Contract Termination

UPDATED: Oct 1, 2022

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Contract Termination

My company has been working on a project with a consulting firm but the project was
stopped because it was so different from what we wanted to achieve. Their
deliverables are not worth the project to us so we need to start from scratch again.
Do I have to pay for their works when terminating the contract? There is no
termination clause in the contract. I already have wasted my valuable time for this.
What would be the best way of handling this issue?

Asked on January 17, 2019 under Business Law, Indiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It depends on whether and to what extent and how you specified the deliverables. If what they did does not fall within the scope of specified or contracted for deliverables, you would have good grounds to not pay: by breaching the contract, or not delivering what they were contracted to deliver, they forfeit their right to pay under the contract.
But if their deliverables fall under the scope of what you contracted, then even if you are dissatisfied with them--even if you think it best to ignore what they did and not use--you'd still have to pay them as per the contract: the issue is, did they honor the contactual terms between you or not?
If the contract itself is vague on deliverables but there are other communications between you and them specifying what you told then you needed, those other communications can be used to define the scope of the deliverables for this purpose.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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