Contract: Compensation Issue-no cancellation clause (Independent Contractor)

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Sara007

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I am an independent contractor and until yesterday, was working under a contract to edit 4 chapters of a book for a client. He just told me that he does not want to continue as his editor.

The contract we signed in February specifies the per-page rate and covers up to 3 rounds of revision for each chapter, if necessary. A little more than half of the work has been performed under what is mentioned in the contract (Chapter 1: more than 50% [Client asked to stop work on that chapter and return to it later]; Chapter 2: 75%; Chapter 3: 30%-40%; Chapter 4: 0% [Client had not yet provided me with the final draft to be edited.])In addition, because the client did not follow the standard procedure and sent me a file (Chapter 2) that did not include track-changes, substantial additional work (not included in the contract) was also performed. I have two e-mails from him stating that he would pay for this work (one of them states his agreement with the fee I mentioned for the additional work). He also said in a meeting that he would pay for the additional work as well, and the contract specifically states that if the revisions involve substantial additions of text, compensation would need to be provided (but it does not specify how much).

To date, one large payment as a retainer has been made; the retainer was meant to cover the major part of the work, and a small balance was supposed to be paid March 2nd (but the client postponed work on Chapters 1 and 2 as he needed more time.) I did not do an amendment to the contract.

Also, there is no cancellation clause or language in the contract that spells out what is due in the event that the client would terminate my services, or if I would quit.

The issue now is that I need to send the client a final invoice for the balance due. My question is the following: Now that the client has terminated my services, do I have the right to charge him for the full value of the original contract (plus the fee for the additional work performed referenced above)? That is, given that I did not finish editing any of the Chapters because the client is not giving me the opportunity to do so, am I entitled to the full amount of the fee anyway? Or alternatively, do I only have the right to charge him for the work that has actually been completed?

I should also mention that in the last week as we've been having some issues, specifically with the work process and communication, I suggested (strongly suggested) to the client that we adopt a more systematic work process that I wrote up and sent him. I said that quite frankly if he wasn't willing or able to work on that basis, it might be necessary for him to look for another editor. I realize that this kind of statement could be interpreted as a condition for my continuing the work, but I didn't say that I was definitely quitting the project or when I would actually stop editing. I really hadn't decided, but I was serious about doing something about the very confusing, inefficient work process that was slowing down the work. In an e-mail, the client says I offered the option of not continuing, in a way trying to blame me. But I do have it clearly in writing from his side that he was the one discontinuing my services and that I was still willing to continue. To make matters worse, the client (who is a non-native English speaker confuses quite a lot of things, and is quick to try to use that as an excuse). But now that he has terminated my services, which has financial repercussions for me (and I also turned down other work in order to continue working on his project), I feel have to obtain what is my due.

So, can you please advise me on what I can legally charge this client, considering that he is not giving me the opportunity to perform all of the work covered by the contract? Thank you very much for your help.
 
When you showed your contract to an attorney in your state who was able to read it in full, and asked him that question, what did he say?
 
Thanks for the reply. Actually, I haven't shown the contract I've just mentioned to an attorney. But late last year, an attorney did help me craft certain parts of the agreement regarding the retainer, confidentiality, etc. Unfortunately, there was no discussion at that time of a cancellation or termination clause.

The agreement is actually pretty basic. It covers the rate to be paid per page, and the number of pages in each chapter. It includes a confidentiality clause. It includes the total cost for the work described in the contract, and the specification of 2 payments (as I said, the larger, retainer payment has been made, but the balance is outstanding). It also includes a provision that says that additional fees may be charged for work outside of the scope of the work described (and that part is fairly specific). Is there something else that you would need to know that would help answer my question? I realize that if there were a cancellation/termination clause, the answer would be there, but that isn't the case.

Again, given that there is no mention or inclusion of a cancellation or termination clause in the contract, I'm trying to determine if I have the right to charge the client the full value of the contract now that he has terminated my services.

If you or anyone has any advice on the matter, I would greatly appreciate it.

P.S. The contract was signed in the District of Columbia.
 
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Some things are not DIY projects. Your seeking to have the essential financial terms of your contract honored falls into this category.

Accordingly, you would be well served by retaining counsel to review the agreement and the related correspondence and to draft the demand letter. Especially considering that this matter may very well find its way into the DC Superior Court, you want all of your future correspondence from henceforth to harmonize with your contract rights to seek appropriate damages.
 
Thanks for your post, esteele

"Some things are not DIY projects. Your seeking to have the essential financial terms of your contract honored falls into this category."

Yes, you are correct. I should have had an attorney look at the full version of the contract before I entered into it with the client and may need one to help me now.

"Accordingly, you would be well served by retaining counsel to review the agreement and the related correspondence and to draft the demand letter." I am not sure that my final invoice can be considered a demand letter per se. The client actually told me to send him the invoice, so he is aware and accepts that he owes me something. I do not think I would have a problem getting him to pay for the work that has actually been done up until the date he terminated my services. However, as to the part of the contract (editing of chapters he is not giving me the opportunity to finish), that is something else. I may have to consult an attorney in any event.
 
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OP, for the sake of discussion, if you contracted to perform the editing project for $20X and the other party has paid you $10X, then you could arguably present him an invoice for the remaining $10X, the amount you would have earned under the contract had he not breached.

Change the hypothetical slightly. If the entire contract was for $20X, you have already undertaken $15X worth of editing work, and the other party had paid $10X to date, you may decide to submit an invoice for only $5X in order to resolve this situation quickly and avoid a hassle over the total amount due under the contract.

With that said, depending on the amount due and owing under the contract, it may be worth your while to pay an attorney a consultation fee and/or a couple of hours of time in order to line your ducks up in a row here.
 
Esteele, thanks for your post.

Of the two scenarios you presented, my thinking is in line with the first one--that is to charge the client for the amount I would have earned under the contract had the client not breached.

I was also able to speak briefly (unfortunately too briefly) to an attorney who didn't have the time to look over the full contract and other information, so I am going to try to consult someone else.

To be honest, there isn't a lot of money at stake here, but I do feel that I am entitled to the fee as originally agreed as I don't see anything in the contract or my other dealings with this particular client, written or oral, that would preclude that. At the same time, I would also like to resolve the matter asap and avoid further hassles, because I can tell you, working with this particular client was one hassle after the next.

Thanks again for your advice.
 
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