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Termination Of Agency Agreement

Termination Of Agency Agreement Template for England and Wales

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Key Requirements PROMPT example:

Termination Of Agency Agreement

"Need a Termination of Agency Agreement to end a five-year commercial agency relationship with our European sales agent, effective March 1, 2025, including compensation calculations and provisions for transferring customer relationships to our new agent."

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Document background
The Termination of Agency Agreement is essential when parties wish to formally end their agency relationship under English and Welsh law. It provides clarity and protection for both principal and agent, ensuring a clean break while addressing crucial elements such as final payments, property return, and ongoing obligations. This document is particularly important for compliance with the Commercial Agents Regulations 1993, especially regarding compensation rights. It should be used whenever an agency relationship is being terminated, whether by mutual consent or unilateral decision, to prevent future disputes and ensure all parties understand their rights and obligations post-termination.
Suggested Sections

1. Parties: Identification of the Principal and Agent with full legal names and addresses

2. Background: Brief description of the existing agency relationship and reason for termination

3. Definitions: Key terms used throughout the agreement

4. Termination Date: Specific date when the agency relationship will end

5. Outstanding Payments: Settlement of commission and other payments due

6. Return of Property: Provisions for return of materials, documents, and equipment

7. Confidentiality: Ongoing obligations regarding confidential information

Optional Sections

1. Compensation/Indemnity: Required for commercial agents under the Commercial Agents Regulations - includes calculations and payment terms

2. Post-Termination Restrictions: Non-compete and non-solicitation provisions to protect business interests

3. Handover Provisions: Detailed process for transferring ongoing business and client relationships

4. Intellectual Property: Provisions regarding use and transfer of IP rights post-termination

Suggested Schedules

1. Schedule of Outstanding Commissions: Detailed list of pending commissions and payment schedule

2. Schedule of Property to be Returned: Inventory of all items to be returned to the principal

3. Schedule of Ongoing Contracts: List of contracts that need to be transferred or managed

4. Data Transfer Protocol: Procedures for handling customer data transfer in compliance with GDPR

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions





























Clauses




























Industries

Commercial Agents (Council Directive) Regulations 1993: Key legislation governing commercial agency relationships, covering compensation/indemnity rights upon termination, notice period requirements, and mandatory provisions that cannot be contracted out

Common Law Principles of Agency: Fundamental principles governing agency relationships including fiduciary duties, authority termination, and principal and agent obligations

Contract Law: Basic contract law principles including the Law of Contract, Unfair Contract Terms Act 1977, and Consumer Rights Act 2015 where applicable

Partnership Act 1890: Relevant legislation when the agency relationship could be interpreted as a partnership arrangement

Companies Act 2006: Important when either party is a registered company, particularly regarding the authority of company representatives

Data Protection Act 2018 and UK GDPR: Legislation governing the handling of customer/client data post-termination and data transfer obligations

Competition Law: Including Competition Act 1998, relevant for post-termination restrictions and competition considerations

Intellectual Property Laws: Including Copyright, Designs and Patents Act 1988 and Trade Marks Act 1994, governing the handling of IP rights post-termination

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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