Termination Of Agency Agreement for Malta

Termination Of Agency Agreement Template for Malta

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Termination Of Agency Agreement

"I need a Termination of Agency Agreement for ending a distribution agency relationship with my Malta-based agent effective March 1, 2025, including specific provisions for the handover of client relationships and payment of outstanding commissions in the pharmaceutical sector."

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What is a Termination Of Agency Agreement?

The Termination of Agency Agreement is a crucial document used when parties wish to formally end their commercial agency relationship in Malta. It is particularly important as it must comply with both Maltese Commercial Code requirements and EU Directive 86/653/EEC, which provides specific protections for commercial agents. This document is typically used when either the principal or agent wishes to end their relationship, whether by mutual consent or unilateral decision, and requires careful consideration of mandatory compensation or indemnity provisions under Maltese law. The agreement should address all aspects of the termination, including commission settlements, customer transitions, and post-termination obligations, while ensuring compliance with both local and EU regulatory requirements. Given Malta's position as an EU member state and its significance as a commercial hub, this document often has international business implications.

What sections should be included in a Termination Of Agency Agreement?

1. Parties: Identification of the Principal and Agent, including full legal names, registration details, and addresses

2. Background: Brief recital of the original agency agreement details and the circumstances leading to termination

3. Definitions: Definitions of key terms used throughout the agreement, including references to the original agency agreement

4. Termination Date: Clear specification of when the agency agreement will terminate or confirmation of past termination date

5. Acknowledgment of Termination: Mutual acknowledgment of the termination and its basis (e.g., mutual agreement, notice period, breach)

6. Final Commissions and Payments: Details of final commission calculations, payment terms, and settlement of outstanding amounts

7. Handover of Business: Requirements for the transfer of customers, ongoing business, and business materials

8. Confidentiality: Ongoing obligations regarding confidential information and trade secrets

9. Return of Property: Requirements for returning company property, documents, and materials

10. Post-Termination Restrictions: Non-compete and non-solicitation provisions that survive termination

11. Release and Waiver: Mutual release of claims and obligations, subject to the terms of the termination agreement

12. Governing Law and Jurisdiction: Confirmation of Maltese law as governing law and jurisdiction for disputes

What sections are optional to include in a Termination Of Agency Agreement?

1. Compensation or Indemnity: Required when the agent is entitled to compensation or indemnity under Maltese law, based on EU Directive requirements

2. Transition Services: Include when the agent needs to provide transition support after termination

3. Customer Communications: Include when specific arrangements are needed for communicating the termination to customers

4. Dispute Resolution: Alternative dispute resolution procedures if parties wish to include mediation or arbitration options

5. Tax Provisions: Include when there are specific tax implications that need to be addressed

6. Intellectual Property Rights: Include when there are specific IP rights that need to be addressed post-termination

7. Force Majeure: Include if termination is related to force majeure events

8. Surviving Representatives: Include when certain representative arrangements need to continue post-termination

What schedules should be included in a Termination Of Agency Agreement?

1. Schedule 1 - Original Agency Agreement: Copy or details of the original agency agreement being terminated

2. Schedule 2 - Final Commission Calculations: Detailed breakdown of final commission calculations and payment terms

3. Schedule 3 - Customer List: List of customers and ongoing transactions affected by the termination

4. Schedule 4 - Handover Checklist: Detailed list of items, documents, and materials to be returned or transferred

5. Schedule 5 - Post-Termination Obligations: Detailed list of ongoing obligations and restrictions after termination

6. Appendix A - Communication Template: Template for customer communications regarding the termination

Authors

Alex Denne

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

Relevant Industries

Retail

Manufacturing

Distribution

Import/Export

Financial Services

Insurance

Real Estate

Technology

Pharmaceuticals

Consumer Goods

Industrial Equipment

Automotive

Marine

Tourism

Professional Services

Relevant Teams

Legal

Commercial

Sales

Business Development

Operations

Compliance

Contract Administration

Corporate Secretariat

Risk Management

International Business

Relevant Roles

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contracts Manager

Chief Executive Officer

Managing Director

Operations Director

Sales Manager

Agency Manager

Compliance Officer

General Counsel

Commercial Manager

Distribution Manager

Regional Manager

Country Manager

Industries
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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