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What to Do if A Client Wants to Break a Contract

Burgoyne Law Offices Dec. 20, 2021

Signing a contract with a client sets out the terms that you and the client must meet. It’s imperative that both sides know their responsibilities and rights before they sign the contract. In most cases, contract terms are completed without incident.

There are times when a client may need to break a contract. You’ll have to look at the circumstances as a whole so you can determine what you need to do. Typically, working something out with the client is beneficial since it enables both parties to have a satisfactory resolution.

Listen to The Client’s Needs

There’s a chance that the client may need to break the contract for a valid reason. You don’t have to let them walk away without any recourse. Consider the reason they’re trying to break the contract and determine how the terms for ending the contract apply. This might provide you with a suitable resolution for your company and the client.

Offer Solutions

You’ll have to be firm in the solutions that you offer. This doesn’t mean that you have to allow them to just break the contract. Instead, it may include a restructuring of the contract. Think about how your company can address the client’s needs without losing money or the client.

Contracts are the backbone of a business. While it’s understandable that you may not want to allow parties to break contracts on a regular basis, there might be times when this is necessary. Reviewing the contract terms can clue you into what might be possible. Working with someone who’s familiar with these cases is imperative so you can learn your options for handling the matter. Your ultimate goal is to protect your business.