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How to cover yourself in freelance work

 
 
Reply Fri 16 Apr, 2004 09:33 am
I have a friend who is doing freelance work for a person who is incorporated. He wants to know legally how he can cover himself, or at least feel more secure that he will get paid. The guy who he is doing the work for says he will pay him once he gets paid from a third party, the client. My friend is signing a contract with the guy today stating what he is doing and how much he is getting paid.

My friend has looked this corporation up and found the information, he has looked on the Better Business Bureau website and found no claims against the corporation, but the corporation has only been around since January of 2003.

Has he done enough here? Are there any other background sources that he could check out, or is there any other legal way to cover himself so that he is not defrauded?

Thanks in advance,

KC
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Noddy24
 
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Reply Fri 16 Apr, 2004 11:13 am
Good that he's getting the agreement written down and signed by both parties.

Unfortunately, if the client is a deadbeat.....

Perhaps small claims court? But no need to borrow trouble, yet.
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joefromchicago
 
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Reply Fri 16 Apr, 2004 11:26 am
Is your friend doing free-lance art work? If so, then he needs to figure out who will own the copyright to his work. One way to protect himself, then, would be to have copyright vest in him, to be transferred once he receives his pay.

If, on the other hand, he's just doing some non-creative work, then he has already taken the best precaution: he's signing a contract. The only other thing I could think of would be to take a security interest in some tangible asset of the corporation. In other words, the contract would look something like: "corporation grants free-lancer a security interest in (identified piece of property or interest, e.g. a number of shares of stock), which will be surrendered by the free-lancer upon payment of his commission." Not a foolproof solution, to be sure (the property itself might turn out to worthless), but at least it's something.
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kickycan
 
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Reply Fri 16 Apr, 2004 11:39 am
Thank you for the info. My friend wants to know if he can stipulate in the contract that if the guy doesn't pay him, my friend gets to bang his girlfriend. Laughing

No, seriously, this information was great. He thanks you, and I thank you.
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roger
 
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Reply Fri 16 Apr, 2004 01:14 pm
Re: How to cover yourself in freelance work
kickycan wrote:
The guy who he is doing the work for says he will pay him once he gets paid from a third party, the client.
KC


Uh, is your friend kind of dumb in other respects, too? This sounds a lot like "Loan me $50.00 and I'll pay you back, double, when my horse comes in." I mean, your friend is a sub-contractor, in essence, right? He is NOT a partner subject to a sharing of the risk.
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