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Question

What are my options if a client cancels a project after I’ve started?

How can I protect my time and money when a client backs out after work has begun?

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Answer

When a client cancels after you've already started, it can feel unfair — especially if you've invested time, materials, or other resources. In many cases, what happens next depends on what's written in your contract.

Many contracts spell out how cancellations work. This includes whether deposits are non-refundable, what fees apply if a client cancels, and what happens to work already completed. If your contract says you can keep part of the payment, you may be entitled to do so.

If the client cancels without following the contract terms, that might count as a breach. In that case, you may be able to request payment for completed work or for losses you've already taken on.

Even without a written contract, you may still be able to recover the reasonable value of your work under legal theories like quantum meruit or unjust enrichment, though these claims are usually harder to prove.

To prevent problems in the future, stick to written agreements that include clear cancellation and payment policies — and consider requiring a deposit upfront.

What to consider in your specific situation

While these guidelines apply broadly, your outcome may depend on several details.

  • The wording of your contract's cancellation or refund clauses.
  • Whether a deposit was paid and if it's labeled "non-refundable".
  • The amount of work already completed or materials purchased.
  • Applicable state or local laws around contract cancellations.
  • Communications or written approvals between you and the client.

Since every project is unique, you can use Rocket Copilot to get legal information about cancellations, or connect with a Legal Pro to learn more about your options.

Published on 11/20/2025Written by Rocket Lawyer editorial staffReviewed by Legal Pros

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.

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Disclosures

  1. This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.