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On this episode of business guy.. Lets say youre doing a job for a client and suddenly they decide to cancel the project. Mr. Client, here are the revisions you asked for. You know, on second thought, the project is cancelled. Well call you if we need anything else. Okay, but youre going to pay me for the work. Ive done right? Well, Id really like to do that. But, I dont see why I should pay for an incomplete thing surely you understand right? You see, Im cancelling the project. So now its like it never happened. Isnt that great? So, how do you protect yourself from this kind of situation? Make sure you always put a cancellation clause in your contracts - language that clearly states that you expect compensation if the project is cancelled and also how you plan to calculate said compensation. You actually agreed to pay me for the amount of work completed in the event of a cancellation. Im not asking for the full budget just enough to reflect the services and labor that I did