The end of the year is always that time where people are getting their ducks in a row, setting new goals, and doing everything they can to make sure they start fresh in the new year.
There’s just something about feeling like you have a clean slate, especially when you’re a business owner. If your year didn’t go quite like you expected or even if it was everything you wanted, it feels SO. GOOD. to flip the calendar and start new.
As a business owner, there’s a lot of things you can do to get your business ducks in a row and if I was sitting next to you right now, I’d remind you to make sure that one of those ducks is creating (or updating) client contracts for 2025.
The most fun thing on your list? Maybe not! But a super essential thing on your list that will ensure your business is protected from top to bottom? You bet.
A strong contract does more than outline expectations – it establishes trust, clarifies responsibilities, and safeguards your business against potential disputes.
So, whether you’re crafting brand new legal agreements or refreshing existing ones, this guide will walk you through everything you need to know to create client contracts that are effective, compliant, and future-proof.
Why Client Contracts Matter More Than Ever
First things first, I want to quickly touch on the why behind contracts.
Because you might be thinking… “Amber, you’re a lawyer. Of COURSE you’re going to say I need contracts in my business!”
And while yes it’s true that I’m deep in the legal world and think about this stuff all the time, I always remind people that I’m ALSO one of you – an online business owner and service provider.
Which means that like you, I have clients and customers that I’m working with on a daily basis and when you’re working with people, you need things to be in writing. ✍🏼
No verbal contracts around here. 🙅🏼♀️
Contracts have always been an important part of of business, but in my personal opinion, they’re more crucial than ever in 2025 for a few reasons:
Why Client Contracts Matter More Than Ever
First things first, I want to quickly touch on the why behind contracts.
Because you might be thinking… “Amber, you’re a lawyer. Of COURSE you’re going to say I need contracts in my business!”
And while yes it’s true that I’m deep in the legal world and think about this stuff all the time, I always remind people that I’m ALSO one of you – an online business owner and service provider.
Which means that like you, I have clients and customers that I’m working with on a daily basis and when you’re working with people, you need things to be in writing. ✍🏼
No verbal contracts around here. 🙅🏼♀️
Contracts have always been an important part of of business, but in my personal opinion, they’re more crucial than ever in 2025 for a few reasons:
Greater Protection
There once was a time where verbal contracts were a real thing and they may have actually even worked. But to put it bluntly, you really can’t trust everyone anymore.
You just never know when you’re going to encounter that one bad apple that could be detrimental to your business.
A well-constructed contract ensures both parties are clear on their obligations, reducing the risk of disputes. Without a contract, you leave your business vulnerable to misunderstandings, unpaid invoices, or unrealistic client demands.
Clarity
In today’s world, people like to set their own rules and it’s easy for people to assume what they can or can’t do when working or buying from you.
Contracts nip confusion in the bud and provide a clear framework for deliverables, payment terms, and timelines. Ultimately, they serve as a reference point if issues arise, helping maintain professional relationships.
Emerging Trends
And lastly, the world has simply changed (and will continue to) which means there will be legal shifts and new technologies over time which will change how businesses operate.
For example, remote work, data privacy concerns, and the integration of AI require specific terms in modern contracts. Keeping your contracts updated ensures they’re in line with current best practices!
Key Elements Every Client Contract Should Include
Now that you know WHY client contracts are important, let’s get into what exactly your contracts should include. If you’ve ever been on the receiving end of a contract, then you know they’re often paggggeeeeessss long.
And those pages are full of various clauses that you admittedly don’t know what they mean. And tbh, I can’t blame you. Most contracts are full of so much legal jargon that there’s no way a normal human that hasn’t taken the bar would understand.
But that’s not what I want for your contracts. I believe that the BEST client contracts are the ones that both you AND your clients can understand.
Sure, they might still be pages long full of various clauses, but the language doesn’t have to be difficult.
That’s how I’ve crafted every contract in The Contract Shop, including all of the Service Agreements based on industry.
Regardless of your industry, however, there are essential components that every client contract needs:
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Basic Details: Ensure you include both parties' names, addresses, and contact information and specify the contract’s start and end dates.
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Scope of Work: Define what you will deliver in precise terms. Ambiguity can lead to scope creep and unmet expectations.
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Payment Terms: Outline payment schedules, methods, and penalties for late payments. Transparency here prevents payment delays and disputes.
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Deliverables and Timelines: Clearly describe the services or products you will provide, including key milestones and deadlines.
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Termination Clause: Include conditions under which either party can terminate the agreement. This protects you if a client relationship becomes untenable.
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Refund Policy: Specify the circumstances under which clients are eligible for a refund, including any applicable timelines and conditions.
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Dispute Resolution: Specify how disagreements will be resolved, such as mediation or arbitration, to avoid costly legal battles.
It’s important to note that these aren’t the *only* clauses to include, but these are a few of the hardest working clauses that you 100% don’t want to skip.
How To Create or Update Your Client Contracts for 2025
So, whether you’re starting from scratch or revisiting existing contracts for 2025, here’s what I suggest:
1. Conduct a Contract Audit
If you already have existing client contracts in your business, take the time to review them and look for outdated language, missing clauses, or terms that no longer align with your business model.
2. Use Templates
If you’re implementing contracts for the first time, you *could* piece things together with things you find on Google OR you can simply start with a lawyer drafted template that’s designed specifically for your industry (That’s why our Contract Template Shop exists!)
3. Consult a Lawyer
If you want to go the extra mile to ensure that your contracts comply with the latest laws and protect your interests, it can be wise to have your contracts reviewed by your lawyer that’s familiar with your industry
4. Test for Clarity
Lastly, before you put your contract to use, it can be smart to ask someone unfamiliar with your business to read the contract. This can help you see if there’s anything confusing or misleading, so you have a chance to fix it before using the contract with clients.
Overall, client contracts aren’t just formalities – they’re essential tools for protecting your business and maintaining professional relationships. By updating your contracts for 2025, you ensure they’re legally compliant, technologically relevant, and aligned with your business’s goals!
Don’t wait until a problem arises to review your agreements. Start today so you can build a foundation for long-term success.
If you aren’t sure where to start, I’ve got you covered! Click here to browse TBL’s Contract Template Shop and find what you need.
And if you’re looking for ongoing legal support, that’s what The Legalzine is for – a monthly digital magazine designed to make legal compliance accessible, actionable, and fun for online entrepreneurs, coaches, and creative business owners.
Here’s to legally protecting your business in 2025! 🎉
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