The Termination Of Consultancy Agreement is a crucial document used when either a company or consultant wishes to formally end their professional relationship before the original agreement's intended completion date or at its natural conclusion. This document, structured according to Canadian legal requirements, serves to protect both parties' interests by clearly documenting the termination terms, final payments, ongoing obligations, and mutual releases. It's particularly important in Canadian business contexts where consulting relationships may be subject to both federal and provincial regulations, including tax considerations, intellectual property rights, and privacy laws. The agreement helps prevent future disputes by providing clarity on post-termination obligations and ensuring all parties have a clear understanding of their rights and responsibilities during and after the termination process.
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1. Parties: Identification of the company and consultant, including full legal names and addresses
2. Background: Reference to the original consultancy agreement, its date, and brief context for the termination
3. Definitions: Key terms used in the agreement, including references to the original agreement and any new terms specific to the termination
4. Termination Date: Clear specification of when the consultancy relationship will end
5. Final Fees and Expenses: Details of any outstanding payments, including final fees, expenses, and payment timeline
6. Return of Property: Requirements for returning company property, documents, and materials
7. Continuing Obligations: Specification of which original agreement obligations survive termination (e.g., confidentiality, non-compete)
8. Release of Claims: Mutual release of claims related to the consultancy relationship
9. Tax Matters: Confirmation of tax-related responsibilities and final tax documentation
10. Governing Law: Specification of applicable Canadian jurisdiction
11. Entire Agreement: Standard clause confirming this agreement supersedes previous arrangements regarding termination
12. Execution: Signature blocks and execution details
1. Transition of Services: Include when handover of work or knowledge transfer is required
2. Intellectual Property Assignment: Include when there are specific IP matters to be resolved upon termination
3. Post-Termination Cooperation: Include when consultant's assistance may be needed after termination
4. Reference and Announcements: Include when parties agree on how to communicate the termination externally
5. Severance Payment: Include when additional compensation is being provided beyond regular fees
6. Non-Disparagement: Include when parties wish to explicitly agree not to speak negatively about each other
7. Amendment to Restrictive Covenants: Include when modifying existing non-compete or non-solicitation provisions
8. Insurance and Indemnification: Include when specific insurance obligations or indemnities need to continue
1. Schedule A - Final Deliverables: List of all pending work items and their status
2. Schedule B - Payment Calculation: Detailed breakdown of final payments, including fees, expenses, and any adjustments
3. Schedule C - Company Property: Inventory of all company property to be returned
4. Schedule D - Surviving Provisions: Detailed list of specific clauses from original agreement that survive termination
5. Appendix 1 - Original Consultancy Agreement: Copy of the original agreement being terminated
Relevant legal definitions
Agreement
Original Consultancy Agreement
Business Day
Company
Consultant
Confidential Information
Effective Date
Final Fee
GST/HST
Intellectual Property Rights
Outstanding Deliverables
Parties
Project Materials
Company Property
Release
Services
Termination Date
Transition Period
Work Product
Surviving Provisions
Final Invoice
Applicable Law
Outstanding Expenses
Third Party Rights
Dispute
Original Consultancy Agreement
Business Day
Company
Consultant
Confidential Information
Effective Date
Final Fee
GST/HST
Intellectual Property Rights
Outstanding Deliverables
Parties
Project Materials
Company Property
Release
Services
Termination Date
Transition Period
Work Product
Surviving Provisions
Final Invoice
Applicable Law
Outstanding Expenses
Third Party Rights
Dispute
Clauses
Termination
Payment
Release and Waiver
Confidentiality
Intellectual Property
Return of Property
Non-Competition
Non-Solicitation
Tax Compliance
Mutual Release
Survival
Governing Law
Dispute Resolution
Severability
Entire Agreement
Amendment
Assignment
Notice
Force Majeure
Transition
Data Protection
Indemnification
Insurance
Further Assurance
Third Party Rights
Counterparts
Independent Legal Advice
Non-Disparagement
Payment
Release and Waiver
Confidentiality
Intellectual Property
Return of Property
Non-Competition
Non-Solicitation
Tax Compliance
Mutual Release
Survival
Governing Law
Dispute Resolution
Severability
Entire Agreement
Amendment
Assignment
Notice
Force Majeure
Transition
Data Protection
Indemnification
Insurance
Further Assurance
Third Party Rights
Counterparts
Independent Legal Advice
Non-Disparagement
Relevant Industries
Technology
Financial Services
Healthcare
Manufacturing
Professional Services
Energy
Construction
Education
Retail
Telecommunications
Mining
Real Estate
Environmental Services
Media and Entertainment
Transportation and Logistics
Relevant Teams
Legal
Human Resources
Finance
Procurement
Operations
Compliance
Risk Management
Project Management Office
Executive Leadership
Administrative Services
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Legal Counsel
HR Director
Procurement Manager
Project Manager
Operations Director
Department Head
Business Unit Manager
Contract Administrator
Finance Manager
HR Business Partner
Compliance Officer
Risk Manager
General Counsel
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