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Termination Of Agency Agreement
"I need a Termination of Agency Agreement for mutually ending our commercial agency relationship with our Saudi distributor of medical equipment, including a 3-month transition period starting March 1, 2025, and provisions for handling existing inventory and customer contracts."
1. Parties: Identification of the Principal and Agent, including full legal names, addresses, and commercial registration details
2. Background: Reference to the original Agency Agreement, its date, registration details with Ministry of Commerce, and brief description of the agency relationship
3. Definitions: Key terms used in the agreement, including reference to defined terms from the original Agency Agreement
4. Termination: Clear statement of termination, effective date, and basis for termination (mutual agreement, breach, etc.)
5. Mutual Release: Provisions for mutual release from obligations under the Agency Agreement, subject to completion of termination obligations
6. Post-Termination Obligations: Specific duties of both parties following termination, including return of materials, confidentiality, and non-compete obligations
7. Settlement of Accounts: Terms for final settlement of outstanding accounts, commissions, and financial obligations
8. Deregistration: Process and responsibilities for deregistering the agency from the Ministry of Commerce register
9. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and specification of dispute resolution mechanism
10. Execution: Signature blocks and execution requirements compliant with Saudi law
1. Inventory Handling: Provisions for dealing with remaining inventory, applicable when physical goods are involved in the agency relationship
2. Transition Period: Terms governing a transition period, if agreed between parties for smooth handover of business
3. Outstanding Orders: Handling of orders in progress or unfulfilled at time of termination
4. Continued Commission Arrangements: Terms for ongoing commission payments for deals initiated before termination
5. Customer Notification: Procedures for notifying customers of the termination, if applicable
6. Intellectual Property: Provisions regarding use of trademarks and intellectual property post-termination
7. Employee Matters: Provisions dealing with employees or representatives of the agent, if relevant
1. Schedule 1 - Original Agency Agreement: Copy of the original Agency Agreement and any amendments
2. Schedule 2 - Outstanding Accounts Statement: Detailed statement of all outstanding financial matters between parties
3. Schedule 3 - Inventory List: List of remaining inventory and agreed handling method, if applicable
4. Schedule 4 - Handover Schedule: Timeline and checklist for handover of materials, documents, and responsibilities
5. Schedule 5 - Settlement Calculation: Detailed calculation of final settlement amounts
6. Appendix A - Required Deregistration Forms: Forms required by Ministry of Commerce for agency deregistration
7. Appendix B - Power of Attorney: If required for deregistration or other post-termination actions
Authors
Retail
Manufacturing
Distribution
Technology
Pharmaceutical
Automotive
Consumer Goods
Industrial Equipment
Construction
Energy
Healthcare
Telecommunications
Financial Services
Professional Services
Import/Export
Legal
Commercial
Compliance
Business Development
Sales
Operations
Corporate Affairs
Regulatory Affairs
Risk Management
International Business
Legal Counsel
Commercial Director
Business Development Manager
Chief Executive Officer
Managing Director
Compliance Officer
Contract Manager
Regional Manager
Country Manager
Sales Director
Operations Manager
General Manager
Chief Commercial Officer
Legal Director
Regulatory Affairs Manager
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