Section Nine - Critical Provisions for Cancellation, Rescheduling, and Breach of Agreement
Welcome to Section Nine, one of the most pivotal parts of your contract. This section addresses cancellation, rescheduling, and breach of agreement. It’s essential for preventing disputes from escalating into litigation and ensuring that your business is protected. Let's dive in and explore each subsection to understand how to effectively manage these crucial aspects of your contract.
table of contents
Rescheduling
Cancellations
Termination
Breach of Agreement
Incapacition
Rescheduling Provisions
Rescheduling is about flexibility and fairness. It allows clients to change the timing of the services you provide while ensuring you are adequately compensated for any inconvenience or cost.
If you are going to allow the client to reschedule the services you provide, include the # of days notice that the client is required to provide in order to reschedule.
In unexpected scenarios, the other provisions in the contract will cover those
Cancellation Provisions
The cancellation section is crucial for defining the terms under which a client can cancel services and what compensation or refund they might receive. This is often a major source of disputes, so clarity here is essential.
It is strongly encouraged that you break your cancellation policy up into milestones.
Practical Steps:
Map Costs: Outline your costs and efforts at each stage of the project.
Define Milestones: Set specific percentages for refunds or payments due at each milestone.
Document Clearly: Ensure that milestones and related payments are clearly documented in the contract.
Example Clause: "If the Client cancels the services: Within the first quarter of the agreement, the Client forfeits the initial payment and must pay 25% of the total contract value. Within the second quarter, the Client must pay 50% of the total contract value. In the third quarter, 75% of the total contract value. In the final quarter, the full contract value is due."
Termination
Termination covers the end of the agreement under specified conditions, while the breach of agreement and the option to cure allows the defaulting party a chance to rectify their breach before further action is taken.
Termination clauses are automatically built into all Creative Law Shop® contracts.
Breach of Agreement
Selecting “Yes” to add in the Breach of Agreement section, will include the “Option to Cure” verbiage, which provides a window for remedying breaches.
Incapacitation
This is particularly needed when the contracted services are for an event of some kind.
It is recommended to always include this provision.
By carefully considering and customizing these provisions, you ensure that your contract can handle cancellations, rescheduling, and breaches effectively, thus minimizing potential disputes and protecting your interests.