Client Agreement Termination Guide

Summary

As a sole proprietor in Kentucky, you can terminate a client agreement and membership by documenting communications, offering a goodwill refund, and obtaining written confirmation from the client. Ensure you adhere to your terms of service and keep thorough records. If the client disputes, remain professional, reiterate the agreement terms, and consider consulting a local attorney for guidance. Issue refunds and remove the client from your community only after receiving confirmation.

Full Conversation

I am a sole proprietor in Kentucky and had a 6 month agreement with a difficult client that lives in Florida. I fulfilled and exceeded my obligations in the agreement. The client wrote an email stating they decided to cancel the sponsorship agreement and that since he paid recently for this month he wants to finish up the month. Even though our agreement states there are no refunds under any circumstances I would like to refund and terminate our agreement. I just wanted to be sure I did this in a way that would prevent any future issues. Should I upload the agreement and his email here?
Hi ****! You don't need to upload the agreement and email here. To proceed safely:
- Document your communication with the client regarding the refund and termination.
- Clearly state in writing that the refund is a goodwill gesture, not a change to the contract terms.
- Obtain a written confirmation from the client accepting the terms of termination.
Would you like assistance with drafting this communication?
Yes please
Sure, ****! Here's a draft for your communication:
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Subject: Termination of Sponsorship Agreement
Dear [Client's Name],
I hope this email finds you well.
As discussed, I understand your decision to cancel our sponsorship agreement. Although our agreement specifies no refunds under any circumstances, I am willing to offer a refund for this month as a goodwill gesture.
Please confirm receipt of this email and acceptance of the termination terms by replying to this message.
Thank you for your understanding and cooperation.
Best regards,
****
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Feel free to adjust this draft to better suit your situation. Let me know if you need any further assistance!
Oh and as a sole proprietor I also have an online business community that offers a free and paid membership subscription. He stated in the previously mentioned email that he intends to stay as a paying member but I want to remove him from my private online community. I am willing to also refund this months membership fee of $* even though my terms of service states there are no refunds and that I (the owner of the community has the discretion to remove members). Can I do this and can you modify this email to reflect that?
Case Rating: *
Hi ****,
Yes, you can remove the member from your community as long as you follow your terms of service. Here’s a modified draft of your email:
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Subject: Termination of Sponsorship Agreement and Membership
Dear [Client's Name],
I hope this email finds you well.
As discussed, I understand your decision to cancel our sponsorship agreement. Although our agreement specifies no refunds under any circumstances, I am willing to offer a refund for this month as a goodwill gesture.
Additionally, I have decided to remove you from our private online community. I will also refund this month's membership fee of $*.
Please confirm receipt of this email and acceptance of the termination terms by replying to this message.
Thank you for your understanding and cooperation.
Best regards,
****
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Feel free to adjust this draft to better suit your situation. Let me know if you need any further assistance!
If this person decides to be troublesome, is there anything I may need to be prepared for or any additional steps I could or should take?
Case Rating: *
Hi ****! To be prepared for any potential issues, consider the following steps:
- Keep all documentation: Save all emails and communications with the client.
- Review your terms of service: Ensure you are adhering strictly to the terms.
- Consult a local attorney: If you anticipate any legal challenges, getting professional legal advice may be helpful.
Would you like any specific information on Kentucky laws related to your situation?
Does the goodwill gesture of the refund help my case if he did decide to pursue any legal action?
Case Rating: *
Offering a goodwill refund can show your willingness to resolve disputes amicably, which might be viewed favorably if legal action is pursued. However, it doesn't completely protect you from potential legal claims. Keep thorough records of all communications and consider consulting a local attorney for specific advice.
Is there any other aspect of your case you need help with?
Should I issue the refund and remove him from my community before sending this email?
Case Rating: *
Hi ****! It's a good idea to issue the refund and remove him from your community after sending the email and receiving his confirmation. This ensures clear communication and documentation of his acceptance.
Would you like assistance with anything else related to this matter?
What happens or what should I do if he doesn't accept and wants to keep discussing or arguing this?
Case Rating: *
If the client doesn't accept your terms and continues to argue:
- Remain calm and professional in your responses.
- Reiterate the terms of your initial agreement.
- Document all interactions.
- Consider consulting a local attorney for further guidance.
Is there anything else you'd like to know about handling this situation?
What if the client writes back and states they don't accept the terms and would like to finish up the month they paid for? But I do not want to do this.
Case Rating: *
Hi ****! Here are some steps you can take if the client insists on finishing the month:
- Reiterate your terms of service and the original agreement.
- Politely but firmly communicate that you are terminating the agreement and offering a refund.
- Document all communications.
- If the client continues to be difficult, consider consulting a local attorney for personalized advice.
Would you like any more specific information or assistance?