The Termination Of Contract By Agreement is a vital legal document used when parties mutually decide to end their contractual relationship under Maltese law. This document is typically employed when the original contracting parties wish to formally conclude their obligations before the natural expiry of the contract, or when they want to document the terms of termination clearly. It addresses key aspects such as final payments, asset returns, and ongoing obligations, while ensuring compliance with Maltese Civil Code requirements. The agreement is particularly important in commercial relationships where a clean break is desired, and parties need to clearly document their release from future obligations while preserving certain rights or obligations that should survive termination. This document helps prevent future disputes by clearly documenting the parties' agreement to terminate and the terms of their separation.
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1. Parties: Identification of all parties to the termination agreement, including their full legal names and addresses
2. Background: Details of the original contract being terminated, including its date, purpose, and any relevant amendments
3. Definitions: Definitions of key terms used in the agreement, including reference to definitions from the original contract where applicable
4. Termination: Clear statement of mutual agreement to terminate the original contract and the effective date of termination
5. Settlement of Accounts: Details of any final payments, reconciliations, or financial settlements between the parties
6. Return of Property: Obligations regarding the return of any physical or intellectual property, documents, or other assets
7. Release and Waiver: Mutual release from obligations under the original contract and waiver of claims, subject to any surviving provisions
8. Surviving Provisions: Identification of any provisions from the original contract that will survive termination
9. Confidentiality: Ongoing obligations regarding confidential information and trade secrets
10. Governing Law: Confirmation that the agreement is governed by Maltese law
11. Execution: Signature blocks and execution formalities
1. Transition Arrangements: Used when there needs to be a handover period or specific transition plans
2. Third Party Rights: Include when there are third parties affected by the termination who need to be addressed
3. Tax Provisions: Required when there are specific tax implications that need to be addressed
4. Non-Compete/Non-Solicitation: Include when parties wish to maintain restrictions on competition or solicitation post-termination
5. Public Announcements: Needed for high-profile contracts where public communications about the termination need to be coordinated
6. Dispute Resolution: Include when parties want to specify a particular dispute resolution mechanism for any post-termination issues
1. Schedule 1 - Financial Settlement: Detailed breakdown of all financial settlements, including any final payments or adjustments
2. Schedule 2 - Property Register: List of all physical and intellectual property to be returned or transferred
3. Schedule 3 - Ongoing Obligations: Detailed list of any obligations that survive termination
4. Schedule 4 - Required Actions: Checklist of specific actions required to complete the termination process
5. Appendix A - Original Contract: Copy of the original contract being terminated
6. Appendix B - Powers of Attorney: If required, documentation proving authority to execute the termination
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