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How to Effectively Manage Clients Who Won't Sign Cancellation Contracts

How to Effectively Manage Clients Who Won't Sign Cancellation Contracts

Let’s say you have a client who wants to cancel their contract with you and you've prepared a solid cancellation contract from The Legal Paige for them to sign. But here's the twist—they either ghost you or outright refuse to sign it. What now?! Does your original service contract still hold? Can you cancel without a formally signed cancellation contract? Let's talk about all these questions.

 

How to go about canceling the contract a different way.

Communication is key in any business relationship, and canceling a contract is no exception. While having a cancellation contract in place provides a clear framework for termination, and is the best way to cancel, sometimes a client simply will not sign it. So how do you address this? The first thing you should do is let the client know in writing that signing your cancellation contract is the formal way to terminate services with you. Remind the client multiple times (like at least 3!) of this policy and explain to them that you do not refund any money until the cancellation contract is signed.

 

If it becomes clear that they have either ghosted you or have outright refused to sign the cancellation contract for whatever reason, then you will want to confirm in writing (usually via email) that their contract has now been terminated. Why confirm in Writing? Verbal agreements may hold weight in some circumstances, but when it comes to canceling a contract, having written confirmation is crucial. A well-drafted cancellation email or letter serves as tangible evidence that both parties have agreed to terminate the original contract (even if now you are the one to unilaterally solidify that termination upon their request). It provides clarity, prevents misunderstandings, and helps protect your rights and obligations.

 

Here are some of the key things you will want to include in your cancellation confirmation email: 

  1. Clear Intent: State that your client is canceling the service contract pursuant to the Client Cancellation Clause. 
  2. Reference the Original Contract: Mention the date and title of the original service contract to provide a point of reference, making it clear which agreement they are canceling.
  3. Cancellation Date: Specify the effective date of the cancellation (this will be the date which they told you they wanted to cancel). This will determine when the termination takes effect and helps establish timelines for any further actions or obligations. Additionally, attach the original email or correspondence in which they requested to cancel the service contract. 
  4. Acknowledge non-refundable fees and payments: If there are any consequences or obligations associated with the cancellation, such as nonrefundable retainers or fees, mention them explicitly to ensure both parties are aware of their responsibilities. Additionally, make sure you are stating any refunds of fees they are entitled to and the way in which they will receive the fees. 

 

If you can follow these steps and keep all emails between you and your client as proof of cancellation, then you will be able to prove to a court that the client asked for and acknowledged the cancellation. While a cancellation confirmation email is a valuable tool when you are out of options, it's important to remember that it may not provide the same level of protection as a signed formal cancellation contract. When it comes to canceling a contract, the absence of a signed cancellation contract does not mean you are left powerless. Through effective communication and a well-drafted cancellation confirmation, you can terminate an agreement without having a formalized cancellation contract in place. 

Are you ready to take control of your contract cancellations? Look no further than The Legal Paige's Cancellation Contract Template! Our template is designed to simplify the cancellation process and protect your rights.

 

 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.
See our full disclaimer here.

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