Consumer Law, Warranties Need Advice about Release of Claims in connection with Refund of Fee (Sample form?)

[Sara007]

My jurisdiction is: Washington, DC

I am a writer/editor and have a contract to product a document for a client. The agreement (contract) doesn't specify giving refunds, and in fact I have never been asked to issue one until now. A few weeks ago, the client was supposed to deliver some information I needed to produce the document and said that he would do it the following week. I didn't receive anything. Then last week I received a demand for a full refund from the client who expressed his dissatisfaction with my services, stating that he did not want to work with my anymore and that he did not want me to deliver anything more related to the work product (I had already delivered a partial draft document and was waiting for more input from the client to finish it.).

Although I felt that I was under no obligation to issue a refund, in the interest of putting this matter to rest, I send an email saying that I would refund 50% of the fee I had received contingent upon the client's signature of a document indicating his acknowledgement that this sum of money would be the only refund he would receive...something along the lines of a release. I have checked NOLO resources and have looked online for some kind of sample/model I could use for the release. Can anyone help? I really appreciate it.

 

[Sara007]

re: Release of Claims- Refund of Fees question-additional info/advice?

I forgot to mention that after the client received my e-mail indicating that I would only refund 50% of the fee, he tried to backtrack and said he would reconsider working with me. Considering he had insulted me in a previous communication and even said that the only reason he would reconsider was because he wasn't going to get a 100% refund. My thinking is to ignore the last e-mail the client sent because he already terminated my services and specifically asked that I not send anymore draft documents to him, requesting a refund. I think that it would be best for me to simply send the Release of Claims form for his signature so that I can issue the 50% refund and hopefully, be done with this matter. What do you think about that? I appreciate your advice. Thank you.

 

[dee_dub]

Go to Oncle and type "settlement and release" into the search field. Or scroll down and look under "Settlement Agreements" in the index. Most of them have way too much verbiage, but you can mash them up to suit.

Post back if you need help with the whereases and therefores.

 

[Sara007]

Thank you very much, dee_dub. Oncle has a lot of material; I think I can get some ideas, but I really want to keep it as simple as possible.

I've done a little research and may cobble something together from different sources. Based on what I've told you about the situation, would you agree that the release I send to my now ex-client should include the following?:

1) a release from all claims in connection with the work specified in our agreement (contract--to be described in detail).

2) that the amount of money (partial refund) I am granting in consideration of the release constitutes the sole refund.

3) that the release in itself does not constitute an admission of liability as per the services agreement (contract) I am not obligated to issue a refund or pay the ex-client any money (do you think this is suffcient? I have already told the client via an earlier e-mail that a partial refund takes into account the fact that I have already performed work under the agreement, which he has received).

4. the the ex-client (who will be "the undersigned" in the release) grants this release willingly.

5. that the ex-client will keep the terms of this release confidential (I have some doubt about whether or not it is worth including this. What do you think?

Please let me know if the above are the main elements I need to incorporate into a release of this kind.

Finally, the day after I e-mailed my ex-client telling him I would give him a partial refund in response to his message in which he terminated my services and requested a refund, he now says that he would "reconsider" working with me again even though he really doesn't want to (he said exactly that!), mostly because a partial refund won't cover the cost of hiring someone else. Unbelieveable. I am thinking about ignoring his latest message and will just proceed with the release and partial refund. Am I correct in thinking that as the ex-client sent an e-mail saying "I don't want to work with you anymore," and "Don't send me any more draft," technically he breached the agreement (there are no termination, cancellation, or refund clause in the original agreement) and gave up his right to any work product that he has yet to receive?

 

[Sara007]

Can anyone respond to my previous post - dee_dub or anyone else who is knowledgeable about these matters? I need to draft and send the release as soon as possible before the ex-client does something else. Apparently, he thinks he has the right to terminate my services and then say he'll "reconsider" working with me again; in his last e-mail he said as much and asked when i could send him more of the work product.

Thank you very much in advance for your help and advice.

 

[dee_dub]

Yes to all of the above. I would also add something to the effect of good and valuable consideration, the sufficiency of which is hereby acknowledged. I would also describe the work you did do and the amount he has already paid. I would also put in that you are released from any further obligations under the contract.

Am I correct in thinking that as the ex-client sent an e-mail saying "I don't want to work with you anymore," and "Don't send me any more draft," technically he breached the agreement (there are no termination, cancellation, or refund clause in the original agreement) and gave up his right to any work product that he has yet to receive?

Maybe. There's only one way to really find out, but I expect you don't want to go to trial. Arguably, it may have been an offer to terminate, which you had to accept before the contract was actually terminated, and which he has now revoked. Or something like that.

 

[Sara007]

Thank you very much, dee_dub.

The only point you mentioned that I don't understand is the part about "good and valuable consideration, the sufficiency of which is hereby acknowledged."

As for my second question, to some extent I see what you mean, but for all practical purposes, the ex-client terminated my services and did not offer me the possibility to resign voluntarily from the project. In my response to his e-mail terminating my services, I acknowledged that fact and also said that I did not want to work with him either (which in some sense, could represent acceptance of the "termination offer" if you consider it an offer to terminate rather than a unilateral decision by the client to terminate, which is how I interpret it.). We shall see what happens with the release of claims.

Thanks again.