The Termination of Sales Representative Agreement is essential when parties wish to formally end their existing sales representation arrangement in Pakistan. This document is typically used when either the principal company or the sales representative decides to end their commercial relationship, or when both parties mutually agree to terminate their arrangement. It addresses critical elements including final commission payments, handling of ongoing business, customer relationships, and confidential information. The agreement must comply with Pakistani contract law, particularly the Contract Act 1872 and relevant commercial regulations. It provides comprehensive coverage of termination terms, transition arrangements, and mutual releases, while protecting both parties' interests during and after the termination process.
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1. Parties: Identification of the principal company and the sales representative, including full legal names and addresses
2. Background: Reference to the original agreement, its date, and brief context for the termination
3. Definitions: Key terms used in the termination agreement, including relevant terms carried over from the original agreement
4. Termination Date: Clear specification of when the original agreement will terminate
5. Outstanding Commissions: Treatment of commissions earned but not paid, and commissions on pending sales
6. Return of Property: Requirements for returning company property, materials, and confidential information
7. Mutual Release: Release of claims and obligations between parties, subject to terms of the termination agreement
8. Continuing Obligations: Obligations that survive termination, such as confidentiality and non-disclosure
9. Final Settlement: Terms of final payment or settlement between parties
10. Governing Law: Confirmation of Pakistani law as governing law and jurisdiction
11. Entire Agreement: Statement that this document represents the complete agreement regarding termination
1. Transition Period: Used when a handover period is required to transition customers or ongoing business
2. Non-Compete Obligations: Include when enforcing or modifying existing non-compete provisions
3. Customer Communication: Include when specific requirements exist for how and when customers are notified
4. Inventory Handling: Required when the representative holds product inventory that needs to be returned or settled
5. Intellectual Property Rights: Include when there are specific IP matters to address post-termination
6. Dispute Resolution: Optional detailed dispute resolution process if not covered in original agreement
7. Tax Matters: Include when specific tax implications need to be addressed in the termination
8. Assignment of Contracts: Used when existing customer contracts need to be reassigned
1. Schedule A - Commission Calculation: Detailed breakdown of final commission calculations and payment schedule
2. Schedule B - Outstanding Accounts: List of all pending sales and accounts to be transferred or settled
3. Schedule C - Company Property: Itemized list of all company property to be returned
4. Schedule D - Territory Definition: Definition of territory and customers covered under the agreement
5. Schedule E - Settlement Statement: Comprehensive financial settlement statement including all payments and deductions
6. Appendix 1 - Handover Checklist: Detailed checklist for completing all termination obligations
7. Appendix 2 - Customer List: List of customers and pending transactions affected by the termination
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