Contract Termination

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 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.


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