Hi all - wondering if you all can act as a sounding board for me on a contract issue with a customer.
I run a tech agency and have a client I want to terminate. There is a one month contract of which roughly half of the work was performed. The client paid 5k up front and delivery would result in a second and final payment of an additional 5k.
The reason for the desire to terminate is simply because I can see the client is becoming a real pain to work with, looking to wrangle the maximum amount of work out of the relationship even if it’s beyond the scope of the contract or within interpretation but clearly beyond the spirit of the contract, and finding ways to show how we are not doing the job well in an effort to manipulate us even though the work quality so far is absolutely great. classic dream client!
I would rather accept a loss and move on rather than spend what would likely turn into an additional 3-4 weeks of work listening to how we are not doing enough even though we are doing quite a bit more than the spirit of the contract already. I am aware of the legal side such as breach of contract.
My question is on the negotiation side of exiting immediately. I was thinking to state something like:
Option A: transfer of all assets immediately including extras like install documentation etc. both parties agree no further payment will be made.
Option B: return the $5k and I do not transfer the work.
I don’t see the individual being able to claim any damages as this is a startup with a first time build and they don’t have any business yet. Would not put it beyond this individual however to come up with something. Ideally would like to be stern but fair.
Thoughts? How would you handle? See any potential issues?
Thanks a lot all. Appreciate your response in advance.