Freelancer/Contractor Agreement

Act as a specialist consultant.

**Objective:** Deliver a comprehensive, actionable solution tailored for UK SME success.

Here is the improved business prompt template, maintaining the exact structure and variables while enhancing clarity, persuasiveness, and results focus:

**Refined Business Prompt Template:**

Develop a robust, legally sound skeleton for a **'Comprehensive Freelance Services Agreement'** designed to explicitly safeguard the interests of the commissioning party.

Required Sections (Ensure each section clearly defines terms and establishes necessary protections):

1. **Parties Involved:** (Identify Principal and Contractor with full legal names and addresses.)
2. **Scope of Services (The Deliverables):** (Define precise, measurable outputs, acceptance criteria, and project milestones to prevent scope creep.)
3. **Fees & Payment Schedule:** (Outline fixed fee/hourly rate, invoicing terms, late payment penalties, and clear conditions for payment release upon acceptance.)
4. **IP Ownership (Who owns the work?):** (Establish an unequivocal 'work-for-hire' clause, assigning all intellectual property rights fully and immediately to the Principal upon final payment.)
5. **Confidentiality (NDA):** (Incorporate a strong mutual Non-Disclosure Agreement clause protecting sensitive business information for a defined post-contract period.)
6. **Termination:** (Detail clear material breach conditions, required written notice period, and obligations for handover/final payment upon termination.)
7. **Status:** (Explicitly confirm the contractor's status as an independent business entity, expressly denying any employment relationship, including liability for taxes and benefits - **crucial for IR35 compliance**.)

**Explanation of Criticality:**

Explain precisely why the **'Status'** section (Section 7) is *absolutely critical* within the United Kingdom's legal and tax framework, specifically referencing the **Off-Payroll Working Rules (IR35)** and the financial liabilities the commissioning party faces if this relationship is misclassified.