The Contract Termination by Agreement is essential when parties wish to formally end their contractual relationship by mutual consent under Swiss law. This document type is particularly useful when circumstances have changed since the original contract was formed, making termination the preferred option for all parties. It provides a structured approach to contract termination, ensuring all aspects of the unwinding process are properly addressed, including financial settlements, property returns, and ongoing obligations. The agreement is drafted in compliance with Swiss legal requirements, particularly the Swiss Code of Obligations, and can be customized for various business relationships, from simple service agreements to complex commercial contracts. It helps prevent future disputes by clearly documenting the terms of separation and mutual releases while preserving any agreed-upon surviving obligations.
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1. Parties: Identification of all contracting parties with full legal names and addresses
2. Background: Context of the original contract and the mutual decision to terminate, including reference to the original contract date and key terms
3. Definitions: Key terms used in the termination agreement, including 'Effective Date of Termination', 'Original Contract', and other relevant defined terms
4. Termination: Clear statement of the mutual agreement to terminate the Original Contract and the effective date of termination
5. Settlement of Accounts: Details of any final payments, reconciliation of accounts, or financial settlements between the parties
6. Return of Property: Obligations regarding the return of any physical or intellectual property, documents, or materials
7. Mutual Release: Mutual release of claims and obligations under the Original Contract, subject to any surviving provisions
8. Confidentiality: Ongoing obligations regarding confidential information and trade secrets
9. Governing Law: Confirmation of Swiss law as the governing law and jurisdiction for any disputes
10. Entire Agreement: Standard clause confirming this agreement represents the entire understanding between parties regarding the termination
1. Surviving Provisions: Used when certain provisions of the Original Contract need to survive termination
2. Non-Disparagement: Include when parties wish to prevent negative statements about each other post-termination
3. Transition Arrangements: Required when there needs to be a handover period or specific transition steps
4. Tax Provisions: Include when there are specific tax implications that need to be addressed
5. Insurance and Indemnities: Used when ongoing insurance obligations or specific indemnities need to be maintained
6. Non-Competition/Non-Solicitation: Include when parties wish to maintain restrictions on competition or solicitation post-termination
7. Public Announcements: Required when parties need to agree on how to communicate the termination externally
1. Schedule 1 - Original Contract: Copy or key details of the contract being terminated
2. Schedule 2 - Settlement Calculation: Detailed breakdown of any financial settlements or payments
3. Schedule 3 - Property Register: List of items to be returned or transferred between parties
4. Schedule 4 - Transition Timeline: If applicable, detailed timeline for transition activities and handover
5. Schedule 5 - Release Exceptions: List of any specific claims or rights that are not released under the mutual release
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