🐈
» Forums » Freelancers » Potential client has penalty amount if termin...
Page options
sparktec
Community Member

Potential client has penalty amount if terminating contract

Hello Experienced fellow Upworkers!

I need your guidance and help in sorting this out. Last week I had an interview with a potential client, who has send me a contract that needs to be signed, while going through the contract is see the following

 

TERM OF AGREEMENT
3. The term of this Agreement (the "Term") will begin on the date of this Agreement and will
remain in full force and effect indefinitely______, subject to earlier termination as provided in
this Agreement. The Term may be extended with the written consent of the Parties.
4. In the event that either Party wishes to terminate this Agreement,
that Party will be required to provide 14 days' written notice to the other Party.
5. If the Contractor terminates the agreement on their own less than 24 months from its inception,
he or she shall be liable for a $1500.00 contract buyout fee if the person would like to compete.

 

I feel point number 4 & 5 contradict each other. Please help me with your advice if this is a red flag or is it normal for this clause to be on contracts? What if the work isnt the same as in description?

Thanks
Kripa

ACCEPTED SOLUTION
feed_my_eyes
Community Member

Clients send me NDAs and non-compete agreements all the time that they just found on the Internet and haven't even read or understood, and 99% of the time, if I point out that a clause is unreasonable, they'll remove it. So, you could give that a try. (If they insist, then definitely don't work for them.) I would ask for the "14 days' written notice" BS to be removed as well.

View solution in original post

9 REPLIES 9
prestonhunter
Community Member

That's silly.

The client may not have written that. May have just downloaded it. Or maybe somebody else asked him to send that to you.

Doesn't matter.

 

You have better things to than to waste time with someone like that.

 

Or download the NDA, edit it, and sign a version without that clause.

It is completely unnecessary for clients to ask freelancers to sign something like this.

No it is not normal. Stay away from such clients. 

Absolutely not normal. I don't think 4. and 5. contradict each other, but that isn't the problem. This client promises to pay you $1,500 as a kill fee if they terminate the contract prior to two years of service?  That just sounds like scam city to me.

Maybe this is an outright scam. Or maybe it's just a very bad idea a lawyer somewhere wrote down, and a client copied or downloaded without reading it.

 

I have no idea.

 

But this is not how real work gets done.

 

Successful clients don't hinder dear their hiring efforts this way.

tlsanders
Community Member

Run away.

bobafett999
Community Member

Run away.  Most likely they will make your life miserable so you may want to get out before 2 years.  They basically want to hold you hostage. 

wlyonsatl
Community Member

And if the client makes your work for them unbearably difficult your only option is to terminate the project and pay them $1,500? I don't think so!

 

Just move on. There are plenty of good and great clients on Upwork. Do your best to find them.

feed_my_eyes
Community Member

Clients send me NDAs and non-compete agreements all the time that they just found on the Internet and haven't even read or understood, and 99% of the time, if I point out that a clause is unreasonable, they'll remove it. So, you could give that a try. (If they insist, then definitely don't work for them.) I would ask for the "14 days' written notice" BS to be removed as well.

sparktec
Community Member

Thank you all for the valuable inputs to my question! Its been great help!

Latest Articles
Featured Topics
Learning Paths