Via The Next Web:
While all freelancers should use a contract, how it works in their business and the reasons why they should use a contract vary. The reason to use a contract in your freelancing often boils down to the need to protect yourself, your work, and your business. Some contracts even go as far as protecting the client should things head south. I feel a healthy combination of both is the best objective to not only protect yourself but to also make the client feel more at-ease and comfortable working with you.
One way to use the advice is to review contract templates you come across. When you do that, you can continually develop a contract tailored to your business.