I have a prospective client who requested a cancellation clause in the agreement I sent them. I've searched for an example of one but can't find what I want. Does anyone put a cancellation clause in their contract, in case the VA or the client wants to end the relationship before the agreement is finished?

Also, if they enact the cancellation clause, do you request that they pay the balance of the agreement, or do you let them off the hook? I've no idea how to handle this situation. Any help would be appreciated.

Thanks!

Sam

The terminology I use is "termination". Here's the wording I use: "The Company (Client)may terminate the use of the Contractor's services at any time without cause and without further obligation to Contractor except for payment due for services prior to date of such termination."

Keep in mind, treat the client the way you want to be treated. I am willing to pay for services rendered, but I'm not willing to pay for work not accomplished. I wouldn't expect a client to pay for something and receive nothing in return.

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Mary Hettwer
Hettwer Virtual Office

Thank you Mary,

That was very helpful. I hadn't thought of a termination clause, but I can see where in some cases it might be beneficial to have one.

I completely agree with Mary - in respect to any 'balance' on the agreement. If it's for services already rendered then you should expect to be paid.

I think it's also important to include a bit of language related to deposits [if you take those] given the possibility of a client terminating the working agreement before work has even begun [or YOU wanting to do the same] - you'd want to consider and iterate what happens to the deposit.

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Yes, I have concerns in this area also. I agree with paying for work done but any other suggestions regarding the timing..like maybe xx days notice or something instead of immediate? Can only imagine being able to set up a handful of retainer clients only to have several of them terminate their contracts in the same week...just thinking

I have a 30-day termination notice for both parties (for myself and the client) in my contracts. I collect a deposit and hold that for the life of the contract. So when a contract is terminated, I use that last month's deposit to cover the final month before the contract is terminated.

30 days give the client time to find another VA (if they desire) and gives me time to find another client so I can keep a steady income stream.

So far it has worked out quite well. I did have one client who terminated before 30 days but she told me to keep the deposit. (I returned it anyway minus the time I worked for her.)

I also state in my contract that I do not refund any pre-paid fees.

Janine

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Thank you for the info! This helps for when I write up my contract.