Real-world examples of mutual termination clause examples for freelancers

Quick, practical examples of mutual termination clause language

Let’s start with what you probably came for: concrete wording. Below are several examples of mutual termination clause examples for freelancers in different situations. You can mix and match phrases, but always run final contracts past a lawyer licensed in your state or country.

Example of a simple mutual termination clause for short projects

This is the kind of thing a freelance writer or designer might use for a one‑off project:

Mutual Termination. Either party may terminate this Agreement for any reason by providing seven (7) days’ written notice to the other party. In the event of termination, Client shall pay Freelancer for all work completed up to the effective date of termination, based on the project milestones or hourly rate set out in this Agreement. Upon final payment, Freelancer will deliver all completed work to Client, and both parties agree that no further amounts are owed by either party.

This example of a mutual termination clause keeps things short but still covers notice, payment, and deliverables.

Example of a mutual termination clause with kill fee protection

If you block your calendar for a client, you take on risk. Many of the best examples of mutual termination clause language include a kill fee so you’re not left unpaid when a client cancels late.

Mutual Termination and Kill Fee. Either party may terminate this Agreement for any reason upon ten (10) days’ written notice. If Client terminates the Agreement before completion of the Services, Client shall pay: (a) fees for all Services completed up to the termination date, and (b) a kill fee equal to twenty-five percent (25%) of the remaining unpaid project fee, in recognition of Freelancer’s reserved time and lost opportunities. If Freelancer terminates the Agreement without cause, no kill fee shall be owed by Client.

Here, the clause balances flexibility (both sides can leave) with fairness (you’re compensated when the client walks away mid‑project).

Example of a mutual termination clause for monthly retainers

Retainer work has surged in 2024–2025 as freelancers look for more predictable income. For ongoing work, examples of mutual termination clause examples for freelancers often focus on billing cycles and partial refunds.

Mutual Termination for Ongoing Services. This Agreement shall continue on a month-to-month basis unless terminated. Either party may terminate this Agreement at any time by providing thirty (30) days’ written notice. Fees are billed monthly in advance. If either party terminates this Agreement, Client shall remain responsible for fees for the current billing period, and Freelancer shall continue to provide Services through the end of that period. No prorated refunds will be issued unless otherwise agreed in writing.

Retainer clients appreciate clarity; you appreciate knowing exactly how and when you can end things.

Example of a mutual termination clause tied to project milestones

If your work is milestone‑driven (web development, branding, app design), you might want termination to trigger a clean handoff at the nearest milestone.

Mutual Termination at Milestones. Either party may terminate this Agreement for any reason by providing fourteen (14) days’ written notice. Upon termination, Freelancer will cease work at the nearest logical project milestone, as determined in good faith by both parties. Client shall pay Freelancer for all completed milestones and any work-in-progress on a pro rata basis. Upon receipt of final payment, Freelancer will deliver all completed deliverables for paid milestones, and all rights in such deliverables shall transfer to Client as set forth in this Agreement.

This example of a mutual termination clause is helpful when it’s messy to stop in the middle of a phase.

Example of a mutual termination clause for remote, cross‑border clients

With more international clients and remote work, you need clarity on governing law and communication.

Mutual Termination; Governing Law. Either party may terminate this Agreement for any reason upon fourteen (14) days’ written notice via email. Notice shall be deemed received when sent to the email addresses listed in this Agreement. In the event of termination, Client shall pay all undisputed amounts due within seven (7) days of receiving Freelancer’s final invoice. This Agreement and any dispute arising out of or related to it, including termination, shall be governed by the laws of the State of California, without regard to its conflict of law principles.

This is one of the best examples of mutual termination clause language if you regularly work with overseas clients and want your home jurisdiction to apply.

Example of a mutual termination clause with IP and confidentiality

Creative and technical freelancers often forget to connect termination with intellectual property (IP) and confidentiality. The stronger examples of mutual termination clause examples for freelancers make that link explicit.

Mutual Termination; Intellectual Property and Confidentiality. Either party may terminate this Agreement for any reason upon ten (10) days’ written notice. Upon termination, Client shall pay Freelancer for all Services performed and approved expenses incurred through the effective date of termination. Upon receipt of full payment, Freelancer hereby assigns to Client all right, title, and interest in and to the deliverables created under this Agreement, as described in Section 5 (Intellectual Property). The confidentiality obligations in Section 6 (Confidentiality) shall survive termination of this Agreement.

This protects your client’s information and clarifies when ownership actually transfers.

Example of mutual termination for performance or fit issues

Sometimes you and a client realize it’s just not working. This more detailed example of a mutual termination clause gives both sides an exit when performance or collaboration breaks down.

Mutual Termination for Convenience or Performance. Either party may terminate this Agreement for convenience upon ten (10) days’ written notice. In addition, either party may terminate this Agreement immediately if the other party: (a) materially breaches any provision of this Agreement and fails to cure such breach within five (5) days after receiving written notice, or (b) engages in conduct that makes continued collaboration unreasonably difficult (including repeated failure to provide feedback, information, or payment on a timely basis). In all cases, Client shall pay Freelancer for Services performed up to the termination date, and no additional fees shall be owed by either party, except as expressly provided in this Agreement.

This is one of the more realistic examples of mutual termination clause examples for freelancers who’ve dealt with ghosting or chaotic clients.

Example of mutual termination clause for subscription‑style services

More freelancers are offering productized, subscription‑style services (for example, “unlimited design requests” or “content subscriptions”). These business models need extra clarity around refunds and cancellations.

Mutual Termination for Subscription Services. This Agreement shall remain in effect until terminated by either party. Either party may terminate at any time for any reason by providing written notice. Subscriptions are billed monthly in advance and are non-refundable once the billing period begins. If Client terminates, Services will continue through the end of the current billing period. If Freelancer terminates, Freelancer shall either (a) complete all agreed-upon work for the current billing period, or (b) issue a prorated refund for the unused portion of the period, at Freelancer’s discretion.

This clause reflects how many 2024–2025 subscription services operate: clear, simple, and predictable.

How to choose between these examples of mutual termination clause language

Looking at all these examples of mutual termination clause examples for freelancers, it’s tempting to copy‑paste the longest one and call it a day. But the better approach is to match the clause to how you actually work.

If you:

• Take on short, fixed‑price projects, a simple mutual termination clause with a short notice period and payment for work completed is often enough.
• Reserve large blocks of time for a client (like a big product launch), you probably want a kill fee or minimum payment.
• Work on retainers or subscriptions, you’ll want the clause to reference billing cycles and whether refunds are prorated.
• Handle sensitive data or long‑term strategy, connect termination to confidentiality and IP.

A good way to test your clause: imagine the worst‑case scenario. The client cancels halfway through, or you need to exit because the client is unresponsive. Walk through what happens step by step:

• How much notice do you have to give?
• What happens to work‑in‑progress?
• How much are you paid, and when?
• Who owns what you’ve created so far?
• Are there any refunds or extra fees?

If you can answer those questions clearly from your clause, you’re in solid shape.

For broader small‑business contract guidance, the U.S. Small Business Administration has helpful resources on contracts and legal basics: https://www.sba.gov/business-guide/manage-your-business/prepare-business-contracts

2024–2025 trends shaping mutual termination clauses for freelancers

Freelance contracts haven’t stayed frozen since 2019. A few trends are changing how freelancers write these clauses:

Remote‑first and global clients

The explosion of remote work means more cross‑border projects. That’s why many modern examples of mutual termination clause examples for freelancers now:

• Specify a governing law and jurisdiction (for example, “State of New York”).
• Accept email as valid written notice, sometimes with a specific subject line.
• Set clear payment timelines after termination (often 7–14 days).

The U.S. Department of Labor offers general guidance for independent contractors that can help you think about your status and contracts: https://www.dol.gov/general/topic/wages/contractor

Subscription and productized services

More freelancers are moving away from one‑off projects toward recurring revenue. That shift shows up in the best examples of mutual termination clause language:

• Clear rules about non‑refundable monthly fees.
• Options for prorated refunds if the freelancer ends the agreement.
• Explicit explanations of what happens to unused requests or hours.

Increased focus on mental health and boundaries

Burnout is a real issue in freelancing, and many freelancers are building healthier boundaries directly into their contracts. You’ll see modern examples of mutual termination clause examples for freelancers that:

• Allow termination if the relationship becomes hostile or unsafe.
• Limit after‑hours communication and clarify response times.
• Tie termination rights to repeated non‑payment or scope creep.

While mental health resources like the National Institute of Mental Health (https://www.nimh.nih.gov) don’t give contract templates, they do underline why protecting your time and energy is not just a business decision but a health one.

Key elements to include in your own mutual termination clause

Once you’ve studied several examples of mutual termination clause examples for freelancers, you’ll notice the same building blocks repeated in slightly different ways. When you write your own, think about these elements:

Notice period. How many days’ written notice does each side need to give? Shorter notice gives more flexibility; longer notice gives more stability.

Payment on termination. Spell out exactly what the client owes if the agreement ends early: payment for work completed, expenses, and possibly a kill fee or minimum.

Refunds (if any). If you collect deposits or prepayments, say whether they are refundable, partially refundable, or non‑refundable.

Deliverables and IP. Clarify what you deliver after termination and who owns what. Many freelancers only transfer IP once they’ve been fully paid.

Surviving clauses. Note which obligations survive termination, like confidentiality, IP ownership, or non‑disparagement.

Method of notice. Email is common now. State which addresses count as official and when notice is considered received.

You don’t need legalese to cover these points. Plain English is usually better for everyone.

FAQ about mutual termination clauses for freelancers

What is an example of a simple mutual termination clause I can start with?

Here’s a short option many new freelancers adapt:

Either party may terminate this Agreement at any time, for any reason, by providing ten (10) days’ written notice to the other party. In the event of termination, Client shall pay Freelancer for all work completed and approved expenses incurred through the effective date of termination. Upon receipt of full payment, Freelancer will deliver all completed work to Client, and no further payments will be owed by either party.

This is one of the simplest examples of mutual termination clause examples for freelancers, and a good starting point to discuss with an attorney.

Do I really need a mutual termination clause if I trust my client?

Yes. Trust is great; clarity is better. Even well‑intentioned clients change priorities, lose funding, or reorganize teams. A clear clause protects both of you and keeps the conversation factual instead of emotional when something changes.

Can I charge a kill fee in a mutual termination clause?

You can, as long as it’s clearly written and agreed to upfront. Many real examples of mutual termination clause language include a kill fee of 20–50% of the remaining project fee when the client cancels. The exact number depends on how much risk you’re taking on and how much time you’ve blocked off.

Are there legal templates with more examples of freelance clauses?

Yes. While you should always adapt templates to your situation, you can find guidance and checklists from organizations like the SBA (https://www.sba.gov) or, for broader contract‑law education, universities such as Harvard Law School’s online resources (https://hls.harvard.edu). These won’t always give you freelancer‑specific wording, but they help you understand the structure of enforceable agreements.

Can a mutual termination clause be one‑sided in practice?

If the clause technically allows both parties to terminate but makes it very hard or expensive for you to do so, it’s not truly mutual. When reviewing examples of mutual termination clause examples for freelancers, watch for red flags like long notice periods only on your side, penalties only for you, or vague language about what happens to your work.

Bottom line: examples of mutual termination clause examples for freelancers are not there to make your contracts scary. They’re there to give you and your client a respectful, predictable way to say, “This isn’t working anymore,” without burning bridges or losing income. Use the examples above as a starting point, then fine‑tune them so they fit the way you actually work.