A resolutory condition is a crucial contract clause for freelancers. It defines a future event that, if it happens, will automatically terminate your agreement.
What is Resolutory conditions?
A resolutory condition is a clause in a contract that makes the agreement's validity depend on a future, uncertain event. If that specific event occurs, the contract is automatically dissolved. Think of it as a built-in 'off switch' for your freelance agreement under predefined circumstances.
Why is this important?
For freelancers, this clause provides clarity and protection. It automatically ends an obligation if a client, for example, fails to provide essential materials by a set date. This prevents you from being stuck in a stalled project indefinitely and helps manage your liability.
How does it work?
You and your client agree on a specific trigger event and include it in your contract. Common examples include a client missing a milestone payment or failing to provide feedback within an agreed period. When the event happens, the contract ends without needing further negotiation or legal action.
Pros and cons
The main pros are automatic termination, which saves time and conflict, and clear risk management. The cons can include potential rigidity if the clause is too broad and the need for very precise wording to avoid ambiguity and unintended consequences.
Conclusion
Resolutory conditions are a valuable tool for creating safer freelance contracts. By defining clear termination triggers, you protect your time and business. Always ensure these clauses are precisely written to reflect the mutual understanding of both parties.
Ready to freelance?
Download the HFS Freelancers app and discover flexible shifts in your area. Or explore more terms in our knowledge base.
