When can a client walk away from a contract?

The security that comes with working contractually in Gainesville is knowing that your contracted partner cannot just walk away from your agreement. There are, however, certain methods through which your partner can choose to seek an end to your contract: Either "for cause" or "for convenience." Understanding the difference between the two is vital given that the reason cited affects how much you may be entitled to collect. 

A client may be able to terminate your contract for cause if it believes you have defaulted in meeting its terms. To cite breach of contract as reason for ending your agreement, your partner must first show that the supposed breach was material, or a failure to perform an essential element of it. When determining whether your supposed breach qualifies as such, the court considers factors such as: 

  • Did it affect a vital element of the essence or your agreement? 
  • Did it result in your partner receiving less than it bargained to recover? 
  • Did it defeat the general purpose of the contract? 

When no such cause exists for terminating a contract, then your partner is said to be ending it "for convenience." You might think this to be impossible, yet the law does afford this privilege specifically to government entities. According to the Federal Acquisition Regulations, a government body can walk away from an agreement if it is determined to be in its best interest. In such a case, you can only collect what is owed to you for work already done (or services already rendered). You can attempt to recover damages for breach of contract on the government agency's part, but to do so, you must be able to prove that it operated in bad faith when initially negotiating with you. 

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The Roberts Law Firm, P.C.

The Roberts Law Firm, P.C.
604 Green Street
Gainesville, GA 30501

Toll Free: 866-594-7535
Phone: 404-537-2796
Fax: 404-841-0775
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