This Termination Due To Non Performance agreement is essential when one party needs to formally end a contractual relationship due to the other party's failure to fulfill their contractual obligations under Hong Kong law. It is typically used when attempts to remedy the breach have failed or when the breach is so substantial that it undermines the entire purpose of the contract. The document provides a structured framework for termination, incorporating specific requirements under Hong Kong contract law, including detailed documentation of the breach, formal notice requirements, and provisions for the consequences of termination. It protects both parties' interests by clearly defining post-termination obligations, settling outstanding matters, and preventing future disputes. The agreement is particularly crucial in commercial relationships where clear documentation of the termination process and its effects is necessary for legal certainty and potential future enforcement.
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1. Parties: Identification of all parties to the agreement, including their full legal names, registration details, and addresses
2. Background: Context of the original agreement, its key terms, and the circumstances leading to termination
3. Definitions: Key terms used throughout the agreement, including references to the original agreement and relevant dates
4. Non-Performance Details: Specific description of the breach(es) or failure(s) to perform, including dates and impact
5. Termination: Formal declaration of termination, effective date, and legal basis for termination
6. Consequences of Termination: Immediate effects of termination, including cessation of obligations and services
7. Outstanding Payments: Settlement of any pending payments, refunds, or financial adjustments
8. Return of Property: Requirements for returning any physical or intellectual property
9. Confidentiality: Ongoing obligations regarding confidential information post-termination
10. Mutual Release: Release of claims and obligations, subject to specified exceptions
11. Survival Clauses: Provisions that continue to remain in effect after termination
12. Governing Law and Jurisdiction: Confirmation of Hong Kong law governance and jurisdiction for disputes
1. Transition Arrangements: Used when an orderly handover of services or responsibilities is required
2. Damages: Include when seeking specific compensation for losses due to non-performance
3. Non-Compete and Non-Solicitation: Include when protecting business interests post-termination is crucial
4. Dispute Resolution: Optional detailed dispute resolution procedures, including mediation provisions
5. Public Announcements: Include when parties need to agree on how to communicate the termination externally
6. Insurance and Indemnity: Include when specific ongoing protections are needed post-termination
7. Third Party Rights: Include when third parties have rights under the original agreement that need addressing
1. Schedule 1 - Original Agreement: Copy or reference to the original agreement being terminated
2. Schedule 2 - Non-Performance Evidence: Documentation of specific instances of non-performance
3. Schedule 3 - Outstanding Amounts: Detailed breakdown of any financial settlements or adjustments
4. Schedule 4 - Property Register: List of items to be returned or transferred between parties
5. Schedule 5 - Transition Plan: If applicable, detailed timeline and responsibilities for transition
6. Appendix A - Notices of Breach: Copies of formal notices issued regarding the non-performance
7. Appendix B - Response Correspondence: Relevant correspondence between parties regarding the non-performance
Relevant legal definitions
Agreement
Original Agreement
Effective Date
Termination Date
Non-Performance
Breach Notice
Confidential Information
Intellectual Property Rights
Business Day
Force Majeure Event
Losses
Material Breach
Outstanding Amounts
Parties
Related Companies
Representatives
Services
Surviving Provisions
Territory
Transition Period
Working Hours
Dispute
Notice
Claim
Completion Date
Defaulting Party
Non-Defaulting Party
Deliverables
Performance Standards
Property
Relevant Period
Settlement Sum
Termination Notice
Transition Plan
Outstanding Obligations
Governing Law
Hong Kong
Original Agreement
Effective Date
Termination Date
Non-Performance
Breach Notice
Confidential Information
Intellectual Property Rights
Business Day
Force Majeure Event
Losses
Material Breach
Outstanding Amounts
Parties
Related Companies
Representatives
Services
Surviving Provisions
Territory
Transition Period
Working Hours
Dispute
Notice
Claim
Completion Date
Defaulting Party
Non-Defaulting Party
Deliverables
Performance Standards
Property
Relevant Period
Settlement Sum
Termination Notice
Transition Plan
Outstanding Obligations
Governing Law
Hong Kong
Clauses
Interpretation
Definitions
Non-Performance
Termination
Payment Obligations
Return of Property
Confidentiality
Intellectual Property
Data Protection
Mutual Release
Representations and Warranties
Indemnification
Liability
Force Majeure
Assignment
Severability
Entire Agreement
Amendment
Waiver
Notice
Third Party Rights
Governing Law
Jurisdiction
Dispute Resolution
Survival
Transition
Non-Compete
Non-Solicitation
Public Announcements
Further Assurance
Costs
Set-off
Time of Essence
Counterparts
Definitions
Non-Performance
Termination
Payment Obligations
Return of Property
Confidentiality
Intellectual Property
Data Protection
Mutual Release
Representations and Warranties
Indemnification
Liability
Force Majeure
Assignment
Severability
Entire Agreement
Amendment
Waiver
Notice
Third Party Rights
Governing Law
Jurisdiction
Dispute Resolution
Survival
Transition
Non-Compete
Non-Solicitation
Public Announcements
Further Assurance
Costs
Set-off
Time of Essence
Counterparts
Relevant Industries
Technology
Manufacturing
Financial Services
Professional Services
Construction
Retail
Healthcare
Telecommunications
Real Estate
Logistics
Energy
Media and Entertainment
Education
Hospitality
Consulting
Relevant Teams
Legal
Procurement
Operations
Commercial
Compliance
Risk Management
Contract Management
Business Development
Finance
Executive Leadership
Corporate Governance
Project Management
Relevant Roles
Legal Counsel
Contract Manager
Commercial Director
Chief Legal Officer
Procurement Manager
Business Development Manager
Operations Director
Company Secretary
Risk Manager
Compliance Officer
Project Manager
Account Manager
CEO
CFO
COO
General Manager
Head of Legal
Head of Procurement
Head of Operations
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