I learned (the hard way of course) not only the importance of having such an agreement/contract in place, but also having it setup to protect ME. My first client had worked with many VAs (should have been a red flag for me). So he already had an agreement he used. Unsuspecting me read it and signed it. It didn't seem unreasonable. What I didn't realize was that it totally protected him and offered me nothing.

Once I no longer wished to be his VA and he decided not to pay my final check I took him into collections. The collections service I worked with was great and offered me this advice.

"Have something in your agreement/contract that specifies that if the client does not pay, not only will the client be repsonsible for the amount due but also any collection or legal fees incurred to collect those payments."

I ended up giving 20% to the agency to collect my money and because I did not have anything in my contract specifying the above, it was a loss for me. Another lesson learned.

I like the idea of having the client work with you in forming the agreement. What I did with my current client was had a draft of my agreement ready and allowed him to add to it. He did not modify anything on my draft but added some things that they require because of the nature of their business. Worked out great for both of us. I feel much better about it too.