Disclaimer: This is general information, not legal advice. Consult a lawyer or legal aid service for formal guidance. Especially in Australia, where contract law can bite hard.
Why this matters
Right now in Australia:
- a 17 year old just signed a contract they didn’t understand, maybe for a music gig, casual job, or a freelance video edit.
- a smart coder just accepted a contract that allows the company to reuse their code in every app—without paying them another cent forever.
- a content creator unknowingly handed over all rights to their videos forever, in every format, including things that haven’t been invented yet.
They’re not idiots.
They just don’t understand contracts.
Never trust a lawyer unless you’re paying them, and even then it’s wise to check what you’re signing
Lawyers aren't inherently evil, but contracts are written by people paid to protect the other side, not you. Here’s how bad contracts work:
- They’re written in legalese, not plain English
- They hide traps in long clauses and obscure terms
- They’re sent over as a formality for you to sign urgently
- You end up giving away your time, rights and profit potential by default.
You won’t be in dispute no, but you very could be in a few short years.
Tips for dealing with contracts
Good tips:
- Take your time!
- There’s no legal requirement to sign anything instantly or at all.
- You can absolutely suggest amendments, even with massive companies. They might even respect you more if you do.
- Many Australian contracts are governed by Fair Work principles, IP law, or consumer protections—so even if they say X, it may not be enforceable. (Remember this)
- You can absolutely get help from organisations like.
- Arts Law Centre of Australia
- Legal Aid (in every state)
- Australian Small Business and Family Enterprise Ombudsman.
If someone is pressuring you to sign a contract immediately, you should pause and just consider your circumstances fully before making a decision. If a deal falls over because you want to do due diligence - then it wasn’t a very strong deal.
Some common traps
Here’s a list of example things that could go wrong when signing a contract:
What could happen | How you flip it |
They own everything you create while you work for them | Contractor retains IP rights; client recieves licence to use deliverables. |
Employer granted rights into perpetuity | You grant a license valid for 2 years with an option to renew |
They ask for unlimited revisions on a job | You include 2 rounds of revisions, and extra work billed at $X / hour. |
They say they’ll give you something with ‘best efforts’ | You say ‘reasonable efforts’ or an ‘agreed timeline’ |
They add a non-compete meaning you cant work for anyone else for a significant period of time. | You say, limited to 3 months - in line with Victorian Law - and they have to pay you for it. |
They ask you to Indemnify Them - and take the risk if something goes wrong. | You say Mutual indemnity capped at the total contract value. |
They say Net 30/60/90 days which means you’re a free bank for them. | You say 50% upfront, 50% on delievery within 30 days and an interest clause if late. |
They add a Termination for Convenience Clause. Meaning they can end the contract at any time and you get nothing. | Ask for 14-30 days notice + a kill fee if terminated. |
They add a governing law that’s in another jurisdiction. So if anything goes wrong you have to sue them in an unfamiliar jurisdiction. | You say: Governing Law, Victoria Australia and suggest local mediation and arbitration. |
This list is not exhaustive but it gives you a good idea of what you’re up against.
Every contract is different. The key thing you need to understand is, what risks does the contract present you, and what risks do you want protected.
You really should get advice when signing contracts of significance.
The important elements of a contract
Contracts don’t have to be long and complex to be good contracts.
At an absolute minimum (and this is not legal advice) these are the things I look for:
Parties: It’s super important to know who is contracting.
- ✅ “Between Tim’s Creative Co. (ABN: 123…) and ACME Pty Ltd (ABN: 456…)”
- 🚫 Never list just your personal name without a business name/ABN
Scope: Be specific precisely what you are offering to do under the scope of the contract—unless it is time and materials and open ended.
- ✅ “Design a 5-page website including homepage, contact, gallery…”
- 🚫 “Creative services as required”
Payment Terms: Be specific with how payment works. Don’t accept vague terms, or timelines that are not definitive.
- ✅ “$2,000 flat fee. $1,000 deposit. Balance due on completion.”
- 🚫 “Subject to client approval” or “after publication”
Timings - Put key dates on agreements so you know when it starts and ends.
- ✅ “Delivery by 12 July 2025”
- 🚫 “ASAP”
IP Ownership
- ✅ “Client receives non-exclusive, perpetual license. Creator retains copyright.”
- 🚫 “All rights assigned to client”
You also want to look at how the contract can be broken and the level of liability awarded in the contract, and the jurisdiction its written in, and the dispute mechanisms it calls for.
For freelancing work it could look like this
This Agreement is made between [Your Business Name & ABN] and [Client Business Name & ABN].
1. Services: [List what you’re doing]
2. Payment: $X total; 50% upfront, 50% on completion
3. Revisions: 2 rounds included; further charged at $Y/hr
4. Ownership: Creator retains copyright; client receives license
5. Termination: 14 days’ notice by either party; kill fee applies
6. Jurisdiction: This contract is governed by the laws of [Your State]
Signed:
[Your Name / Client Name]
Date: [Insert date]
If you want templates, go and ask for help. You could look here:
- Arts Law Centre of Australia for creative contracts
- Business.gov.au for small business templates
Please get advice here.
Obvious red flags
- No legal ABN or business name
- They want your “full rights” for free
- Payment terms are subject to something else you dont control
- They want you to work with no contract and trust it’ll be signed later
- They won’t consider any negotation around terms
If they won’t reasonably negotiate it’s a red flag.
And never ever just let them say it’ll be all ok. That’s just company policy. They won’t hold you to it. If you sign the contract. You sign it.
Think of a contract like a relationship. Be careful who you get into bed with. They might be a lunatic.
- Listen to your gut.
- Do you trust the person you’re talking to?
- What is the nature of the relationship?
- Contracts are legally enforceable, and every time you sign one with a big company, they have way more power than you because they can afford to litigate.
What you should do as an absolute minimum:
- Read every contractual clause.
- Ask yourself why that clause exists.
- Get guidance if you dont understand what a clause does.
- Mark the terms you dont like, and document why.
- Propose reasonable amendments.
Then see what they say. If there’s no risk in the relationship, then are they really the right people to work with?
Conclusion
Understanding contracts is essential for protecting your rights and interests in any professional arrangement. Take the time to read thoroughly, negotiate fair terms, and seek advice when needed. Remember that your work has value, and a good contract acknowledges this while establishing clear expectations for all parties. By approaching contracts with knowledge and confidence, you can build professional relationships that are both profitable and sustainable in the long term.
Disclaimer: this is not formal legal advice. It’s supposed to be directionally educational to the types of issues you might face. Don’t rely on this in any way, and get proper advice.