Hiring a service provider can feel like a HUGE ordeal.
You have to research candidates, interview prospective hires, and finally select someone for your dream team.
But once you’ve found that ideal person it’s gonna be smooth sailing, right?
It’s gonna be all butterflies and rainbows, right?
It’s gonna be easy peasy lemon squeezy, right?
Well, you’d hope so, but first impressions are not necessarily everything.
And just when you think you’ve got it all figured out, you might find that there is, in fact, trouble in paradise.
Maybe the contractor, coach, or new hire might not be the best fit in the end.
Maybe you’re not loving the quality of the work.
Maybe you’re just not getting along.
Or maybe your finances are too tight, and you can’t keep up with the monthly payments.
Regardless of what kind of situation you find yourself in, you might be considering breaking your contract with this person.
If you are, there are few things you should know. 👇🏽
1. Refer to the Original Contract
First things first, go back to the original contract and figure out what you agreed on back in the day.
Look for clauses on termination, pausing of services, refunds, and modifications to the contract.
Assuming that both you and the other person who signed the contract looked over it thoroughly before signing, fingers crossed there’s something in there that will help you.
Of course, you never want to consider the possibility of things not working out when you first start working with someone, but it’s important to agree on how this kind of thing should be handled.
If you like what you find in your contract with that person, then go that route. ✅
If not, then keep reading.
2. Keep Your Word or Suffer the Potential Consequences
Listen, we are not saying this to scare you, we are saying this to SAVE YOU the trouble that comes with breaching a contract.
You need to understand that you are legally bound to the terms outlined in your contract.
You must comply with them.
If you choose not to comply, you may find yourself in a breach of contract.
And friends, a breach of contract is just a slew of legal problems you do NOT wanna deal with. 🙅🏽♀️
We’re talking about expensive lawsuits, legal claims, credit-ruining collections attempts, legal demand letters, and more.
It’s just so much easier to stick to your word than to deal with a legal disaster … trust us on this one, sis.
3. Suggest a Change of Plans
Remember: You entered into this contract with another human being, not an emotionless robot.
So, be honest about the situation and see if you two can work something out by proposing a modification or release of contractual obligations.
It’s really important to leave this interaction feeling confident that you acted with everyone’s best interests in mind — and as always, lead with kindness.
Something that will make this interaction WAY easier is if you are clear with what you want.
Decide what your ideal outcome is and make that known to the other person since you are the one initiating the break in contract.
Here are two ideas to get you started.👇🏽
4. Downgrade Your Package
Let’s say you’ve signed a six-month contract for $5,000 per month.
You are three months in, but things are just not working out.
You’re scrambling to make payments and are feeling like you don’t actually need the level of support you are paying for.
That’s totally fair.
You can only learn this kind of stuff by trying.
Good for you for investing in your biz. Now take it a step further and get the services you actually need.
In this situation, we would recommend propsosing to the other party that you downgrade to a smaller package.
Maybe for the next three months, you can downgrade to a $3,000 per month package. That saves you $6,000 and a whole lotta stress, girl! ✨
This will require less of the service provider’s time and would suit your needs and financial capacity.
Plus, this helps you avoid breaching the contract, and this type of modification can help you preserve the relationship you have with that service provider.
5. Take Care of the Outstanding Balance
Here’s another sitch you might find yourself in.
You are three months into a six-month contract and the vibes are off.
You’re not loving the service and you just want out.
However, you’re supposed to pay the service provider $5,000 per month for the next three months. That’s $15,000 you’re gonna lose on a service you don’t even want anymore. Yikes! 😳
On top of that, you signed a contract saying that you agree to pay the remaining balance, even if you decide to terminate the agreement. Double yikes. 😳😳
It never hurts to approach the other party and let them know that you no longer wish for them to complete the next three months and that you would like to settle the outstanding balance of $15,000 with a payment of $7,000. And in doing so, it will release you both of any financial or legal obligations.
Hey, you never know until you try, right? They might agree to it.
Be open to negotiation, too.
Remember, this is a human being you’re dealing with. And people are very reasonable when you treat them with kindness and respect. 💛
No matter what, if both parties do end up deciding to modify the existing contract, always make sure you get the new terms in writing.
❌ No exceptions. ❌
Remember, as a business owner, your reputation and integrity are everything.
You don’t want to become known as the kind of person who can’t keep their word.
If you’ve made a contractual commitment, abide by the terms of that contract.
If things are not going as planned with a service provider, always do what’s necessary to amicably and professionally leave the relationship.
No need to burn any bridges over this stuff!
While the world is a really large place, the entrepreneurial world is quite small. Word travels fast, so don’t get a reputation for being sketchy with your contractual obligations.
Work on becoming known for being someone with deep integrity who is committed, honest, and great to collaborate with.
Sometimes that’s gonna cost a little cash, but it will ultimately benefit you in the long run.
If you’re currently looking for a little extra help in making some changes to a contractual agreement in your business, look no further.
Coaches & Co. has a mini-bundle that includes a Contract Modification and Release Addendum.
If you just read all that legal jargon and thought, “WTFFFF??!!,” don’t stress. That’s our job.
This bundle will guide you through getting all the important info down on paper to protect you in any contractual modifications you need to make.
To make a long story short, it will help you have what you need in writing.
Remember, respect and honesty go a long way when it comes to these tough conversations, and with this mini-bundle from Coaches & Co., you’ll feel prepared and confident the next time you find yourself in a business breakup!
You’ve got this. ✅
Check out our ready-to-use, lawyer-approved, plug-and-play legal templates! So you can stay profitable AND protected ✨
Not sure where to begin? We’ve got you. Jump into our FREE 20-Minute Contract Crash Course to get the legal lowdown on everything contracts! (Heads up: It’ll forever transform the way you view your client relationships!)
*The information presented in this blog post is for educational & informational purposes only. This should not be a substitute for customized legal advice from a licensed professional in a private setting. If you need legal advice, please consult with an attorney. This is not a law firm.