Interesting presentation by Mike Monteiro (with assistance from his lawyer) on how to deal with clients that do not pay for your services. I think most of us have been in one or many of the situations described in the video… this may have been something you observed at a company you worked with or perhaps your own personal experience as a freelancer. Non paying clients sure take the fun out of creative services, 3d animations, flyers, websites, etc.
In short, contracts are important – they must have clear definitions, clear expectations, explicitly stated and agreed by both parties. I can see how one may not want to use a contract (afraid perhaps) because its an animation you always wanted to do, or the company you always wanted to work with as a freelancer, etc., but from what they describe in the long run it is better to have one, than not.
Enjoy! and if you have any situational stories that you want to share with others please post them here (please no company names, just describe the situation and how you dealt with it) I am sure there are many that could benefit from your experience.