Liability

Hello BHW,

As a freelancer how does a person go on selling their services without being liable? i.e. delays in finishing a web design project the client sues for failing to meet the deadline.

I have seen a post here on BHW regarding signing up a contract with a client, is this sufficient enough or are there more steps need to be taken? Also my business is not registered.

I apologize if this question has been asked before.

I think the level of risk taken here will make your question irrelevant to most.

Making a contract would in theory solve some of the problems. The reality is, if someone sues you and you are not incorporated, they are coming after you personally. Do yourself a favor, and set up an entity. That way, if you do happen to get sued, they can only come after your entity instead of your personal belongings.

When you write your contracts, make sure you have a specific set of terms and don't break them. Include some sort of clause for ALL possible scenarios, i.e. missing deadlines. But definitely talk to a lawyer about this, I am not in Canada and don't know the specific laws regarding freelancing.

The only way I could see someone suing you is if they had an existing site making money and you broke it. Unless they can prove a significant loss of revenue they really don't have much of a case. If you don't want to be 'liable' then put that in the contract. If you write it up with a lawyer and hand it over to a client then I doubt they would sign it unless it was for a very large sum of money. Just not worth the hassle.

I think that if your #1 concern is how 'not to be liable for delays', you won't be in business for long...

Your #1 concern should in fact be how to deliver the project on time.

In any event, to the point of your question; to the extent that you can contract your way out of a liability, a clause limiting damages to liquidated damages equal to X% of the sum paid to do the work would be reasonable for both parties would be appropriate, I should think.
Again, though - think about your priorities in this business... ass covering, or delivering great work on time?

I have news for you. When you run a business you are responsible and that is the way it should
be and will always be.