• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Forfeiture of Funds in Freelance Contract

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

jocumo89

Junior Member
Hi, I have a question about freelance contracts. I'm a writer residing in New York and recently stopped working for a commission-based website. I still have back payment and was confused when I didn't receive any notifications from Paypal this morning, so I looked over my original contract. It states: "Unless otherwise agreed to by the parties in writing, payments to Contractor shall be forfeited if Contractor does not write for a span of 14 consecutive days." The company currently owes me over $100 and I'm concerned that they will use this precedent to withhold my earnings. Is this even legal? I understand that I signed the contract and that it's binding, but this clause is the lowest form of frugality. I was hoping someone could provide some insight into this case. Thanks in advance.
 


quincy

Senior Member
Hi, I have a question about freelance contracts. I'm a writer residing in New York and recently stopped working for a commission-based website. I still have back payment and was confused when I didn't receive any notifications from Paypal this morning, so I looked over my original contract. It states: "Unless otherwise agreed to by the parties in writing, payments to Contractor shall be forfeited if Contractor does not write for a span of 14 consecutive days." The company currently owes me over $100 and I'm concerned that they will use this precedent to withhold my earnings. Is this even legal? I understand that I signed the contract and that it's binding, but this clause is the lowest form of frugality. I was hoping someone could provide some insight into this case. Thanks in advance.
So, you did not fulfill the terms of the contract you read and signed?

Unless the clause was added after you signed the agreement, you might be out the $100+ - but you can have the contract reviewed in its entirety to better judge its legality.
 

jocumo89

Junior Member
So, you did not fulfill the terms of the contract you read and signed?

Unless the clause was added after you signed the agreement, you might be out the $100+ - but you can have the contract reviewed in its entirety to better judge its legality.
The position was for an ongoing freelance writing job. I completely understand that I read and signed the document, but can't help but think that it's a shady business practice. The earnings cover the month of February and I only stopped writing at the beginning of March. By including this clause, they're ensuring that any employee who leaves the company at any time other than the middle of the month (when they pay through Paypal), forfeits everything they earned. Thanks for your response, it's much appreciated.
 

quincy

Senior Member
The position was for an ongoing freelance writing job. I completely understand that I read and signed the document, but can't help but think that it's a shady business practice. The earnings cover the month of February and I only stopped writing at the beginning of March. By including this clause, they're ensuring that any employee who leaves the company at any time other than the middle of the month (when they pay through Paypal), forfeits everything they earned. Thanks for your response, it's much appreciated.
"Conditional payment" clauses can be invalid when they are of the pay-if-paid sort. New York and a few other states have found that contracts that state an employee/independent contractor will not get paid unless the business gets paid by the client are not valid.

But the clause that concerns you is a bit different than this.

You were apparently hired as an independent contract for a writing project, and you were provided with the scope of the project and the project schedule (14 days). You read the terms and conditions of payment and you agreed to them.

As an independent contractor, you are responsible for the satisfactory completion of the job for which you contract. When you breach the terms of the agreement, this can release all obligations on the part of the other party, including having to pay - and you could actually be responsible for paying for any damages suffered by the other party.

That said, more really needs to be known about the commission-based website that hired you and the type and terms of your employment with the business (including a review of the contract in its entirety). It is possible the business is shady and the business practices shoddy and the terms of the contract invalid and unenforceable and that you are legitimately owed $100+.

For that reason, you might want to take your contract for a personal review by a local attorney. Perhaps you can find a local legal aid clinic that will do the review for free (I am not sure you will find an attorney for less than $100).

Good luck.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top