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Termination Due To Non Performance for the Netherlands

Termination Due To Non Performance Template for Netherlands

A formal legal document governed by Dutch law that facilitates the termination of a contractual relationship due to one party's failure to perform their contractual obligations. The document incorporates essential elements required under the Dutch Civil Code, particularly Articles 6:265 and 6:266, detailing the nature of the breach, documenting prior notices, and establishing the terms of termination. It includes provisions for the settlement of accounts, return of property, and surviving obligations, while ensuring compliance with Dutch legal requirements for contract termination and notice periods.

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Termination Due To Non Performance

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What is a Termination Due To Non Performance?

This Termination Due To Non Performance agreement is a crucial legal instrument under Dutch law, used when one party has failed to fulfill their contractual obligations to a degree that justifies contract termination. It is typically employed after attempts to remedy the breach have failed and formal notices of default have been issued in accordance with Dutch Civil Code requirements. The document serves multiple purposes: it formally documents the breach and termination process, establishes the effective date of termination, outlines the immediate consequences, and sets forth post-termination obligations of both parties. This agreement type is particularly important as it helps mitigate legal risks by ensuring compliance with Dutch statutory requirements for contract termination while providing a clear framework for unwinding the business relationship.

What sections should be included in a Termination Due To Non Performance?

1. Parties: Identification of the contracting parties, including full legal names, registration details, and addresses

2. Background: Summary of the original agreement, its key terms, and the relationship between the parties

3. Definitions: Definitions of key terms used in the agreement, including references to the original agreement

4. Non-Performance Details: Specific details of the breach or non-performance, including dates, specific obligations breached, and impact

5. Prior Notices: Documentation of previous notifications of default and opportunities to cure

6. Termination: Formal declaration of termination, effective date, and legal basis under Dutch law

7. Consequences of Termination: Immediate effects of termination, including cessation of services/obligations

8. Settlement of Accounts: Financial reconciliation, including outstanding payments and damages

9. Return of Property: Requirements for returning any property, documents, or confidential information

10. Surviving Obligations: Clauses from the original agreement that survive termination

11. Governing Law and Jurisdiction: Confirmation of Dutch law application and jurisdiction for disputes

What sections are optional to include in a Termination Due To Non Performance?

1. Transition Arrangements: Include when service continuity is critical or handover to new providers is needed

2. Mutual Release: Include when parties agree to waive future claims related to the agreement

3. Non-Compete Obligations: Include when original agreement contained non-compete provisions that need to be addressed

4. Intellectual Property Rights: Include when IP rights need to be addressed post-termination

5. Public Announcements: Include for high-profile relationships or when coordinated communication is necessary

6. Employee Matters: Include when termination affects employed staff or contractors

7. Insurance and Indemnities: Include when specific insurance obligations or indemnities need to survive

What schedules should be included in a Termination Due To Non Performance?

1. Schedule 1 - Breach Documentation: Detailed chronology and evidence of non-performance events

2. Schedule 2 - Financial Statement: Detailed breakdown of outstanding amounts and damages calculation

3. Schedule 3 - Property Register: List of items to be returned or transferred between parties

4. Schedule 4 - Transition Plan: If applicable, detailed plan for service transition or wind-down

5. Appendix A - Notice History: Copies of all relevant notices and correspondence regarding the breach

6. Appendix B - Original Agreement: Copy of the original agreement being terminated

Authors

Alex Denne

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

Jurisdiction

Netherlands

Publisher

Ƶ

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions






































Clauses



































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