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You can terminate an animation contract that you sign with the client. The legal agreement that you sign with your client is not engraved in stone. Before terminating the contract, you might want to check whether it has a termination clause. If you took time to form the animation contract template, you must have remembered including the termination clause.
A freelancer should keep in mind that there are possibilities of terminating an animation contract. Therefore, there is a need to spell out the possible elements that may lead to the deal's termination, such as time frames, accidents, or payment terms. These policies will help t protect the freelancer in case the agreement is not met adequately. On the other hand, the client will likely understand the circumstances upon signing the contract and perhaps maintaining the business relationship.
While creating the animation contract template, the freelancer should be specific and thorough to ensure flexibility and ensure they won't be held accountable for terminating the contract. The contract terms revolving around performing certain activities should provide room for reasonable termination without disclosing confidential information about the client.
Nonetheless, the following are the reasons that justify your decision to terminate the contract.
1. What to do if an animation contract template is impossible to fulfill?
It's possible to sign a animation contract template only to realize that it's impossible to fulfill. In law, you're justified in citing impossibility of performance as the main reason for seeking to terminate the contract. For example, if you encounter an accident that leaves you no longer capable of using your hands to create the animation, the client will have no choice but to agree to the request for termination. In such a situation, you would not be in breach of the contract.
The freelancer should ensure that the contract termination policy is established after negotiation with the client. This could be helpful when the client decides to disagree in the future. Some clients might misuse freelancers even when unforeseen circumstances have occurred. In such a situation, the freelancer might be held accountable if the agreement did not address the issue.
Therefore, freelancers should check out the consequences that may accompany the contract's termination and amend the policies accordingly to stay safe when you decide to discontinue.
If you discover that the client behaved improperly, then you would be justified in asking for a termination of the contract. If you discover that the two of you are guilty of committing the same mistake while signing the animation contract template, you would be within your legal rights in asking for its termination. If you want to terminate the contract for these two reasons, you would have a basis for doing that in law, as what you're doing is known as rescission.
Some clients are prone to fraud and misinterpretation when dealing with clients. For instance, freelancers can be forced to work under strict conditions or tight timeline. In such situations, the freelancer can decide to end the contract. However, the agreement should include the same rights that should be addressed before commencing the animation project.
3. Breach of contract in your animation contract template
If the client is guilty of breaching the contract, your demand for termination would be justified. According to Dictionary Law, Breach of contract occurs when the client refuses to do what he promised. Breach also occurs when the client does what he wasn't expected to do. If the client chooses to block you from doing what you promised in the animation contract template, the courts would uphold the decision you made to terminate the agreement. It's worth noting that breach of contract can be the subject of a lawsuit.
Once the client decides to change the rules defined before commencing the project, the freelancer will likely to be misled when offering animation services. As such, the freelancer has the right to terminate the contract without facing any penalties. On the other hand, the client should compensate for the resources wasted during the contract.
The two of you are free to terminate the animation contract template if you had agreed to do this earlier. This would be feasible if you included the agreement in the contract. The prior agreement to terminate the deal would come into force when you give your reasons in writing to the client. The client can also do the same, but only by issuing a written notice. Ascertain that the contract specifies the conditions the two of you must meet before terminating it.
The prior agreement can be due to genuine reasons such as unproductivity or other natural causes that will interfere with the project. The animation contract agreement will allow both parties to come into a prevalent decision hence terminating the contract without affecting their business relationship. On the other hand, the client can share the cost of the project with the client once the project has been terminated. After discontinuing the work, the freelancer and client can agree to work on other contracts using different approaches or focus on individual tasks without collaboration.
Freelancers could not want to terminate contracts unless in cases of extreme reasons. However, it is advisable to take precautions by indicating the termination terms in the animation contract agreement before starting the project.
Also, the freelancer should take time to research the client experience to determine whether they are likely to comply or allow negotiation on the same terms. As such, freelancers can work flexibly without worrying much about losing the project amid the contract with severe consequences.
Therefore, follow this guideline to know when it's alright to terminate an animation contract.
This Contract is between Sample Client (the "Client") and John Doe (the "Animator").
The Contract is dated [the date both parties sign].
1. WORK AND PAYMENT.
1.1 Project. The Client is hiring the Animator to do the following: The Animator will create animations for the Client.
1.2 Schedule. The Animator will begin work on October 01, 2020 and the work is ongoing. This Contract can be ended by either Client or Animator at any time, pursuant to the terms of Section 6, Term and Termination.
1.3 Payment. The Client will pay the Animator a rate of $55.00 (USD) per hour. Of this, the Client will pay the Animator $2,000.00 (USD) before work begins.
1.4 Expenses. The Client will reimburse the Animator's expenses. Expenses do not need to be pre-approved by the Client.
1.5 Invoices. The Animator will invoice the Client weekly. The Client agrees to pay the amount owed within 15 days of receiving the invoice. Payment after that date will incur a late fee of 5.0% per month on the outstanding amount.
1.6 Support. The Animator will not provide support for any deliverable once the Client accepts it, unless otherwise agreed in writing.
2. OWNERSHIP AND LICENSES.
2.1 Client Owns All Work Product. As part of this job, the Animator is creating “work product” for the Client. To avoid confusion, work product is the finished product, as well as drafts, notes, materials, mockups, hardware, designs, inventions, patents, code, and anything else that the Animator works on—that is, conceives, creates, designs, develops, invents, works on, or reduces to practice—as part of this project, whether before the date of this Contract or after. The Animator hereby gives the Client this work product once the Client pays for it in full. This means the Animator is giving the Client all of its rights, titles, and interests in and to the work product (including intellectual property rights), and the Client will be the sole owner of it. The Client can use the work product however it wants or it can decide not to use the work product at all. The Client, for example, can modify, destroy, or sell it, as it sees fit.
2.2 Animator's Use Of Work Product. Once the Animator gives the work product to the Client, the Animator does not have any rights to it, except those that the Client explicitly gives the Animator here. The Client gives the Animator permission to use the work product as part of the Animator's portfolio and websites, in galleries, and in other media, so long as it is to showcase the Animator's work and not for any other purpose. The Animator is not allowed to sell or otherwise use the work product to make money or for any other commercial use. The Client is not allowed to take back this license, even after the Contract ends.
2.3 Animator's Help Securing Ownership. In the future, the Client may need the Animator's help to show that the Client owns the work product or to complete the transfer. The Animator agrees to help with that. For example, the Animator may have to sign a patent application. The Client will pay any required expenses for this. If the Client can’t find the Animator, the Animator agrees that the Client can act on the Animator's behalf to accomplish the same thing. The following language gives the Client that right: if the Client can’t find the Animator after spending reasonable effort trying to do so, the Animator hereby irrevocably designates and appoints the Client as the Animator's agent and attorney-in-fact, which appointment is coupled with an interest, to act for the Animator and on the Animator's behalf to execute, verify, and file the required documents and to take any other legal action to accomplish the purposes of paragraph 2.1 (Client Owns All Work Product).
2.4 Animator's IP That Is Not Work Product. During the course of this project, the Animator might use intellectual property that the Animator owns or has licensed from a third party, but that does not qualify as “work product.” This is called “background IP.” Possible examples of background IP are pre-existing code, type fonts, properly-licensed stock photos, and web application tools. The Animator is not giving the Client this background IP. But, as part of the Contract, the Animator is giving the Client a right to use and license (with the right to sublicense) the background IP to develop, market, sell, and support the Client’s products and services. The Client may use this background IP worldwide and free of charge, but it cannot transfer its rights to the background IP (except as allowed in Section 11.1 (Assignment)). The Client cannot sell or license the background IP separately from its products or services. The Animator cannot take back this grant, and this grant does not end when the Contract is over.
2.5 Animator's Right To Use Client IP. The Animator may need to use the Client’s intellectual property to do its job. For example, if the Client is hiring the Animator to build a website, the Animator may have to use the Client’s logo. The Client agrees to let the Animator use the Client’s intellectual property and other intellectual property that the Client controls to the extent reasonably necessary to do the Animator's job. Beyond that, the Client is not giving the Animator any intellectual property rights, unless specifically stated otherwise in this Contract.
3. COMPETITIVE ENGAGEMENTS. The Animator won’t work for a competitor of the Client until this Contract ends. To avoid confusion, a competitor is any third party that develops, manufactures, promotes, sells, licenses, distributes, or provides products or services that are substantially similar to the Client’s products or services. A competitor is also a third party that plans to do any of those things. The one exception to this restriction is if the Animator asks for permission beforehand and the Client agrees to it in writing. If the Animator uses employees or subcontractors, the Animator must make sure they follow the obligations in this paragraph, as well.
4. NON-SOLICITATION. Until this Contract ends, the Animator won’t: (a) encourage Client employees or service providers to stop working for the Client; (b) encourage Client customers or clients to stop doing business with the Client; or (c) hire anyone who worked for the Client over the 12-month period before the Contract ended. The one exception is if the Animator puts out a general ad and someone who happened to work for the Client responds. In that case, the Animator may hire that candidate. The Animator promises that it won’t do anything in this paragraph on behalf of itself or a third party.
5.1 Overview. This section contains important promises between the parties.
5.2 Authority To Sign. Each party promises to the other party that it has the authority to enter into this Contract and to perform all of its obligations under this Contract.
5.3 Animator Has Right To Give Client Work Product. The Animator promises that it owns the work product, that the Animator is able to give the work product to the Client, and that no other party will claim that it owns the work product. If the Animator uses employees or subcontractors, the Animator also promises that these employees and subcontractors have signed contracts with the Animator giving the Animator any rights that the employees or subcontractors have related to the Animator's background IP and work product.
5.4 Animator Will Comply With Laws. The Animator promises that the manner it does this job, its work product, and any background IP it uses comply with applicable U.S. and foreign laws and regulations.
5.5 Work Product Does Not Infringe. The Animator promises that its work product does not and will not infringe on someone else’s intellectual property rights, that the Animator has the right to let the Client use the background IP, and that this Contract does not and will not violate any contract that the Animator has entered into or will enter into with someone else.
5.6 Client Will Review Work. The Client promises to review the work product, to be reasonably available to the Animator if the Animator has questions regarding this project, and to provide timely feedback and decisions.
5.7 Client-Supplied Material Does Not Infringe. If the Client provides the Animator with material to incorporate into the work product, the Client promises that this material does not infringe on someone else’s intellectual property rights.
6. TERM AND TERMINATION. This Contract is ongoing, until ended by the Client or the Animator. Either party may end this Contract for any reason by sending an email or letter to the other party, informing the recipient that the sender is ending the Contract and that the Contract will end in 7 days. The Contract officially ends once that time has passed. The party that is ending the Contract must provide notice by taking the steps explained in Section 11.4. The Animator must immediately stop working as soon as it receives this notice, unless the notice says otherwise. The Client will pay the Animator for the work done up until when the Contract ends and will reimburse the Animator for any agreed-upon, non-cancellable expenses. The following sections don’t end even after the Contract ends: 2 (Ownership and Licenses); 3 (Competitive Engagements); 4 (Non-Solicitation); 5 (Representations); 8 (Confidential Information); 9 (Limitation of Liability); 10 (Indemnity); and 11 (General).
7. INDEPENDENT CONTRACTOR. The Client is hiring the Animator as an independent contractor. The following statements accurately reflect their relationship:
- The Animator will use its own equipment, tools, and material to do the work.- The Client will not control how the job is performed on a day-to-day basis. Rather, the Animator is responsible for determining when, where, and how it will carry out the work.- The Client will not provide the Animator with any training.- The Client and the Animator do not have a partnership or employer-employee relationship.- The Animator cannot enter into contracts, make promises, or act on behalf of the Client.- The Animator is not entitled to the Client’s benefits (e.g., group insurance, retirement benefits, retirement plans, vacation days).- The Animator is responsible for its own taxes.- The Client will not withhold social security and Medicare taxes or make payments for disability insurance, unemployment insurance, or workers compensation for the Animator or any of the Animator's employees or subcontractors.
8. CONFIDENTIAL INFORMATION.
8.1 Overview. This Contract imposes special restrictions on how the Client and the Animator must handle confidential information. These obligations are explained in this section.
8.2 The Client’s Confidential Information. While working for the Client, the Animator may come across, or be given, Client information that is confidential. This is information like customer lists, business strategies, research & development notes, statistics about a website, and other information that is private. The Animator promises to treat this information as if it is the Animator's own confidential information. The Animator may use this information to do its job under this Contract, but not for anything else. For example, if the Client lets the Animator use a customer list to send out a newsletter, the Animator cannot use those email addresses for any other purpose. The one exception to this is if the Client gives the Animator written permission to use the information for another purpose, the Animator may use the information for that purpose, as well. When this Contract ends, the Animator must give back or destroy all confidential information, and confirm that it has done so. The Animator promises that it will not share confidential information with a third party, unless the Client gives the Animator written permission first. The Animator must continue to follow these obligations, even after the Contract ends. The Animator's responsibilities only stop if the Animator can show any of the following: (i) that the information was already public when the Animator came across it; (ii) the information became public after the Animator came across it, but not because of anything the Animator did or didn’t do; (iii) the Animator already knew the information when the Animator came across it and the Animator didn’t have any obligation to keep it secret; (iv) a third party provided the Animator with the information without requiring that the Animator keep it a secret; or (v) the Animator created the information on its own, without using anything belonging to the Client.
8.3 Third-Party Confidential Information. It’s possible the Client and the Animator each have access to confidential information that belongs to third parties. The Client and the Animator each promise that it will not share with the other party confidential information that belongs to third parties, unless it is allowed to do so. If the Client or the Animator is allowed to share confidential information with the other party and does so, the sharing party promises to tell the other party in writing of any special restrictions regarding that information.
9. LIMITATION OF LIABILITY. Neither party is liable for breach-of-contract damages that the breaching party could not reasonably have foreseen when it entered this Contract.
10.1 Overview. This section transfers certain risks between the parties if a third party sues or goes after the Client or the Animator or both. For example, if the Client gets sued for something that the Animator did, then the Animator may promise to come to the Client’s defense or to reimburse the Client for any losses.
10.2 Client Indemnity. In this Contract, the Animator agrees to indemnify the Client (and its affiliates and their directors, officers, employees, and agents) from and against all liabilities, losses, damages, and expenses (including reasonable attorneys’ fees) related to a third-party claim or proceeding arising out of: (i) the work the Animator has done under this Contract; (ii) a breach by the Animator of its obligations under this Contract; or (iii) a breach by the Animator of the promises it is making in Section 5 (Representations).
10.3 Animator Indemnity. In this Contract, the Client agrees to indemnify the Animator (and its affiliates and their directors, officers, employees, and agents) from and against liabilities, losses, damages, and expenses (including reasonable attorneys’ fees) related to a third-party claim or proceeding arising out of a breach by the Client of its obligations under this Contract.
11.1 Assignment. This Contract applies only to the Client and the Animator. The Animator cannot assign its rights or delegate its obligations under this Contract to a third-party (other than by will or intestate), without first receiving the Client’s written permission. In contrast, the Client may assign its rights and delegate its obligations under this Contract without the Animator's permission. This is necessary in case, for example, another Client buys out the Client or if the Client decides to sell the work product that results from this Contract.
11.2 Arbitration. As the exclusive means of initiating adversarial proceedings to resolve any dispute arising under this Contract, a party may demand that the dispute be resolved by arbitration administered by the American Arbitration Association in accordance with its commercial arbitration rules.
11.3 Modification; Waiver. To change anything in this Contract, the Client and the Animator must agree to that change in writing and sign a document showing their contract. Neither party can waive its rights under this Contract or release the other party from its obligations under this Contract, unless the waiving party acknowledges it is doing so in writing and signs a document that says so.
(a) Over the course of this Contract, one party may need to send a notice to the other party. For the notice to be valid, it must be in writing and delivered in one of the following ways: personal delivery, email, or certified or registered mail (postage prepaid, return receipt requested). The notice must be delivered to the party’s address listed at the end of this Contract or to another address that the party has provided in writing as an appropriate address to receive notice.
(b) The timing of when a notice is received can be very important. To avoid confusion, a valid notice is considered received as follows: (i) if delivered personally, it is considered received immediately; (ii) if delivered by email, it is considered received upon acknowledgement of receipt; (iii) if delivered by registered or certified mail (postage prepaid, return receipt requested), it is considered received upon receipt as indicated by the date on the signed receipt. If a party refuses to accept notice or if notice cannot be delivered because of a change in address for which no notice was given, then it is considered received when the notice is rejected or unable to be delivered. If the notice is received after 5:00pm on a business day at the location specified in the address for that party, or on a day that is not a business day, then the notice is considered received at 9:00am on the next business day.
11.5 Severability. This section deals with what happens if a portion of the Contract is found to be unenforceable. If that’s the case, the unenforceable portion will be changed to the minimum extent necessary to make it enforceable, unless that change is not permitted by law, in which case the portion will be disregarded. If any portion of the Contract is changed or disregarded because it is unenforceable, the rest of the Contract is still enforceable.
11.6 Signatures. The Client and the Animator must sign this document using Bonsai’s e-signing system. These electronic signatures count as originals for all purposes.
11.7 Governing Law. The laws of the state of Arizona govern the rights and obligations of the Client and the Animator under this Contract, without regard to conflict of law principles of that state.
11.8 Entire Contract. This Contract represents the parties’ final and complete understanding of this job and the subject matter discussed in this Contract. This Contract supersedes all other contracts (both written and oral) between the parties.
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