Identifying who the contract applies to (the parties to the contract) is important – even if it seems obvious to the parties involved. Generally, a contract can only be enforced if it is clear who it applies to.  

How a contract describes the work is important. The work is not just about the outcome or the final product. 

Work can be performed in different stages and may include incidental things like meetings, site visits or rehearsals that go hand in hand with getting the work done.  

Contracts that do not clearly identify the work, or fail to factor in the incidental work, can result in arguments. For example, about whether the work is completed or whether somebody should get paid.   

In some cases, identifying the location of the work may be needed, e.g., live performances at particular venues. 

Many contracts may set out warranties and conditions that relate to the work. For example, about the work quality and how the work is to be completed, performed or delivered.  

A warranty is a guarantee. Some contracts will require a person to guarantee the quality or function of the work so that the other party has rights (such as to withhold payment or terminate the contract) if the guarantee is not met. For example, a writer may be asked to warrant that the literary work is original and free from plagiarism.

A condition is not the same as a warranty but may still be important in setting out how the work can be delivered in a way that is needed by the other party. 

Contracts can include terms about completion dates, the basis on which work will be accepted, and any responsibilities around equipment.  

Some contracts may also have conditions around exclusivity. For example, where a person is restricted from working in the same capacity for somebody else while performing the contract. 

Payment details are often a key term of any contract. Payments can include royalties, commissions, licence fees. 

Contracts can also include terms about the provision of a non-monetary benefits in exchange for the work supplied. For example, free tickets or hospitality. 

Payment details should include either: 

• specific payment amounts or non-monetary benefits
• how amounts or other benefits are to be calculated. 

Also see Fees, payment and pricing and Invoicing.

How and when a party is paid can be just as important as agreeing to a payment amount. This is particularly important if one party is carrying a financial risk in performing large amounts of work without income. 

When thinking about payment, it can be useful for a party to consider: 

• when the work is to be paid for — for example, on a particular date or when something is finished
• what will happen if payment is not made on time, or at all — for example, late fees or, if there’s a payment that’s due along the way, that the work will stop.  

There are many different payment structures (or terms) that can be considered. For example: 

• periodic progress payments
• advances or deposits
• payment on completion and by invoice
• the number of days after invoicing before the payment is due. 

It’s important to make sure the payment terms in a contract suit the type of work being supplied and the level of risk to the parties.  

Learn more about working out fees, payment, pricing and invoicing pages. 

Vik is an independent artist who works for herself.  

She has been commissioned to design and create a large sculpture by a company for the foyer of their building. Vik’s standard contract payment term provides for payment within 30 days of a job being completed.  

Vik doesn’t have enough money in her business to keep things ticking over without money coming in. It’s also risky for her to purchase all the materials up front without recouping those costs sooner rather than later.    

She negotiates payment terms that include: 

• 50% payment when the design and materials have been agreed
• 25% payment when the sculpture has been finished in the studio and inspected and is as agreed
• 25% payment when the sculpture is delivered and installed 

It is important for a contract to deal with who will be responsible for expenses. This is particularly important if expenses are variable and are not included in contracted price.  

Common expenses include travel and accommodation. 

Intellectual property rights in creative industries are extremely important.  

A contract can protect intellectual property rights and give value to what has been created. 

If a party is making a work to supply, it is essential that the contract deals with: 

• who owns the rights to that work
• how that work can be used (including by others). 

How intellectual property rights are protected and managed varies depending on the type of work and the industry.  

For example, publishing agreements may have more extensive terms about intellectual property that relate to: 

• how the published work can be used, sold or distributed
• whether any rights revert to the author. 

Learn more about intellectual property.  

It is essential for artists, creatives and organisations to understand IP rights so they can protect the value of their creative work. Protecting creative assets helps ensure creators and rights holders are paid and credited fairly.  

There are organisations that can help you work out what types of things a contract should cover for different types of work. 

Things don’t always go to plan in a working relationship.  

Having terms in a contract that relate to insurance and indemnity arrangements can be important if things go wrong.  

An indemnity is a form of insurance or security arrangement. It protects a party from legal liability if something goes wrong – for example, resulting from the contracted work. A party who wants the protection may ask the other party to have insurance to cover the cost of the indemnity. 

To work out whether an indemnity term is needed, it can be helpful to understand what could go wrong in relation to the contracted work.  

For example: 

• What happens if a party is unable to perform a live show because their equipment is lost or damaged?
• What happens if somebody is injured while interacting with an electrical art installation?  

Some types of insurance are required by law (such as workers compensation if workers are engaged). Other types are recommended or requested based on the needs of a party to the contract.  

Learn more about business insurance

In some cases, things will go wrong because of unforeseen or unavoidable events. For example, a natural disaster, war or an embargo.  

This can be addressed in contracts with a “force majeure” clause. A force majeure clause may excuse a party from performing what’s required of them under a contract because of the unforeseen or unavoidable event.  

A contract may identify what a force majeure event is and what the parties can do if it happens.   

A force majeure clause is common for contracted services or work that relate to outdoor events and the entertainment industry. For example, cancelling a live performance at an outdoor musical festival because of flooding. 

Many contracts are assumed to have a ‘natural ending’ if the work has been completed and paid for and there is nothing left to do.  

However, having a specific termination clause in a contract is vital if a party wants to exit at any stage because things are not working out.  

Some contracts will provide for:

• when a party can terminate the contract (such as in response to something happening)  
• the process they need to follow in terminating it (such as a notice period or a requirement for compensation to be paid to the other party).

Termination provisions and how they apply to the contracted work should be thought through and dealt with clearly. 

Like other relationships, parties in contractual relationships can have arguments and misunderstandings.  

That’s why it can be important for a contract to set out a process to deal with any disputes. If a contract will apply over a long period, a dispute resolution clause can be more important.

There may also be options to seek dispute resolution under other laws. See our unpaid invoices and contract disputes. 

Contracts will vary depending on the type of work, service or performance, and the industry.  

The type of industry and how certain services and works operate in practice may require a contract to contain certain conditions relevant to that industry. 

For example: 

• Film production – a television and film director’s agreement deals with how a director will be involved in the promotional activities for a production, along with how the director will be credited. 

• Live music – an Irish folk band have been invited to play at their local folk festival. As an addition to the performance contract, they provide the festival organisers with the band’s ‘rider’ (a document that sets out the band’s hospitality and logistical requirements for performing at the festival). 

The rider includes the band’s requirements for food and beverages, the type of equipment they will need from the festival venue for their performance, and extra tickets for family and friends.