Can you stop providing services if your client doesn’t pay you on time?

I get asked this question a lot and generally there is a really simple answer, so this is probably going to be a very short post:

*If you don't have a contractual right to suspend services in your client Ts and Cs, then you probably can't*

(There is an exception for certain construction contracts but we’ll assume that doesn’t apply for now, as the rules around this area aren’t entirely straightforward).

The good news is - it's an easy fix! You can draft a clause which allows you to suspend services for non-payment and other specific defaults by the client. You could try a clause as simple as this one:

“If the Customer fails to pay the Supplier any sum due under this agreement on the due date, the Supplier may suspend all or part of the agreed services until payment has been made in full”.

You might also include termination provisions which allow you to terminate (end) the contract if the default isn't fixed within a certain timeframe.

If you don't include these clauses then:

• you'll be left to sue the client for the outstanding debt. Depending on how much money is in play, this isn’t always a quick or economical route.

• you usually won't be able to terminate the contract and you’ll have to keep working even though you are not getting paid.

• to further irritate you, if you try to suspend services without a right to do so, you could be sued by the client...and the client may be able to terminate the contract themselves!
  
  So, these are really useful clauses to protect you and your business.
  
  If you need assistance getting your suspension and termination rights sorted, SLL can help.