What it is
This clause lets one party (usually the client) end the contract without breach, often on short notice. Reasonable clauses require 14–30 days' notice and payment for work completed. Aggressive clauses let the client cancel immediately and pay nothing for in-progress work.
Why it matters
If you've turned down other work or staffed up for a project, a same-day cancellation with no kill fee can be devastating. A fair clause requires meaningful notice and pays for work-in-progress.
Sample clause language
"Client may terminate this Agreement at any time, for any reason, with no obligation to pay for work not yet delivered."
What it really means: Total client power, zero protection for you. Add a notice period (14–30 days), payment for work-in-progress, and a kill fee if cancelled before milestone delivery.
Red flags
- Immediate termination with no notice
- No payment for work in progress
- No kill fee or cancellation fee
- Only the client can terminate
- Forfeits already-paid deposits
Fair / acceptable
- 14–30 day written notice required
- Payment for all completed and in-progress work
- Kill fee equal to next milestone or % of remaining contract
- Mutual termination rights
How to negotiate
- Require 30 days written notice
- Get paid for all hours worked through termination date
- Add a 25–50% kill fee on cancelled milestones
- Make termination rights mutual
Frequently asked questions
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Not legal advice. For informational purposes only.