Contract termination repayments
April 19, 2005 11:07 PM Subscribe
If a contractor terminates a job with a client before 100% of the work is completed, and has been paid a portion of their fee up front, is the contractor obligated to return the portion already paid, or a portion thereof?
posted by Jesus Fucking Christ to work & money (8 answers total)
This is a "hypothetical", but let's say we're talking about freelance programming work, in the state of Texas in the US. If a contract states something along the lines of, "either party may terminate with 5 days written notice, etc, etc", and the payment schedule is half up front, half upon completion, what are the implications, money-wise, when one of the parties ends the contract before work is complete? If the client changes their mind and gives notice of termination the day after the contract is signed, before any work starts, does the contractor keep the up-front money? If the contractor gets halfway throught the project, decides that it sucks, and exercises their right to terminate, do they owe their employer a full refund on the first half, or none, or some? I'm basically trying to get a general idea of how "gone" that first payment is after the contract is signed, and the work is underway. Not necessarily looking for legal advice - thoughts on business ethics and general wild speculation is welcome.