EMPOWERING FREELANCERS: LEGAL PROTECTIONS AND

STRATEGIES FOR SAFE CONTRACTS

CONTRACT – 1

SUBMITTED BY SUBMITTED TO

DR. SONI BHOLA

ANINDITA GOGOI
ASSISTANT PROFESSOR
ROLL NO. 1517
FACULTY OF LAW
SEMESTER 2ND

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 DECLARATION

I, ANINDITA GOGOI, a second semester BA LLB student of National University of Study and
Research in Law, Ranchi, hereby declare that the project titled “EMPOWERING
FREELANCERS: LEGAL PROTECTIONS AND STRATEGIES FOR SAFE CONTRACTS”
under the guidance of SONI BHOLA ma’am, faculty of law, is an original work. I have made
sincere efforts to complete this project and have not done any misrepresentation of fact or data.

I declare that the statements made and the conclusions drawn are the bona fide outcome of the
research work. I further assert that, to the best of my knowledge and belief, proper references
have been given and does not contains any work that has been submitted in any other university.

Anindita Gogoi

Semester 2nd

Roll no. 1517

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 AKNOWLEDGEMENT

Firstly, I would like to thank my teacher and mentor Dr. Soni Bhola Ma’am , who showed faith
in me by providing such an excellent topic. Her constant guidance has played a vital role in the
successful completion of this project. Her keen attention helped me deal with each problem that
I faced during this paper successfully. , I extend my appreciation to all the participants and
respondents who generously shared their time and insights, contributing significantly to the data
collection process.
I thank everyone who played a role, no matter how big or small, in the completion of this research
paper. Their contributions have been invaluable, and I am deeply thankful for your assistance.

With utmost sincerity

Anindita Gogoi
Roll no. 1517
Semester 2nd

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 TABLE OF CONTENTS

DECLARATION ......................................................................................................................................... 2
AKNOWLEDGEMENT ............................................................................................................................. 3
ABSTRACT ................................................................................................................................................ 5
1. INTRODUCTION: FREELANCING AND THE YOUTH PERSPECTIVE ..................................... 6
2. EXPLORING THE DYNAMIC WORLD OF FREELANCING IN INDIA .................................... 7
3. THE DARK SIDE OF CONTRACTS: COMMON SCAMS IN FREELANCE AGREEMENTS .... 9
4. SAFEGUARDING FREELANCERS: THE ROLE OF THE INDIAN CONTRACT ACT ............ 10
CONCLUSION ......................................................................................................................................... 15

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 ABSTRACT

In the ever-changing world of freelancing, the attraction of flexibility frequently coexists with the
hidden dangers presented by deceptive contracts. This research explores the safeguards provided
to independent contractors by the Indian Contract Act (ICA), highlighting important clauses that
enable them to resist dishonest business practices. It reveals common strategies used by dishonest
customers, including as scope creep, missing money, bait-and-switch offers, and the sneaky free
work scam. The study emphasizes how crucial it is to draft precise and thorough contracts that
include project specifics, deliverables, and safe payment methods like escrow services in order
to safely negotiate this complex terrain. In addition, it highlights how important it is to develop
a strong personal brand by actively networking, requesting references, and exhibiting one's
abilities in order to draw in credible customers. The study also emphasizes how important it is to
continue studying in order to keep up with changing fraud tactics and industry trends. It
encourages independent contractors to follow their gut feelings and use caution by leaving tasks
that don't seem right soon. Freelancers can confidently start their independent careers by
adopting these proactive and knowledgeable measures, which will guarantee both their
professional success and stability in the constantly changing world of freelancing.

Keywords: Freelance, The Indian Contract Act, deceptive contracts

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 1. INTRODUCTION: FREELANCING AND THE YOUTH
PERSPECTIVE

Offering one's abilities and services to clients on a contract basis without being committed to a
long-term employer is what defines freelancing as a form of self-employment. A person who
pursues a profession without a long-term commitment to any one employer is simply called as a
freelancer1. Freelancers benefit from this arrangement's flexibility and autonomy, which lets them
take on assignments as they choose and set their own hours. The word "freelancer" emphasizes
the ephemeral nature of the profession; it comes from the idea of a medieval knight who may sell
his lance to the highest bidder. This type of job is common in many businesses, especially those
that are involved with the arts and culture, such website development, app design, and music and
movies. Young people are drawn to freelancing because of its freedom and possibility for
additional income2. A lot of young people are drawn to freelancing as a part-time career since it
allows them to make money while pursuing other goals like education or hobbies. Those looking
to balance work and other facets of their lives find it appealing to be able to work remotely and
on a project basis. Furthermore, young individuals can explore their creative talents and passion
projects outside of typical work structures by freelancing. The emergence of internet platforms
and technology has further democratized freelancing, enabling young Indians to interact with
clients anywhere in the world.
Freelancing does, however, come with some considerations and difficulties. Among
the frequent challenges experienced by freelancers include irregular income, unstable
employment, and the necessity for networking and self-promotion. Furthermore, in the absence
of appropriate legal safeguards and carefully drafted contracts, independent contractors can be
open to nonpayment or disagreements with customers. When navigating contractual agreements,
freelancers can benefit greatly from legal assistance since it provides clarity and protection for
all parties. When it comes to contract drafting and comprehending legal rights and obligations in
freelance relationships, Indian lawyers can offer invaluable advice3.

1
“Freelancer.” Merriam-Webster Dictionary, 15 Apr. 2024, www.merriam-
webster.com/dictionary/freelancer.
2
Clauses in Freelance Agreement - PATHLEGAL. www.pathlegal.in/Clauses-in-Freelance-Agreement-blog-
2124096.
3
Skuad. Freelancing in India - Payments, Filing Tax, Eligibility, GST and 44ADA. 8 Apr. 2022,
www.skuad.io/blog/9-things-you-must-know-before-you-start-freelancing-in-india

6
 The freelancing economy is growing in India, as more young Indians are entering
the international freelance market. The freelance industry in India is shaped by cultural, market,
and legal issues. The country's demands as well as the expansion of freelancing are the goals of
government initiatives and support programs. It is more crucial than ever for young freelancers
to understand their legal rights and seek counsel in order to safeguard themselves in contracts as
the freelancing industry grows.

2. EXPLORING THE DYNAMIC WORLD OF FREELANCING

IN INDIA

For many competent people, the freelancing sector in India is growing and presents a promising
alternative to traditional employment. This extensive manual seeks to illuminate the appeal,
difficulties, and well-known venues in the freelancing industry, enabling people to determine
whether this type of employment is a good fit for them. Uncovering the Allure of Independent
Work .There are many alluring benefits to freelancing for people who want more freedom and
flexibility in their work lives. By adopting a freelance mindset, one can liberate themselves
from the constraints of conventional office structures and create their own work schedule and
surroundings. Freelancers are the epitome of self-employment since they have the freedom to
choose the projects and clients they work on, giving them unmatched control over their
professional development. Furthermore, the alluring possibility of earning an infinite amount of
money depending on one's abilities and expertise beckons, providing financial independence
outside of the limitations of set compensation scales 4. Being a freelancer is not without its
challenges. People must be prudent and resilient when navigating times of financial upheaval
due to income fluctuation, particularly in the early phases of freelancing. In the midst of the
freeing autonomy that comes with freelancing, retaining productivity requires strong self-
discipline and time management skills. To further carve out a place in a crowded industry, the
art of customer acquisition necessitates smart self-promotion and networking dexterity. In
addition, since traditional companies normally provide retirement plans and health insurance,
freelancers are also responsible for obtaining these benefits on their own.

2.1 Examining Notable Platforms for Freelancing

It is crucial to have access to trustworthy and trusted platforms when navigating the freelance landscape.

4 Nasscom | the Trade Association of Indian IT BPM Industry. nasscom.in.

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Creative design and development aficionados can find a wide range of projects to display their talents on
Envato Studio, Fixnhour, and 99designs. In the meantime, Toptal5 is a leading marketplace handpicked
for elite independent contractors in the fields of technology, design, and business. While SolidGigs6 and
Truelancer7 provide complete centers for multiple projects across diverse industries, WorknHire8 and
Guru9 offer flexible platforms supporting a range of skills and jobs. Aspiring independent contractors
might also look into well-known websites like Fiverr10, Upwork, and Freelancer11, which all have active
freelancer communities and a sizable project library.

2.2 Starting a Career in Freelancing

Freelancing is a fundamental shift in the way people view work and employment, not merely a
way to make extra money. People can escape the conventional confines of a 9–5 work and design
a career that fits their particular talents, interests, and lifestyle choices by adopting freelancing.
The flexibility of freelancing appeals to a lot of people. Freelancers have the flexibility to plan
their workdays around their priorities and personal commitments since they can work from any
location with an internet connection and create their own timetables. People who have varied
hobbies and passions outside of work, such as parents, caretakers, and individuals, find this
flexibility very appealing 12. One more strong incentive for people to freelance is financial
independence. In contrast to traditional employment, where wage structures and fixed income are
common, freelancers can set their own rates depending on their expertise, abilities, and worth to
clients. Freelancers can reach new heights of income potential and stability by being able to
command greater rates and take on many jobs at once.
Additionally, freelance work provides a forum for artistic expression and creative liberty.
Freelancers have the chance to follow their hobbies and showcase their skills to the world on their
own terms, regardless of their profession—whether they are singers, designers, authors, or
photographers. Individuals can produce meaningful work that aligns with their particular vision
and values thanks to this artistic autonomy, which boosts job satisfaction and a sense of
fulfillment. Freelancing offers people a way to adapt and prosper in the face of rapid change in

5
“We Connect Expertly Vetted Talent With World-class Clients.” Toptal, www.toptal.com.

6 SolidGigs | Get Freelance Leads on Autopilot. solidgigs.com.

7
Hire Freelancers and Find Freelance Jobs Online - Truelancer. www.truelancer.com.
8
WorkNhire. worknhire.in.
9
“Guru.com - Find and Hire Expert Freelancers.” Guru, 4 Oct. 2023, www.guru.com.
10
“Find the Best Global Talent.” Fiverr.com, www.fiverr.com.
11
“Hire Freelancers and Find Freelance Jobs Online.” Freelancer, www.freelancer.com.
12
“Career Planning.” The Balance, 13 Sept. 2022, www.thebalancemoney.com/career-planning-6265513.
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India's dynamic professional scene. With the growth of digital technology and remote work,
freelancers are in a great position to take advantage of new opportunities and remain ahead of
industry trends. Independent contractors may maintain their competitiveness and adaptability in
the face of unpredictability by consistently improving their abilities, growing their networks, and
embracing innovation.13
In summary, freelancing is a lifestyle that enables people to take charge of their professional
future and goes beyond simply being a job option. With the ability to work independently, follow
their interests, and make ends meet, independent contractors in India are breaking new ground
and changing the face of employment in the digital era. For individuals brave enough to take this
independent adventure, the opportunities for professional advancement and personal fulfillment
are endless as the freelancing market develops and grows14.

3. THE DARK SIDE OF CONTRACTS: COMMON SCAMS IN

FREELANCE AGREEMENTS

3.1 The Shadowy Side of Agreements:

Typical Frauds in Freelance Contracts although working for yourself gives you flexibility and
freedom, there are hazards involved. Finding scams concealed in contract agreements is one of
the main worries. Here's a peek at a few of the more typical ones:
The Payment Disappearance Act: In this con, a customer consents to a project with a payment
schedule that looks reasonable. But after the job is finished and accepted, the client disappears,
leaving the freelancer without any money and no legal protection in the absence of a solid
contract.
The scope creep scam: It begins with a project that is well-defined, but it gradually grows as the
client makes demands that go beyond what was initially agreed upon. "Minor tweaks" have the
potential to escalate into substantial additional labor, and if the contract does not specify how
scope creep will be handled, the freelancer can find themselves working for free or at a drastically
reduced pay15.

13
Ibid.
14
Younger, Jon. “You’re Starting Your Freelancing Career: Here’s Help in Making Year One a Success.” Forbes,
7 Dec. 2022, www.forbes.com/sites/jonyounger/2022/12/06/youre-starting-your-freelancing-career-heres-help-in-
making-year-one-a-success/?sh=1662eaf1f043.
15
D’Cruz, Premilla, and Ernesto Noronha. Indian Freelancers in the Platform Economy: Prospects and Problems.
1 Jan. 2019, https://doi.org/10.1007/978-981-13-7111-0_10.

9
The bait and switch scam: It uses a large initial payment promise to lure freelancers in. But if you
look closely, the contract sometimes has a much lower total project charge that is buried in
legalese or complicated computations. Freelancers may become victims of this bait-and-switch
strategy if they do not thoroughly review the conditions of the contract before signing.

3.2 Phishing for Free Work:

Con artists may impersonate reputable companies and propose a project with a comprehensive
contract. But in order to evaluate the freelancer's abilities, the contract requires them to finish a
sizable "test project" for free. The scammer vanishes once the freelancer finishes the test job,
leaving the freelancer with nothing but time and effort lost 16.
These are only a few instances; con artists are always coming up with new
techniques. You may greatly lower your chances of becoming a victim of a scam and guarantee
a safe and prosperous freelance career by being aware of these frequent techniques and taking
precautions to protect yourself with precise, well-defined contracts, safe payment methods, and
a healthy dose of skepticism.

4. SAFEGUARDING FREELANCERS: THE ROLE OF THE

INDIAN CONTRACT ACT

Freelancers are often vulnerable to various scams and fraudulent agreements that can
have detrimental effects on their livelihoods. Common scams include non-payment for
completed work, requests for free work under false pretenses, and unrealistic task
assignments. These scams not only result in financial losses for freelancers but also
undermine their trust and confidence in the freelancing ecosystem. The Indian Contract
Act of 187217, however, offers a legislative framework to deal with these problems and
defend independent contractors' rights. The fundamental components of a contract, such
as offer, acceptance, consideration, and desire to establish legal relations, are defined by
the Indian Contract Act. It also describes clauses pertaining to fraud (section 17)18,
misrepresentation (section 18)19, duress, and void and voidable contracts. The Act gives

16
Leung, Wing-Fai, et al. “Freelancing Globally: Upworkers in China and India, Neo-liberalisation and the New
International Putting-out System of Labour (NIPL).” Edward Elgar Publishing eBooks, 23 Nov. 2021,
https://doi.org/10.4337/9781802205138.00015.
17
, The Indian Contract Act, 1872 (9 of 1872), Lexis Nexis.
18
Ibid.
19
Ibid
10
 freelancers legal recourse in situations where they have been tricked into accepting unfair
or fraudulent arrangements by declaring contracts entered into through deception or
fraud to be worthless20. Under the Indian Contract Act, freelancers who fall prey to fraud
or contract violations may pursue legal action. Contracting parties may utilize remedies
like injunctions, damages, and specific performance to make sure the other party is held
responsible for their acts. The Act offers a level playing field for freelancers in the digital
economy and strengthens trust and confidence in commercial transactions by respecting
the principles of contractual integrity and fairness. Taking preventative action is also
essential to shielding independent contractors from fraud and dubious contracts.
Thoroughly screening clients, putting terms and expectations in writing contracts, and
using dependable payment channels are all important practices for freelancers.
Freelancers can also profit from legal counsel and help when creating contracts and
handling client conflicts. Freelancers can reduce their vulnerability to frauds and
safeguard their rights under the Indian Contract Act by exercising caution and being
proactive.

Here are some ways the freelancers can protect themselves from the contractual fraud and
scam~

1. Valid Contract Formation (Sections 10, 13, 23):

➢ Sections 10 and 13: These sections define a "contract" as an agreement enforceable

by law and outline the essential elements - offer, acceptance, and consideration. A
clear and written contract based on the ICA principles ensure both the freelancer
and client has a documented understanding of the project scope, timeline, and
payment terms. This minimizes ambiguity and protects the freelancer's rights if
disputes arise21.

20
Misrepresentation Under the Indian Contract Act. www.legalserviceindia.com/legal/article-7817-
misrepresentation-under-the-indian-contract-act-.html.

21
D’Cruz, Premilla. “Partially Empowering but Not Decent? The Contradictions of Online Labour Markets.”
Critical Perspectives on Work and Employment in Globalizing India, Springer Singapore, 2017, pp. 173–95.
Crossref, https://doi.org/10.1007/978-981-10-3491-6_10.

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 ➢ Section 23: This section deals with "consideration" - something of value exchanged
by both parties. In a freelance context, consideration typically involves the client
paying for the freelancer's services. A documented exchange of value discourages
clients from disappearing after the work is completed.

2. Breach of Contract and Remedies (Sections 39, 73, 74):

➢ Section 39: This section defines a "breach of contract" as the failure by one party
(client) to fulfill their contractual obligations.

➢ Sections 73 and 74: These sections deal with remedies available to the aggrieved
party (freelancer) in case of a breach.

o Section 73: This section allows the freelancer to claim "damages" -

compensation for financial loss suffered due to the breach. This could include
lost income, wasted expenses, or additional costs incurred.

o Section 74: In specific situations, the court may order "specific performance"
under this section. This compels the client to fulfill their contractual
obligations, such as accepting the completed work and making the payment.

3. Indemnity (Section 65):

➢ Section 65: This section allows a contract to include an "indemnity clause." This
clause protects the freelancer from financial loss if the client's actions cause any
damages. For instance, if a client provides inaccurate information leading to
rework and delays, the indemnity clause could hold them liable for the additional
costs incurred by the freelancer.

Limitations of the ICA22:

• Proof of Breach (Section 106): The freelancer needs documented evidence of the
contract and the breach to claim remedies under the Act (Section 106 outlines the
burden of proof). This can be challenging if communication primarily occurred
verbally.

• Time and Cost: Legal disputes can be expensive and time-consuming. This might not

22
The Indian Contract Act, 1872 (9 of 1872), Lexis Nexis
12
 be a practical solution for smaller projects.

Additional Recommendations:

• Freelance Platforms: Many online freelance platforms offer built-in dispute

resolution mechanisms. Explore these options before resorting to legal action.

• Secure Payment Methods: Utilize secure payment methods like escrow services to
ensure payment before completing the work.

• Legal Consultation: Consider consulting a lawyer specializing in contract law to

review your contracts and understand your legal rights better 23.

By understanding the relevant sections of the Indian Contract Act and implementing best
practices, freelancers can significantly strengthen their safeguards against scams.
Remember, a proactive approach through clear contracts and secure transactions is often
the best defense against potential exploitation24.

5. BUILDING A SECURE FREELANCING ENVIRONMENT: GOING BEYOND

THE LAW

The Indian Contract Act (ICA) offers legal recourse, but freelancers can do more to
minimize the risk of scams. Here's how to create a secure freelancing environment that
goes beyond just legal protections:
Importance of Reputation: A lot of platforms have built-in review and reputation systems. Be
sure to investigate possible clients before taking on a project. Seek for successful collaborations
and finished projects with other independent contractors. This offers insightful information about
the dependability of the client.
Platforms that provide escrow services should be used. When a client uses escrow, their money
is safely retained until the project is finished and accepted by the client. This protects against
clients disappearing once the job is completed.

23
Premilla D’Cruz, and Ernesto Noronha. “Positives Outweighing Negatives: The Experiences of Indian
Crowdsourced Workers.” Work Organisation, Labour and Globalisation, vol. 10, no. 1, Pluto Journals, Apr. 2016.
Crossref, https://doi.org/10.13169/workorgalaboglob.10.1.0044.
24
Noronha, Ernesto, and Premilla D’Cruz. “Indian Freelancers’ Experiences of Bullying on Online Labour
Markets: Insights Into Digital Workplaces in the Informal Economy.” Indian Perspectives on Workplace Bullying,
Springer Singapore, 2018, pp. 147–71. Crossref, https://doi.org/10.1007/978-981-13-1017-1_6.
13
Mechanisms for resolving disputes: The majority of platforms have built-in conflict resolution.
If a dispute does not resolve itself, consider these alternatives before pursuing costly legal action.
But be aware that the freelancer may not always receive the best result from platform-based
dispute resolution.
Payments Up Front: If you are a new client, you might want to ask for a milestone payment plan
or a modest payment up front. This lessens the danger of doing unpaid labor, particularly on
bigger projects.
Safe Payment Gateways 25: Make use of reputable payment gateways that provide protection for
both buyers and sellers. Steer clear of unofficial payment methods, such as personal bank
transfers, where money could be hard to get back.
Terms of Contractual Payment: Your contract should clearly state the terms of payment,
including the chosen form of payment, late payment penalties (if any), and due dates. By doing
this, it is made sure that everyone is aware of the expected payment.
Display Your Skills: Create a compelling online portfolio that highlights your knowledge and
abilities. This not only draws customers, but it also establishes your credibility and validates your
abilities.
Positive Testimonials: Ask happy customers for their positive testimonials. This social evidence
strengthens the legitimacy of your business and draws in new, more likely-to-be loyal customers.
Connect with Other Independent Contractors: Make contact with independent contractors in
your industry. Collaborate and establish a network of support. They may be able to put you in
touch with reliable clients and provide insightful advice.
Retain Your Knowledge and Skills: sites for Freelancing: There are a plethora of offline and
online sites that provide advice and best practices for successful freelancing 26. Keep abreast on
market developments and possible frauds aimed at independent contractors.
Legal Resources: Even for a one-time consultation, think about speaking with a lawyer who
specializes in contract law. This might assist you make sure your contracts are solid and better
understand your legal rights27.
Warning signs: Be cautious when dealing with clients who propose improbable deadlines,
unusually high or low pay rates, or demand upfront payments for "administrative costs." These

25
Ibid.
26
S, Patra, and Patra SK. “https://suntextreviews.org/doi/pdf/10.51737/2766-4589.2023.099.” Suntext Review of
Case Reports & Images, vol. 04, no. 06, SUNTEXT REVIEWS LLC, 2023. Crossref,
https://doi.org/10.51737/2766-4589.2023.100.
27
Cui, Zhijian. “The Impact of Switching Costs on the Outsourcing of Knowledge‐Intensive Business Processes.”
Decision Sciences, vol. 48, no. 1, Wiley, Jan. 2016, pp. 71–107. Crossref, https://doi.org/10.1111/deci.12211.

14
could be warning signs of impending fraud.
Communication Style: Observe the manner in which the client communicates. Uncertainty in
directions, persistent pressure, or lack of professionalism can all be signs of danger.
Step Out with Self-Assurance: It's okay to give up on a project if it doesn't feel right. Your abilities
and time are highly valued. Better opportunities that are both legitimate and considerate of your
work will present themselves.
Freelancers can greatly lower the likelihood of falling victim to scams by implementing these
preventative steps in addition to legal information to create a safe work environment. Recall that
the key to a profitable and secure freelancing career is to adopt a cautious and knowledgeable
attitude.

CONCLUSION

Though there are possible risks hidden in contracts, the freelancing market calls with
independence and power. This study clarified the protections provided by the Indian Contract
Act, emphasizing crucial provisions that enable independent contractors to avert fraud. We
examined common deceptive strategies such as scope creep, bait-and-switch offerings, the free
work phish, and the disappearing payment act. Clear contracts that specify project specifications
and payment terms should be given top priority by freelancers in order to properly navigate this
environment. Escrow services and other secure payment methods are crucial security measures.
Creating a powerful brand through networking, skill demonstrations, and endorsements draws in
real customers. You stay up to date on scams and industry trends by continuing your education.
Ultimately, you can start a successful freelancing career by following your instincts and turning
down dubious opportunities. Recall that the secret to launching a lucrative freelance career is
taking a proactive and knowledgeable attitude.

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