What are my rights if I entered into an independent contractor agreement with a client, as a business consultant but they are ending it 3 weeks later?

UPDATED: Sep 29, 2022

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What are my rights if I entered into an independent contractor agreement with a client, as a business consultant but they are ending it 3 weeks later?

The agreement was sent by the client and I agreed to the terms. It stated a 1 year contract, $250/month, plus an additional $75 for each “mobile app'”sold by sales reps (that I interviewed for client, advised/managed). Now, 3 weeks after I signed, the client is ending the agreement (due to personal issues; there is a 7 day clause for ending it). I put a lot of front end work into this assignment. What am I entitled to monetarily? I sent him an email and invoice for the remaining balance, but he replied with a very low dollar amount $550 to settle.

Asked on October 29, 2015 under Employment Labor Law, Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If, as you indicate, he is in breach of contract, you could sue him for that breach, for the remaining money due you under the terms of the contract; if a party violates a contract, he can be held liable for the all the amounts the other side would have been guaranteed to have received had the contract not been violated. It would likely make sense to settle at some level to avoid the time and cost of litigation; however, since suing in small claims court (assuming he is local to you) is very affordable if you are willing to act as your own attorney ("pro se"), you can afford to file a lawsuit and hold out for a better offer.

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