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Termination Of Contract By Agreement Template for New Zealand

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Key Requirements PROMPT example:

Termination Of Contract By Agreement

"I need a Termination of Contract by Agreement to end a software development service contract with ABC Tech Limited, with the termination to take effect on March 15, 2025, including provisions for final payment of outstanding invoices and return of all project documentation."

Document background
The Termination of Contract by Agreement is a crucial legal document used when parties mutually decide to end their contractual relationship before its natural conclusion or specified end date. This document is particularly relevant in New Zealand's business environment, where it must comply with local contract law, especially the Contract and Commercial Law Act 2017. It's commonly used when business circumstances change, relationships evolve, or parties agree that early termination serves their mutual interests. The agreement typically includes provisions for final settlements, releases from obligations, handling of confidential information, and any post-termination arrangements. It provides a clear framework for ending the contract while minimizing legal risks and ensuring all parties understand their rights and obligations during and after the termination process.
Suggested Sections

1. Parties: Identifies all parties to the termination agreement, including their legal names, addresses, and company details if applicable

2. Background: References the original contract being terminated, its date, and brief context for the termination

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

4. Termination Date: Specifies the effective date of termination and any conditions precedent

5. Mutual Agreement to Terminate: States the parties' express agreement to terminate the original contract

6. Settlement of Accounts: Details the final settlement of any outstanding payments or financial obligations

7. Release and Discharge: Mutual release from obligations under the original contract

8. Survival Clauses: Identifies which provisions from the original contract survive termination

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

10. Confidentiality: Ongoing obligations regarding confidential information

11. Governing Law: Confirms New Zealand law governs the termination agreement

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Intellectual Property Rights: Addresses the handling of any IP rights post-termination, used when IP was involved in the original contract

2. Transition Arrangements: Details any transitional period or handover requirements, used when services need to be wound down gradually

3. Non-Disparagement: Mutual agreements not to speak negatively about each other, used in sensitive or high-profile terminations

4. Ongoing Obligations: Specifies any continuing obligations beyond standard confidentiality, used when certain duties must continue

5. Third Party Rights: Addresses impact on any third party beneficiaries, used when other parties' rights are affected

6. Dispute Resolution: Specific dispute resolution procedures, used when parties want to specify how future disputes will be handled

7. Insurance and Indemnities: Handling of insurance obligations and ongoing indemnities, used when risk allocation needs to be addressed

Suggested Schedules

1. Schedule 1 - Original Contract: Copy or details of the contract being terminated

2. Schedule 2 - Settlement Amount Calculation: Detailed breakdown of any final payments or settlements

3. Schedule 3 - Outstanding Deliverables: List of any items or services still to be delivered before termination

4. Schedule 4 - Property Register: Inventory of property to be returned or transferred between parties

5. Appendix A - Release Form: Standard form for mutual release of obligations

6. Appendix B - Handover Checklist: Checklist for completion of termination requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Professional Services

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Legal

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Risk and Compliance

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Legal Counsel

Contract Manager

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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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