If you have an agreement with a client and it doesn’t have verbiage about raising rates, do you still have the right to increase the charge?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If you have an agreement with a client and it doesn’t have verbiage about raising rates, do you still have the right to increase the charge?
Asked on January 2, 2015 under Business Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
You would not have the right to increase the charge or rates during the term of this agreement, but clearly could do so when the agreement expires. This assumes that the agreement or contract is for a definite term (e.g. 1 year, 2 years, etc.). If there is no term, then the agreement only applies to work already done or in progress (or at least "ordered" by the client); however, when there is an agreement with no definite or specific term, you can give you client notice (in writing) that you are increasing your rates at some date in the future, and charge more from that time forward.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.