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Hi there Jonathan. Are they asking you to rectify the work before paying you as I understand that an agreement of this kind is not in place as yet?
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If they fail to pay you then that would amount to a breach of contract and entitle you to treat the whole contractual relationship as at an immediate end, o yes that would enable you to leave straight away due to a fundamental breach of contract on their part.
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Yes generally that is correct
You can ask them to issue a document which states that the payment they have made is in full and final settlement of all and any past or current claims and liabilities you may have against each other. However, you cannot force them to agree to such a document