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Contract of mandate cost calculatorTable of contents
A mandate contract can usually be terminated at any time. However, the contract terms and circumstances determine the effects of termination. Importantly, parties cannot waive termination for an important reason in advance.
Termination without an important reason may trigger liability for damages. The contractor can be liable for losses, and the principal may need to reimburse expenses and settle completed work. It is safer to document reasons and keep written form.
If the contract provides a notice period, it should be respected. Written notice with delivery confirmation is best practice.
Need a template? See mandate contract template. Core rules and risks are in mandate basics.
If termination affects settlement, use the mandate cost calculator.
There is no closed list of “important reasons”. In practice it may include non‑payment, a material change of scope, safety breaches, loss of trust or work inconsistent with the contract. Describe the reason briefly and keep evidence.
If both sides want to end cooperation, a mutual agreement is safest. A short document with the end date, settlement of completed tasks and a no‑claims clause is enough.
Use written delivery: registered mail, email with confirmation, or handover with a signed copy. Without proof, it is hard to determine effectiveness and timelines.
The contractor has not been paid for two months despite completing tasks. They terminate for an important reason, attach a payment demand and settle only the work completed to the termination date.
Termination does not remove the duty to settle work already performed. If the client benefits from the work, it should be settled under the contract or equity principles.
Both the contractor and the client may terminate a mandate. In practice it is good to define a notice period to organize handover and settlements.
Civil law does not impose fixed notice periods, so parties often include a contractual notice period (e.g. a week or a month). This helps with handover and reduces disputes.
If the contractor received advances or expense reimbursements, settle them at the end of cooperation. It helps close the contract without payment disputes.
After termination, it is good practice to document the return of equipment, documents or system access. This reduces disputes and supports final settlement.
If the contract includes confidentiality or non‑compete clauses, they may continue after termination. Check their duration and potential penalties.
If the mandate was hourly, close the time records as of the termination date and confirm completed tasks. This helps settle the final payment.
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