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Mutual Cancellation Agreement
"I need a Mutual Cancellation Agreement under Saudi law to terminate a distribution agreement with our local agent, effective March 1, 2025, including provisions for the return of marketing materials and settlement of outstanding commissions."
1. Parties: Identification of all contracting parties with full legal names and addresses
2. Background: Details of the original agreement being cancelled, including its date, purpose, and reference number
3. Definitions: Key terms used throughout the agreement, including defined terms from the original agreement that remain relevant
4. Mutual Agreement to Cancel: Express statement of parties' mutual consent to terminate the original agreement
5. Effective Date of Cancellation: Specific date when the cancellation takes effect
6. Settlement of Accounts: Details of final financial settlements between the parties
7. Release and Discharge: Mutual release from obligations under the original agreement
8. Return of Property: Requirements for returning any physical or intellectual property
9. Confidentiality: Ongoing obligations regarding confidential information
10. Governing Law: Confirmation of Saudi law and Sharia principles as governing law
11. Execution: Signature blocks and execution requirements
1. Transition Arrangements: Required when the cancellation needs a phased implementation or handover period
2. Surviving Obligations: Needed when certain obligations from the original agreement should continue after cancellation
3. Third Party Rights: Include when the cancellation affects rights of third parties or requires third party consents
4. Employee Matters: Required when the cancellation impacts employment relationships
5. Intellectual Property Rights: Include when there are IP rights that need to be addressed post-cancellation
6. Non-Competition: Include when parties wish to maintain non-compete obligations post-cancellation
7. Dispute Resolution: Optional detailed dispute resolution process for any post-cancellation issues
8. Public Announcements: Include when parties need to coordinate public communications about the cancellation
1. Schedule 1 - Original Agreement: Copy or details of the agreement being cancelled
2. Schedule 2 - Settlement Statement: Detailed breakdown of final financial settlements and payments
3. Schedule 3 - Property Inventory: List of assets or properties to be returned or transferred
4. Schedule 4 - Outstanding Obligations: List of any obligations that survive the cancellation
5. Schedule 5 - Transition Plan: Detailed timeline and steps for implementing the cancellation
6. Appendix A - Required Notices: Templates for any required notices to third parties
7. Appendix B - Execution Requirements: Specific requirements for proper execution under Saudi law
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