How and When to Use a Rescheduling Contract

If you are a service provider chances are you have probably had a client reschedule. When shifting directions at a moment's notice, you should have strategic tools to ensure smooth transitions and flexibility. One tool that needs to be in your legal toolbox as a business owner is a rescheduling contract. Let's get into the ins and outs of a rescheduling contract, why you need it, when to utilize it, and the key components that make it an invaluable asset in your business.

What is a Rescheduling Contract?

A rescheduling contract is a standalone agreement that replaces the original service contract. Essentially, a rescheduling contract terminates the previous agreement and cancels all prior written and oral commitments and obligations. A rescheduling contract is usually used under these two circumstances: 

• Clients HAVE NOT finalized a rescheduled date but want to transfer their payments to a new date sometime in the future and want to cancel their original date, or 
• Clients wish to split services, such as instead of hosting a large wedding they decide to elope and later host a reception. 
  
  

How To Use A Rescheduling Contract

The rescheduling contract is essentially a hidden cancellation agreement, but instead of canceling the relationship or event as a whole, you are just canceling the original contract and the original event date in order to transfer the payments to a future date. With a rescheduling contract, you are enabling your client the ability to retain fees paid as credit for a certain period. It ensures that any fees paid by clients up to the contract's issuance date are documented in writing, whether it's a retainer, additional fees, or the full payment, and how those payments transfer to a new date. It’s a really slick way to create thankfulness with your clients and give them a pressure release valve when the ‘uh oh’ situations occur so they don’t completely lose their entire retainer with you.

Transferability of Retainer/Deposit/Fees Paid Section:

One of the main sections in your rescheduling contract should be the “Transferability of Retainer/Deposit/Fees Paid Section”. This section outlines the fees paid by clients and the duration for which the credit will be held, typically ranging between 6-12 months. You want clients to notify you of their new date within a specified timeframe, so they are not just holding a credit with you for years and years. Typically if clients cannot decide on a new date after a reasonable period they would forfeit all fees paid and all credit. This forces indecisive clients to make a decision on what they want and prevents you from being left in the lurch. Once clients have finalized a new date that is when you would create a new contract reflecting the new date and credit used (at which time that new service contract would supercede the rescheduling contract).

Rescheduling policies will range from business to business so you should modify your rescheduling contract based on the individual client circumstances and your business practices. This includes whether you will be charging a rescheduling fee, whether clients will be forfeiting their old retainer and much more. This flexibility allows for adjustments, such as limiting credit use to specific years or incorporating price increase clauses for rescheduling into the next calendar year if, say, your service prices end up increasing quite significantly and you want to be paid at that higher rate.

Additional clauses that should be in your Rescheduling Contract including the following: 

• Company’s Release of Contractual Obligations: Releases the service provider from contractual obligations on the original contracted date, dates, or date range.
• Mutual Release of Claims: Preventing legal action by both parties related to the previous contract.
• Representations and Warranties: Verifies the legal capacity and understanding of all parties entering into the contract.
• Confidentiality: Maintains mutual agreement confidentiality of this rescheduling agreement. This clause will help keep whatever you decided for this particular client and rescheduling situation between you and them. This clause however DOES NOT prevent clients from writing reviews on the service they have already received from you. You also shouldn't be putting a non-disparagement clause in your rescheduling contract. Focusing on exceptional service and exceeding client expectations should be the focal point in your client relationships. To learn more about why you shouldn't be using a non-disparagement clause to prevent reviews check out this blog HERE. 
• Venue & Jurisdiction: Specifies the location for dispute litigation and enforcement.
• Severability: Safeguards the contract's validity in case of invalid clauses.
• Counterparts/Facsimile Signature: Acknowledges the validity of electronic signatures when sending the contract online and executing it in different parts (they sign then you sign at different times).
  
  
  

Now that you know the ins and outs of a rescheduling contract you are ready to streamline your rescheduling process and enhance your client relationships. Take the next step in offering flexibility and getting legally legit by utilizing TLP's Rescheduling Contract.

Additionally, TLP has everything else you may need when it comes to client contract changes and cancellations. Make sure you have a cancellation contract at your fingertips. Need to understand more about cancellation contracts check out this blog HERE!

THIS BLOG POST IS NOT A SUBSTITUTE FOR LEGAL ADVICE. EVERY SITUATION IS DIFFERENT & IS FACT-SPECIFIC. A proper legal analysis is necessary based on your location and contract. Consult an attorney in your home state for advice regarding your contract or specific legal situation.

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