Don’t put yourself into a position where your client owes you a lot of money, or you owe them a lot of work. You have to decide what “a lot” means in context.

Don’t put yourself into a position where your client owes you a lot of money, or you owe them a lot of work. You have to decide what “a lot” means in context. I avoid getting into such situations by agreeing to well-defined milestones and deliverables, so the client sees regular progress and I have frequent billable events. Neither party ever gets too obligated to the other, and either party can terminate or change the terms without putting a lot of money or work at risk. You can also use escrow, possibly useful when dealing with clients you don’t trust, but I would avoid getting involved with clients who give you a bad feeling or have a reputation for no pay/slow pay. Lawyers and contracts won’t save you from an unethical client (or consultant). Contract disputes generally go to arbitration in the USA (by statute). A lawsuit can consume a lot of time, money, mental energy, and ruin your professional reputation. Better to avoid getting into those situations rather than prepare for legal battles.