What can I do if a client cancels a contract early with no exit clause?

In those cases, you may be entitled to compensation for the work you planned to do or any losses you've already taken on. In some cases, this can include damages for lost profits or expenses you incurred while preparing to perform the work — so long as those losses can be reasonably proven. The goal is to make sure you're not left financially worse off because the client changed their mind.

Here are a few practical options businesses often try:

• Talk it through: Try to negotiate a fair settlement, such as a partial payment or cancellation fee.
• Document everything: Keep a record of your client's cancellation request and all communication about it.
• Review your contract: Other clauses — like payment schedules or dispute resolution terms — may still offer some protection.
• Plan for next time: Include clear early termination terms in future contracts to help avoid this issue again.

What to consider in your specific situation

Every contract dispute is different and may depend on:

• The type and scope of work or service provided.
• How the contract's payment or cancellation terms are worded.
• Local or state contract laws that apply.
• Communications or past agreements with the client.
• The overall impact of the cancellation on your business.

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