Document background
The Termination of Agency Contract is a crucial document used when parties wish to formally end their commercial agency relationship in Saudi Arabia. It is particularly important given the strict regulatory requirements under Saudi Commercial Agencies Law and the need for proper de-registration with the Ministry of Commerce. This document is typically used when parties mutually agree to end their relationship, when the original contract expires, or when termination is required due to business changes or performance issues. The agreement must address various aspects including financial settlements, handover of materials, customer transition, and ongoing obligations, while ensuring compliance with both statutory requirements and Shari'ah principles. The document should be carefully drafted to protect both parties' interests and prevent future disputes, particularly given the significant commercial implications in the Saudi Arabian market.
