The Termination of Consultancy Agreement is used when parties wish to formally end their consultancy relationship before its natural conclusion or to document the end of the arrangement. This document, governed by English and Welsh law, covers essential elements including termination date, final payments, intellectual property rights, confidentiality obligations, and the return of company property. It provides legal certainty and protection for both parties by clearly defining their rights and obligations upon termination, helping prevent future disputes and ensuring compliance with relevant legislation.
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1. Parties: Identification of the contracting parties including full legal names and addresses
2. Background: Context of the original consultancy agreement and reasons for termination
3. Definitions: Key terms used throughout the termination agreement
4. Termination Date: Specific date when the consultancy agreement will terminate and confirmation of notice periods
5. Final Payment Terms: Details of final payments, outstanding invoices, and settlement of accounts
6. Return of Property: Provisions for returning company property, documents, and materials
7. Continuing Obligations: Obligations that survive termination including confidentiality and intellectual property rights
8. Execution: Signature blocks and execution provisions
1. Mutual Release: Provisions for mutual release of claims between parties, typically used when ensuring a clean break
2. Reference Provision: Terms regarding future references and agreed statements about the consultancy
3. Non-Compete Provisions: Post-termination restrictions and non-compete obligations, if applicable from original agreement
4. Dispute Resolution: Specific mechanisms for resolving any future disputes relating to the termination
5. Tax Indemnity: Provisions dealing with tax liabilities and indemnities
1. Schedule 1: Outstanding Payments: Detailed breakdown of final payments, expenses, and payment timeline
2. Schedule 2: Company Property: Comprehensive list of company property to be returned
3. Schedule 3: Surviving Obligations: Detailed list of obligations that continue after termination
4. Schedule 4: Form of Release: Standard form of mutual release and waiver
5. Schedule 5: Original Agreement: Copy of the original consultancy agreement being terminated
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