Contract Question: Right to withdraw from contract at any time?

[The Curator]

Looking for those that either have agencies, OR as a freelancer, use contracts to define the scope of work.
Question: What terms allow the contract to be ended before the proposed work's completion date?

I have a prospective client that wants me to make changes to my contract, specifically limiting each phase in the marketing campaign to it's own miniature scope; so that if they were to back out during one of the phases, they would only be liable for the phase's costs that they're currently in (my contract indemnifies the client for the whole scope).

I don't really want to alter my contract, but wondering on what terms you allow unsatisfied clients to exit the agreement. Personally, I've seen agreements that allow no wiggle room, and full payment upfront, and then I've seen agreements that allow payment to be staggered with deliverables over the course of the campaign with monthly checkins.

The client sounds like a headache, but it's a huge case - and will take our agency into new fields...

 

[MikeyMikey13]

Each contract is different, read through your agreement - if it is in there, it is fair game for them. If not, then they are contractually bound, unless they dispute this but commercial law is different to consumer law so you should be okay.

Did you add any terms regarding early closure? For me, my early closure is full payment without VAT, and I have that as a term. If you don't have it, they can't simply withdraw.

Are they worth suing? How much is the full contract worth?

Source: 4 y of law school.

 

[TheAlmightyDada]

Each contract is different, read through your agreement - if it is in there, it is fair game for them. If not, then they are contractually bound, unless they dispute this but commercial law is different to consumer law so you should be okay.

Did you add any terms regarding early closure? For me, my early closure is full payment without VAT, and I have that as a term. If you don't have it, they can't simply withdraw.

Are they worth suing? How much is the full contract worth?

Source: 4 y of law school.

lol, I was about to tag you @MikeyMikey13 - hope you're doing well.

 

[MikeyMikey13]

lol, I was about to tag you @MikeyMikey13 - hope you're doing well.

I'm always ready for law questions lol.

 

[The Curator]

[QUOTE="MikeyMikey13, post: 10831390, member: 776967"

For me, my early closure is full payment without VAT, and I have that as a term. If you don't have it, they can't simply withdraw. Did you add any terms regarding early closure? How much is the full contract worth?
Yes, they simply pay the full scope of work dictated under the contract which can span one piece of content, to a 2 month PR campaign, to a 6-12 month SEO campaign - sometimes concurrently, so the scope can be often tens of thousands of dollars.

Are they worth suing?
Not sure I follow the purpose of this question. Could I sue the guy for backing out? Yes of course, if he signs the contract. The problem is, he's wanting to amend the contract to include potential release points along the campaign, so as not to be liable for the whole large contract should they not be happy with the degree of work delivered.

Another amendment they want us to include, that we didn't previously have in our contract,is one that makes us liable for any gross negligence...
[/QUOTE]

 

[MikeyMikey13]

[QUOTE="MikeyMikey13, post: 10831390, member: 776967"

For me, my early closure is full payment without VAT, and I have that as a term. If you don't have it, they can't simply withdraw. Did you add any terms regarding early closure? How much is the full contract worth?
Yes, they simply pay the full scope of work dictated under the contract which can span one piece of content, to a 2 month PR campaign, to a 6-12 month SEO campaign - sometimes concurrently, so the scope can be often tens of thousands of dollars.

Are they worth suing?
Not sure I follow the purpose of this question. Could I sue the guy for backing out? Yes of course, if he signs the contract. The problem is, he's wanting to amend the contract to include potential release points along the campaign, so as not to be liable for the whole large contract should they not be happy with the degree of work delivered.

Another amendment they want us to include, that we didn't previously have in our contract,is one that makes us liable for any gross negligence...

[/QUOTE]
Wait, so does your contract not stipulate what you are providing? Why can it be either of them, and not one particularly?

The reason I asked "are they worth suing" was not the question "can you sue them". It was is it worth it, do they have the cash, do you have the cash, are they local to your country etc.

Just don't amend the contract, say you are open to negotiations after this contract has finished (providing you aren't providing rolling contacts, which mean a new contract is legally created each month.).

And let them add the one in regards to gross neg, means nothing to an SEO. What expert are they going to get to show negligence, some local seo tech guy lmao. We all do it different so you haven't got anything to worry about. Gross neg only applies to stuff like accidents at work etc.

Remember, if a contract is worth tens of thousands, it might be smart to hire a solicitor to properly sort this. Yes they may cost a few k, but they could stop this guy worming his way out of these deals.

 

[pbmjohnassoin]

Looking for those that either have agencies, OR as a freelancer, use contracts to define the scope of work.
Question: What terms allow the contract to be ended before the proposed work's completion date?

I have a prospective client that wants me to make changes to my contract, specifically limiting each phase in the marketing campaign to it's own miniature scope; so that if they were to back out during one of the phases, they would only be liable for the phase's costs that they're currently in (my contract indemnifies the client for the whole scope).

I don't really want to alter my contract, but wondering on what terms you allow unsatisfied clients to exit the agreement. Personally, I've seen agreements that allow no wiggle room, and full payment upfront, and then I've seen agreements that allow payment to be staggered with deliverables over the course of the campaign with monthly checkins.

The client sounds like a headache, but it's a huge case - and will take our agency into new fields...

You dont have to change your contract, a contract is made and both sides should fullfill their ends. If one doesnt, that party would have to pay the penalty.