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Termination Of Distribution Agreement Template for Austria

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Key Requirements PROMPT example:

Termination Of Distribution Agreement

"I need a Termination of Distribution Agreement for mutually ending our distribution partnership with GreenTech Electronics GmbH by March 1, 2025, including provisions for buying back remaining inventory and transferring customer relationships to our new distributor."

Document background
The Termination of Distribution Agreement is essential when parties seek to formally end their distribution relationship in Austria. This document is typically used when either the manufacturer/supplier or distributor wishes to end their commercial relationship, whether by mutual consent or unilateral decision. It must comply with Austrian legal requirements, particularly the Austrian Commercial Code (UGB) and relevant EU regulations. The agreement covers crucial aspects such as termination notice periods, compensation calculations, handling of remaining inventory, customer transition arrangements, and post-termination obligations. It's particularly important in protecting both parties' interests and ensuring a smooth transition while maintaining compliance with Austrian legal requirements regarding commercial agency and distribution relationships.
Suggested Sections

1. Parties: Identification of the parties to the termination agreement, including the supplier/manufacturer and the distributor

2. Background: Reference to the original Distribution Agreement, its date, and brief context for the termination

3. Definitions: Key terms used in the termination agreement, including relevant terms carried over from the original agreement

4. Termination Date: Specific date when the Distribution Agreement will terminate, including any applicable notice periods

5. Basis for Termination: Legal grounds for termination and reference to relevant clauses in the original agreement

6. Mutual Obligations During Notice Period: Parties' responsibilities during the period between termination notice and effective termination date

7. Final Orders and Deliveries: Handling of pending orders and last delivery dates

8. Financial Settlement: Settlement of outstanding payments, commissions, and any termination compensation

9. Return of Materials: Provisions for return of marketing materials, documentation, and other property

10. Confidentiality: Ongoing obligations regarding confidential information

11. Post-Termination Obligations: Continuing obligations after termination, including warranties for products sold

12. General Provisions: Standard clauses including governing law, jurisdiction, and entire agreement provisions

Optional Sections

1. Inventory Buyback: Terms for manufacturer's repurchase of distributor's remaining inventory, used when significant stock remains

2. Customer Transfer: Procedures for transferring customer relationships, needed when ensuring business continuity

3. Intellectual Property Rights: Specific provisions regarding the cessation of IP rights usage, important when branded products are involved

4. Non-Compete Obligations: Post-termination competition restrictions, if allowable under applicable law

5. Transition Assistance: Terms for cooperation in transitioning to new distribution arrangements

6. Warranty Handling: Specific arrangements for handling ongoing warranty claims, important for technical products

7. Data Transfer: Provisions for handling customer and business data transfer, particularly relevant under GDPR

8. Employee Matters: Provisions regarding employees if any were dedicated to the distribution relationship

Suggested Schedules

1. Schedule 1 - Product List: Comprehensive list of products covered by the termination agreement

2. Schedule 2 - Territory Definition: Definition of geographical areas where termination applies

3. Schedule 3 - Financial Settlement Statement: Detailed calculation of final payments, including any compensation claims

4. Schedule 4 - Inventory List: Current inventory levels and agreed handling procedures

5. Schedule 5 - Outstanding Orders: List of pending orders and their handling

6. Schedule 6 - Customer List: List of customers and agreed handling procedures

7. Appendix A - Handover Timeline: Detailed timeline for termination implementation and transition activities

8. Appendix B - Compliance Checklist: Checklist of actions required for compliant termination process

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



































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Relevant Industries

Consumer Goods

Industrial Products

Automotive

Electronics

Pharmaceuticals

Food and Beverage

Software and Technology

Medical Devices

Chemical Products

Machinery and Equipment

Construction Materials

Luxury Goods

Telecommunications

Agricultural Products

Relevant Teams

Legal

Sales

Operations

Commercial

Supply Chain

Business Development

Compliance

Finance

Customer Service

Distribution

Logistics

Product Management

Relevant Roles

Legal Counsel

Commercial Director

Sales Director

Chief Operating Officer

Business Development Manager

Contract Manager

Distribution Manager

Supply Chain Manager

Account Manager

Compliance Officer

General Manager

Managing Director

Chief Executive Officer

Operations Manager

Regional Sales Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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