The Notice To Terminate Agency Agreement is a crucial document used when a principal wishes to formally end their relationship with an appointed agent. This notice is particularly important in the United States where agency relationships are governed by both federal and state laws. The document should be used when the principal decides to end the agency relationship, whether due to breach of contract, expiration of term, or mutual agreement. It typically includes termination date, final settlement terms, and post-termination obligations. The notice protects both parties by clearly documenting the termination and helping prevent future disputes.
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1. Date and Parties: Identification of the principal and agent, including full legal names and addresses
2. Reference to Original Agreement: Details of the original agency agreement being terminated, including date and parties
3. Notice of Termination: Clear statement of intent to terminate the agency agreement
4. Effective Date: Specific date when the termination becomes effective
5. Reason for Termination: If required by original agreement, statement of grounds for termination
1. Transition Period: Details of any handover period and procedures for transitioning ongoing matters
2. Final Accounting: Details of final commission payments or financial settlements to be made
3. Post-Termination Obligations: Reference to continuing obligations such as confidentiality and non-compete provisions
1. Schedule A - Original Agreement: Reference copy of the agreement being terminated
2. Schedule B - Final Account Statement: Statement of any outstanding payments or commissions
3. Schedule C - Property Return Schedule: List of items, documents, and materials to be returned to principal
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