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Can an agency withhold my payment for a client dispute?

Agency may hold your payment if its client disputes anything? Limit the withheld amount to the disputed item and set a resolution deadline.

The risky clause

Agency may withhold any payment to Subcontractor while any dispute with its client remains unresolved.

Why it is dangerous

A blanket right to hold all payments lets the agency delay for months. Allow withholding only for the disputed item, with a deadline for resolution and payment of the undisputed part. This is general information, not legal advice.

Safer clause to propose

Agency may withhold only the amount reasonably in dispute for up to 30 days, shall give written reasons and shall pay all undisputed amounts on time.

Message to send

Hi [Agency],

Could any withholding be limited to the disputed amount for up to 30 days, with the rest paid on time? Thanks, [Your Name]

Frequently asked questions

Can a dispute freeze all payments?

Only if the contract says so. Limit withholding to the disputed amount.

How long should a dispute last?

Set a deadline such as 30 days.

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• Am I liable for IP infringement in client-supplied assets?

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Not legal advice. ClauseRadar is an automated AI review tool, not a law firm. © 2026 ClauseRadar.