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Termination Of Sales Representative Agreement for Nigeria

Termination Of Sales Representative Agreement Template for Nigeria

This document is a formal agreement governed by Nigerian law that terminates an existing Sales Representative Agreement between a principal company and its sales representative. It addresses the cessation of the sales representation relationship, including final commission payments, handling of pending sales, return of company property, and post-termination obligations. The agreement ensures compliance with Nigerian commercial and contract laws, incorporating relevant provisions from the Commercial Agency Laws and Contract Law Act, while addressing tax implications and regulatory requirements specific to Nigeria.

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Termination Of Sales Representative Agreement

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What is a Termination Of Sales Representative Agreement?

The Termination Of Sales Representative Agreement is essential when parties wish to formally end their sales representation relationship in Nigeria. This document is typically used when either party initiates termination according to the original agreement's terms, or when both parties mutually agree to end their relationship. It must comply with Nigerian commercial laws and regulations, including the Commercial Agency Laws and Contract Law Act. The agreement covers crucial aspects such as final commission settlements, customer transition arrangements, confidentiality obligations, and post-termination restrictions. It's particularly important in protecting both parties' interests and ensuring a clear record of the termination terms, while maintaining compliance with Nigerian legal requirements regarding notice periods, compensation, and procedural matters.

What sections should be included in a Termination Of Sales Representative Agreement?

1. Parties: Identification of the principal company and the sales representative, including full legal names and addresses

2. Background: Reference to the original Sales Representative Agreement, its date, and brief context of the business relationship

3. Definitions: Key terms used in the termination agreement, including references to defined terms from the original agreement

4. Termination Date: Clear specification of when the Sales Representative Agreement will terminate

5. Basis for Termination: Statement of the grounds for termination, whether mutual agreement or under specific provisions of the original agreement

6. Outstanding Obligations: Details of any remaining duties or obligations of either party up to the termination date

7. Final Commission Payments: Provisions for calculation and payment of final commissions, including treatment of pending sales

8. Return of Property: Requirements for return of company property, materials, and documents

9. Confidentiality: Ongoing obligations regarding confidential information post-termination

10. Non-Compete and Non-Solicitation: Confirmation of any continuing restrictions on competition and customer solicitation

11. Release and Waiver: Mutual release of claims related to the Sales Representative Agreement

12. Governing Law: Confirmation that Nigerian law governs the termination agreement

13. Signatures: Execution blocks for all parties

What sections are optional to include in a Termination Of Sales Representative Agreement?

1. Inventory Handling: Required if the sales representative holds any company inventory that needs to be returned or disposed of

2. Customer Transition: Needed when specific procedures for transitioning customer relationships are required

3. International Provisions: Required if the agreement involves international sales or cross-border elements

4. Tax Provisions: Necessary when specific tax implications need to be addressed

5. Dispute Resolution: Optional detailed procedures for handling any disputes arising from the termination

6. Survival Clause: Detailed listing of which provisions survive termination, if different from standard terms

7. Training and Support Transition: Required if there are ongoing training or support obligations that need to be addressed

8. Insurance: Needed when specific insurance obligations continue post-termination

What schedules should be included in a Termination Of Sales Representative Agreement?

1. Schedule A - Outstanding Commissions: Detailed list of pending commissions and payment calculations

2. Schedule B - Company Property: Inventory of all company property to be returned

3. Schedule C - Customer List: List of customers and pending transactions affected by the termination

4. Schedule D - Transition Timeline: Detailed timeline for completing all termination obligations

5. Appendix 1 - Original Agreement: Copy of the original Sales Representative Agreement

6. Appendix 2 - Final Account Statement: Statement of all financial matters between the parties

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

Jurisdiction

Nigeria

Cost

Free to use
Relevant legal definitions






























Clauses




























Relevant Industries

Manufacturing

Consumer Goods

Industrial Products

Technology and Software

Pharmaceuticals

Automotive

Construction Materials

Agricultural Products

Telecommunications

Medical Equipment

Financial Services

Energy and Utilities

Relevant Teams

Legal

Sales

Finance

Compliance

Business Development

Operations

Commercial

Corporate Secretariat

Risk Management

Human Resources

Relevant Roles

Sales Director

Commercial Director

Legal Counsel

Chief Executive Officer

Managing Director

Sales Operations Manager

Business Development Manager

Contract Manager

Compliance Officer

Chief Financial Officer

Sales Representative

Regional Sales Manager

Company Secretary

General Counsel

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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