your work.
Licensing Agreement
A Licensing Agreement is a contract that allows someone else to use your intellectual property—such as designs, logos, or software—under specific conditions and for a fee. The point of this contract is to give others permission to use your creations while you retain ownership, and to ensure that you’re compensated for their use.
It’s a win-win situation where your work reaches a broader audience, and you get paid for it. This agreement clearly defines what the licensee can do with your property, how long they can use it, and what you’ll receive in return, making it an essential tool for protecting your rights and monetizing your creations.
Commission Agreement
A Commission Agreement is a contract that spells out the terms when someone hires you to create custom work. The point of this contract is to make sure both you and your client are clear on what’s being created, how much it will cost, when it will be delivered, and who will own the final piece. Whether you’re designing a logo, painting a mural, or crafting a piece of jewelry, this agreement helps set expectations and ensures you get paid for your hard work while protecting your rights to the work you create.
Influencer Agreement
An Influencer Agreement is a contract between a brand and an influencer who is hired to promote products or services. The point of this contract is to define exactly what the influencer will do—such as creating content, posting on social media, or attending events—along with how and when they’ll be paid.
It also covers important details like how often they’ll post and what disclosures they need to make (like letting their audience know it’s a paid promotion). This agreement helps keep the relationship professional and ensures that both the brand and influencer are on the same page.
Terms and Conditions
Terms and Conditions are the rules your customers agree to when they use your products or services. The point of this contract is to provide a legal framework that covers important topics like payment terms, refund policies, and what happens if something goes wrong. Think of it as the fine print that protects your business and sets clear expectations for your customers. It’s an essential document that helps prevent misunderstandings and ensures that everyone knows the rules.
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Master Services Agreement (MSA)
A Master Services Agreement (MSA) is a contract that lays out the general terms and conditions for your working relationship with a client. The point of this contract is to create a framework that covers the big-picture details of your partnership, like payment terms, confidentiality, and how disputes will be handled.
Specific projects or tasks are then defined in separate documents called Statements of Work (SOWs). An MSA is like setting the ground rules before diving into the details, helping both you and your client stay aligned as you work together.
Statement of Work (SOW)
A Statement of Work (SOW) is a detailed document that describes exactly what needs to be done for a specific project. The point of this contract is to outline the tasks, deliverables, timelines, and payment terms for a particular job under a broader Master Services Agreement (MSA).
It’s where you get into the nitty-gritty details, making sure everyone knows what’s expected and when it will be completed. An SOW keeps the project on track and ensures that both you and your client are clear on all the specifics.
Website Terms of Use and Privacy Policy
Website Terms of Use and Privacy Policy are essential documents for anyone running a website. The point of these contracts is to protect your business and your visitors by outlining how your site can be used and how you handle their data.
The Terms of Use set the rules for using your website, while the Privacy Policy explains how you collect, store, and protect personal information. These documents help you stay compliant with privacy laws and build trust with your audience by being transparent about your practices.
Equipment Lease Agreement
An Equipment Lease Agreement is a contract that outlines the terms when you lease equipment for your business. The point of this contract is to clarify the responsibilities of both you and the equipment owner, including how much you’ll pay, how the equipment should be maintained, and what happens at the end of the lease. Whether you’re leasing computers, cameras, or machinery, this agreement helps ensure that you have what you need to run your business without any unexpected surprises.
Event Agreement
An Event Agreement is a contract that defines the terms for participating in or organizing an event. The point of this contract is to outline the responsibilities, payment terms, and any liability waivers for everyone involved. Whether you’re hosting a workshop, setting up a booth at a trade show, or planning a corporate event, this agreement helps make sure everything runs smoothly and that all parties are clear on their roles and what’s expected.
Distribution Agreement
A Distribution Agreement is a contract that sets the terms for how your products will be distributed, whether they’re physical goods or digital products. The point of this contract is to define where your products will be sold, how they’ll be priced, and what the responsibilities of the distributor are. This agreement is crucial if you’re working with someone else to get your products to market, as it ensures that everyone is on the same page about how your products will reach customers.
Joint Venture Agreement
A Joint Venture Agreement is a contract that establishes the terms when you and another party team up for a specific business project.
The point of this contract is to clearly define each party’s roles, contributions, and how profits (or losses) will be shared. It’s like a business partnership, but usually for a single project or a limited time. This agreement helps you collaborate effectively while protecting your interests and ensuring that everything is fair and transparent.
Franchise Agreement
A Franchise Agreement is a contract that outlines the rights and responsibilities of both the franchisor (the person or company that owns the brand) and the franchisee (the person who is buying the right to open a business under that brand).
The point of this contract is to detail everything from fees and royalties to branding guidelines and operational standards. If you’re expanding your business through franchising, this agreement is key to maintaining consistency across all locations and ensuring that both parties know what’s expected.
Influencer Marketing Agreement
An Influencer Marketing Agreement is similar to an Influencer Agreement but focuses specifically on the marketing aspects. The point of this contract is to lay out the details of the marketing campaign, including the content that needs to be created, the audience engagement metrics to be achieved, and the goals of the campaign.
It ensures that both the influencer and the brand are aligned on what needs to be done and what success looks like, making the campaign run smoothly and effectively.
Publishing Agreement
A Publishing Agreement is a contract between you and a publisher that outlines the terms for publishing your work, whether it’s a book, article, or other content. The point of this contract is to define how royalties will be paid, who owns the rights to the work, and what responsibilities the publisher has for marketing and distribution. This agreement helps ensure that you’re fairly compensated for your work and that you have a clear understanding of how it will be promoted and sold.
Employment Agreement
An Employment Agreement is a contract you use when hiring employees. The point of this contract is to detail job responsibilities, compensation, benefits, confidentiality, and what happens if the employment relationship ends. It sets clear expectations for both you and your employee, helping to avoid misunderstandings and ensuring that everything is in writing from the start. This agreement is crucial for building a strong, professional relationship with your team members.
Artist Consignment Agreement
An Artist Consignment Agreement is a contract used when you place your art or products with a gallery or shop on consignment. The point of this contract is to outline the terms of the display, sale, and commission rates for your work. It ensures that you’re compensated fairly when your art sells and that you have clear terms about how your work will be handled while it’s in someone else’s care. This agreement helps protect your rights as an artist and ensures a smooth relationship with the gallery or shop.
Loan Agreement
A Loan Agreement is a contract used when you borrow or lend money for your business. The point of this contract is to define the terms of the loan, including the repayment schedule, interest rate, and what happens if the loan isn’t repaid on time. Whether you’re borrowing money to start your business or lending money to someone else, this agreement helps ensure that everyone understands the terms and is protected if something goes wrong.
Photography/Videography Release Form
A Photography/Videography Release Form is a contract that grants permission to use someone’s likeness in your creative work, like photos or videos. The point of this contract is to protect you from future claims of unauthorized use by getting the person’s consent in writing. Whether you’re a photographer, filmmaker, or content creator, this form ensures that you have the legal right to use the images or footage you’ve captured.
Trademark License Agreement
A Trademark License Agreement is a contract that allows someone else to use your trademark—such as your brand name or logo—under specific conditions. The point of this contract is to protect your brand while generating revenue by allowing others to use your trademark in a way that you control. This agreement helps you maintain the integrity of your brand while also expanding its reach through partnerships or licensing deals.
Intellectual Property Assignment Agreement
An Intellectual Property Assignment Agreement is a contract that transfers ownership of intellectual property (like a design, invention, or trademark) from one party to another. The point of this contract is to ensure that all rights to the intellectual property are officially transferred, whether you’re selling your work, transferring it to a business partner, or assigning it to a client. This agreement helps clarify who owns what, avoiding potential disputes down the line.
Vendor Agreement
A Vendor Agreement is a contract between a business and a vendor who supplies goods or services. The point of this contract is to clearly outline the terms of the purchase, including pricing, delivery schedules, and quality standards. This agreement helps ensure that you receive what you need, when you need it, and at the agreed-upon price. It also provides protection if there are any issues with the products or services provided.
Consulting Agreement
A Consulting Agreement is a contract used when hiring a consultant or when you’re providing consulting services. The point of this contract is to define the scope of the consulting work, the payment terms, and any confidentiality or non-disclosure requirements. This agreement ensures that both parties understand the expectations and responsibilities, leading to a successful consulting relationship.
Non-Solicitation Agreement
A Non-Solicitation Agreement is a contract that prevents an individual from soliciting your clients or employees after leaving your business. The point of this contract is to protect your business relationships and workforce, ensuring that someone doesn’t take your clients or team members with them if they move on. This agreement is particularly important if you’re concerned about competition or the loss of key business connections.
Maintenance Agreement
A Maintenance Agreement is a contract that outlines the terms for ongoing maintenance of a product, service, or equipment. The point of this contract is to specify what maintenance will be provided, how often, and at what cost. This agreement helps ensure that your equipment or services remain in good working order, reducing the risk of unexpected breakdowns or additional costs.
Affiliate Agreement
An Affiliate Agreement is a contract between a business and an affiliate who promotes the business’s products or services. The point of this contract is to define how the affiliate will promote your products, how they’ll be compensated (usually through commissions), and any guidelines they need to follow. This agreement helps you expand your reach through affiliate marketing while ensuring that your brand is represented in a way that aligns with your values.
Hosting Agreement
A Hosting Agreement is a contract between a business and a hosting provider for online services, like website hosting. The point of this contract is to outline the terms of the hosting service, including uptime guarantees, data storage, and security measures. This agreement helps ensure that your website or online services remain operational and secure, providing peace of mind that your online presence is protected.
Retainer Agreement
A Retainer Agreement is a contract used when a client pays in advance for your services, often on an ongoing basis. The point of this contract is to outline the terms of the retainer, including what services will be provided, the payment schedule, and how unused hours or funds will be handled. This agreement is particularly useful for creative professionals like designers, consultants, or lawyers who offer continuous services over time.
Reseller Agreement
A Reseller Agreement is a contract between a manufacturer or service provider and a reseller who will market and sell their products or services. The point of this contract is to define the terms under which the reseller can sell the goods, including pricing, branding guidelines, and the territories in which they can operate. This agreement is essential if you’re allowing others to sell your products, as it helps protect your brand and ensures consistency in how your products are represented.
Creative Commons License
A Creative Commons License is a type of public copyright license that allows others to use your creative work under certain conditions. The point of this contract is to specify what others can and cannot do with your work, such as using it for non-commercial purposes or requiring attribution. This license is particularly useful for artists, writers, and other creators who want to share their work more freely while still maintaining some control over how it’s used.
Final Thoughts: Should I Work With a Lawyer?
When starting a business, it’s natural to feel a bit overwhelmed by all the contracts and legal details. The good news is that not every contract requires a lawyer’s involvement, but some definitely do. For more straightforward contracts, like a basic Commission Agreement or Non-Disclosure Agreement (NDA), you might be able to handle them yourself using templates or resources available online.
However, when it comes to more complex contracts, like a Partnership Agreement, Franchise Agreement, or Intellectual Property Assignment Agreement, it’s wise to consult with a lawyer. These contracts involve intricate details and can have long-term implications for your business, so getting professional legal advice ensures that everything is clear, fair, and legally sound. Working with a lawyer for these important agreements can save you from potential headaches down the road and give you peace of mind as you build your business.