Can a client cancel a contract once work has started without paying a penalty?

If your agreement doesn't include a specific "termination for convenience" clause (which allows either party to end the deal without penalty), walking away for no reason could be considered a breach of contract.

That means you may be entitled to payment for any work you've completed. Depending on the contract language, you might also be able to recover other losses, such as prep costs, materials, or lost opportunities.

Even if your contract doesn't say much about cancellation, contract law often protects you when you fulfill your part of the contract but the other party does not.

What to consider in your specific situation

Every contract is different, and your rights depend on several factors, such as:

• The exact wording of your contract's termination or payment clauses.
• The stage of work completed when the client cancels.
• Any written communications or agreements about ending the project.
• State or local laws that govern contract performance and breach.
• The size, scope, and value of the project.
• Whether the damages you're seeking — such as lost opportunities — are recoverable in your jurisdiction. Some places limit these types of losses unless they were foreseeable and supported by the contract.

Since every situation is different, use Rocket Copilot to get legal information about cancellations, or connect with a Legal Pro to learn more.