Contracts 101: What Every Nigerian Freelancer and Developer Needs to Know

Day 2 of my legal literacy journey focused on one of the most misunderstood but crucial topics in tech: contracts. Whether you’re freelancing on Upwork, working with local clients, or building a product with friends, contracts are your first line of defense. Let’s break it down. What is a Contract (and Why Should I Care)? A contract is simply a legally binding agreement between two or more parties. But in tech, it’s so much more than that. It defines: • What you’re doing • When and how you’ll get paid • Who owns the work you create • What happens if things go wrong If you’re working without a contract, you’re basically running on trust and that’s not scalable. Key Elements of a Valid Contract (Under Nigerian Law) To be enforceable, a contract generally needs: 1. Offer & Acceptance – One person proposes, the other agrees 2. Consideration – Something of value is exchanged (e.g. your time, their money) 3. Intention to Create Legal Relations 4. Capacity – Both parties must be legally capable 5. Legal Purpose – It must not be for something illegal Types of Contracts You Might Encounter as a Techie • Freelance Work Agreements – Outlining deliverables, milestones, and payment • Employment Contracts – With terms around hours, benefits, IP, and termination • Non-Disclosure Agreements (NDAs) – To protect sensitive information • Partnership or Co-founder Agreements – When building something with others What to Watch Out For Here are a few things that stood out to me today: • If the contract doesn’t say when you’ll get paid, that’s a red flag. • Avoid “Work for Hire” clauses unless you truly want to give up IP rights. • Make sure scope creep (extra features) is addressed. This is a common dispute source. My Personal Takeaway As a developer, I used to think contracts were just corporate fluff. But now I realize they are protective tools—especially for freelancers. They help avoid scope disputes, late payments, and ownership confusion. I’m working on drafting a simplified freelance contract later this week, and I’ll make it open-source. Resources I Checked Out • Contracts 101 – Nolo Legal Basics • LawPadi: Nigerian Contract Law Overview •Upwork’s Contract Terms Summary

Apr 16, 2025 - 10:31

Contracts 101: What Every Nigerian Freelancer and Developer Needs to Know

Day 2 of my legal literacy journey focused on one of the most misunderstood but crucial topics in tech: contracts.

Whether you’re freelancing on Upwork, working with local clients, or building a product with friends, contracts are your first line of defense. Let’s break it down.

What is a Contract (and Why Should I Care)?

A contract is simply a legally binding agreement between two or more parties.
But in tech, it’s so much more than that. It defines:
• What you’re doing
• When and how you’ll get paid
• Who owns the work you create
• What happens if things go wrong

If you’re working without a contract, you’re basically running on trust and that’s not scalable.

Key Elements of a Valid Contract (Under Nigerian Law)

To be enforceable, a contract generally needs:
1. Offer & Acceptance – One person proposes, the other agrees
2. Consideration – Something of value is exchanged (e.g. your time, their money)
3. Intention to Create Legal Relations
4. Capacity – Both parties must be legally capable
5. Legal Purpose – It must not be for something illegal

Types of Contracts You Might Encounter as a Techie
• Freelance Work Agreements – Outlining deliverables, milestones, and payment
• Employment Contracts – With terms around hours, benefits, IP, and termination
• Non-Disclosure Agreements (NDAs) – To protect sensitive information
• Partnership or Co-founder Agreements – When building something with others

What to Watch Out For

Here are a few things that stood out to me today:
• If the contract doesn’t say when you’ll get paid, that’s a red flag.
• Avoid “Work for Hire” clauses unless you truly want to give up IP rights.
• Make sure scope creep (extra features) is addressed. This is a common dispute source.

My Personal Takeaway

As a developer, I used to think contracts were just corporate fluff. But now I realize they are protective tools—especially for freelancers. They help avoid scope disputes, late payments, and ownership confusion.

I’m working on drafting a simplified freelance contract later this week, and I’ll make it open-source.

Resources I Checked Out
• Contracts 101 – Nolo Legal Basics
• LawPadi: Nigerian Contract Law Overview
•Upwork’s Contract Terms Summary