How to Write a Force Majeure Clause for Freelancers and Service Professionals: Protect Your Business from Unforeseen Circumstances
Learn how to write a force majeure clause for your freelance or service-based business to protect yourself from unforeseen circumstances such as natural disasters, pandemics, or client insolvency.
You've spent weeks working on a high-profile project, only to have the client cancel at the last minute due to unforeseen circumstances. You've lost valuable time, resources, and revenue. This is not an isolated incident - unforeseen circumstances such as natural disasters, pandemics, or client insolvency can happen to anyone. In this post, we'll show you how to write a force majeure clause to protect your freelance or service-based business from these unforeseen events.
Why this keeps happening
Freelancers and service professionals often underestimate the importance of including a force majeure clause in their contracts. This can lead to financial losses, damaged reputation, and stress when unexpected events occur. Without a clear force majeure clause, you may be left with little to no recourse when a client cancels or fails to pay due to unforeseen circumstances.
Real example
Sarah, a freelance writer, had just finished a major project for a client when the COVID-19 pandemic hit. The client immediately canceled the project, citing the pandemic as a reason. Sarah was left with a significant financial loss and no way to recoup her expenses. If Sarah had included a force majeure clause in her contract, she may have been able to negotiate a different payment schedule or even recoup some of her losses.
The habits that fix this permanently
These are the non-negotiables for getting paid reliably in your profession:
How to implement this step by step
Define What Constitutes an Unforeseen Circumstance
When writing a force majeure clause, it's essential to clearly define what constitutes an unforeseen circumstance. This could include natural disasters, pandemics, client insolvency, or other events beyond your control. For example, if you're a freelance photographer, you may want to include a clause that covers unforeseen circumstances such as severe weather conditions or equipment failure. Be sure to keep the definition broad enough to cover a range of potential scenarios, but not so broad that it becomes vague or difficult to interpret. For instance, 'acts of God' is a common phrase used in force majeure clauses, but it's essential to define what specific acts of God are covered, such as hurricanes or wildfires.
Specify the Actions That Will Be Taken
Once you've defined what constitutes an unforeseen circumstance, it's essential to specify the actions that will be taken in the event of such an occurrence. This could include delaying or cancelling the project, renegotiating payment terms, or even terminating the contract altogether. For example, if you're a freelance consultant, you may want to include a clause that outlines the steps you'll take if a client cancels due to unforeseen circumstances, such as providing a refund or offering alternative services. Be sure to keep the language clear and concise, and avoid using ambiguous terms or phrases.
Include the Clause in All Contracts
A force majeure clause should be included in all contracts to ensure consistency and clarity. This means that you should include the clause in every contract you sign, regardless of the client or project. This way, you can ensure that you're protected in the event of an unforeseen circumstance, and that your clients understand the terms and conditions of the contract. For example, if you're a freelance writer, you may want to include a force majeure clause in every contract you sign, to ensure that you're protected in the event of a client cancellation or payment dispute.
Negotiate the Clause with the Client
When negotiating a contract with a client, it's essential to discuss the force majeure clause and ensure that both parties understand the terms and conditions. This way, you can avoid misunderstandings and ensure that you're both on the same page. For example, if you're a freelance designer, you may want to negotiate a force majeure clause with a client that outlines the steps you'll take in the event of unforeseen circumstances, such as a project delay or cancellation. Be sure to keep the language clear and concise, and avoid using ambiguous terms or phrases.
Review and Update the Clause Regularly
A force majeure clause should be reviewed and updated regularly to reflect changes in the business or industry. This means that you should review the clause periodically to ensure that it's still relevant and effective. For example, if you're a freelance consultant, you may want to review your force majeure clause every six months to ensure that it's still aligned with your business goals and objectives. Be sure to keep the language clear and concise, and avoid using ambiguous terms or phrases.
The Becflow solution
Becflow's AI-powered contracts and payment links can help you write and include a force majeure clause in all your contracts, ensuring that you're protected in the event of unforeseen circumstances. With Becflow, you can automate the process of sending invoices and reminders, and even track payments in real-time. Don't let unforeseen circumstances catch you off guard - sign up for Becflow today and start protecting your freelance or service-based business.
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