Contracts

How do you use a contract for services correctly?

A Contract for Services (OVO) sets out in writing the work a freelancer or self-employed professional performs for you, for what remuneration, and under what conditions — thus preventing ambiguity and disputes. A good OVO contains clear...

Published on May 4, 2023 by MKBjuristen.nl
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A Contract for Services (OVO) formally records in writing the work a freelancer or self-employed professional performs for you, for what remuneration, and under what conditions — thus preventing ambiguity and disputes. A good OVO contains clear agreements regarding the assignment, payment, liability, independence, and intellectual property. Below, you can read what it should contain and what to look out for.

What is a contract for services and why do you need one?

A Contract for Services (OVO) is a written agreement between a client and a contractor regarding the work to be performed. This can be anything: developing a website, writing a text, or providing advice. An OVO is important because it creates clarity and prevents disputes, for example regarding the content of the work, the remuneration, or the duration of the assignment.

What is included in a contract for services?

A number of elements are indispensable:

  • who the client and who the contractor is;
  • what exactly the work entails;
  • how long the assignment takes;
  • the compensation, which costs are reimbursed and the payment terms;
  • agreements regarding liability and insurance;
  • the independence of the contractor;
  • possibly the intellectual property rights.

Tips for drafting or completing an OVO

To make the agreement clear, these tips will help:

  • Explicitly state that this is a contract for services and correctly fill in the details of both parties;
  • Clearly describe the activities and include a start and end date;
  • note the price and state whether it is inclusive or exclusive of VAT;
  • include expense reimbursements and payment terms;
  • make arrangements regarding the termination of the agreement;
  • refer to your general terms and conditions;
  • Register the intellectual property rights , for example, the copyright on the source code of a website.

When considering the self-employment provisions, pay attention to the risk of bogus self-employment: the paper and the practice must correspond.

Frequently Asked Questions

What is the difference between a OVO and an employment contract?

In a contract for services, an independent contractor works without a relationship of subordination, whereas in an employment contract, there is an employment relationship with subordination. The actual performance ultimately determines the classification.

Who acquires the intellectual property rights in an assignment?

Without an agreement, these often remain with the creator (contractor). If you wish to retain the rights (such as copyright on a website) yourself, explicitly record the transfer in the OVO.

Do I need to mention VAT in the agreement?

Yes, clearly state whether the price includes or excludes VAT to avoid disputes regarding the fee.

Can I use a standard OVO template?

A template can be a starting point, but adapt it to your situation and have it checked if in doubt, so that all important agreements are correct.

Need help with your contract for services?

Are you unsure about the agreements, or do you want to be certain that everything is properly arranged? We assist you in drafting and reviewing a contract for services and support you in any disputes arising therefrom.

View our engagement agreement or our expertise in contract law, and schedule a no-obligation intake meeting.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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