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What is Active Under Contract?

What does 'active under contract' mean? Learn what active contractual status requires, how it affects your freelance obligations, and what rights and protections both parties have during an active engagement.

Active Under Contract

When a freelance engagement or B2B agreement is described as "active under contract," it means the contractual relationship is currently in force — work is being performed, payments are being made (or are due), and both parties have active obligations that they are expected to fulfill. Think of "active under contract" as the in-play state of a business relationship. The contract has been signed (or accepted), performance has begun, and neither party has exited. This is the phase where deliverables are created, invoices are issued, and the real work of the engagement happens.

What "Active Under Contract" Requires

For Freelancers When you are active under contract, you are expected to: - Deliver the work — on time, per the scope and specifications in the contract - Communicate proactively — flag delays, scope questions, or blockers before they become problems - Meet quality standards — as defined in the contract or reasonably implied by the engagement - Invoice accurately — matching the contract's billing terms, milestones, or rate structure - Maintain confidentiality — per any NDA or confidentiality clauses in the contract - Be responsive — to reasonable client communications within a professional timeframe For Clients When active under contract, the client is expected to: - Provide access and information — needed to enable delivery - Give timely feedback — especially when the contract specifies review windows - Pay on time — per the contract's payment terms (e.g., Net-30 from acceptance) - Not unreasonably withhold acceptance — of deliverables that meet the contract's specifications - Honor revision limits — or pay extra for revisions beyond what's contractually included

Active vs. Other Contract States

| State | Description | |---|---| | Active under contract | Contract is in force; work is being performed | | Contract executed (not yet active) | Signed but performance hasn't started | | Suspended | Work paused — often due to non-payment or force majeure | | Completed | All deliverables accepted; contract fulfilled | | Terminated | Ended early per the termination clause or by mutual agreement |

Billing While Active Under Contract

One of the practical advantages of being active under contract is that billing becomes systematic. The contract defines: - Payment triggers — milestone completion, time period end, acceptance of deliverables - Payment terms — Net-15, Net-30, etc. - Late fee provisions — what happens if the client pays late - Invoicing requirements — format, PO reference, supporting documentation When you're active under contract, every invoice you send is backed by the enforceability of that contract. If a client fails to pay, you're not relying on goodwill — you're relying on a binding agreement.

Scope Creep: A Risk During Active Performance

One of the most common problems freelancers face while active under contract is scope creep — when clients request additional work beyond what the contract specifies, without agreeing to additional compensation. Your contract is your shield against unpaid scope creep. When active under contract: - Reference the scope language when a client asks for additional work - Issue a change order or supplemental agreement before doing out-of-scope work - Track time carefully if you're on a time-and-materials basis

The Bottom Line

Being "active under contract" means you're in the performing phase of a binding business relationship. Both parties have clear obligations — and both parties have protections. As a freelancer, understanding what active status requires helps you deliver professionally, invoice confidently, and protect yourself when clients try to expand scope without expanding compensation. Key Takeaways: 1. "Active under contract" means the agreement is in force and being performed 2. Freelancers must deliver per scope; clients must pay per the contract terms 3. Scope creep is a key risk — use change orders for out-of-scope requests 4. IP ownership during active performance is governed by the contract's IP provisions 5. Eonebill helps freelancers manage active contract billing with automated reminders Manage your active freelance contracts and invoices — Try Eonebill Free View Pricing → | Glossary Home → | Home →

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Frequently Asked Questions

"What does 'active under contract' mean?",

'Active under contract' means the contractual agreement between parties is currently in force and being performed. All parties are fulfilling — or are expected to be fulfilling — their contractual obligations. Neither party has terminated, and the contract hasn't expired or been completed.

"What are the freelancer's obligations when active under contract?",

When active under contract, a freelancer must: deliver work per the agreed scope and timeline, meet quality standards defined in the contract, communicate proactively about delays or blockers, maintain confidentiality per NDA provisions, submit accurate and timely invoices, and remain responsive to reasonable client requests within scope.

"Can a freelancer take on other work while active under contract?",

Generally yes, unless the contract contains an exclusivity or non-compete clause. Most freelance contracts don't restrict simultaneous work with other clients. However, the freelancer must honor their commitment to the contracting client — meaning delivering on time and meeting agreed standards take priority.

"What happens if either party wants to exit while active under contract?",

Either party typically can exit via the termination clause in the contract — usually with notice (e.g., 14 or 30 days) and potentially a kill fee or payment for work completed to date. Unilateral exit without following the termination provision is itself a breach of contract.

"Does 'active under contract' affect who owns the work being created?",

Yes. During active performance, the intellectual property provisions of the contract govern ownership. Many freelance contracts assign IP to the client upon full payment — meaning the freelancer retains ownership until paid, but cannot use the work elsewhere until payment is received.