The Termination of Contract by Agreement is essential when parties mutually decide to end their contractual obligations before the natural expiry of the contract. This document, commonly used in Singapore's business environment, provides a clear framework for contract termination while protecting both parties' interests. It includes crucial elements such as the termination date, settlement terms, and release of obligations. The agreement ensures compliance with Singapore contract law and helps prevent future disputes by clearly documenting the parties' intention to terminate their contractual relationship.
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1. Parties: Identification of all contracting parties with full legal names and addresses
2. Background: Reference to original contract and reason for termination by mutual agreement
3. Definitions: Key terms used in the termination agreement
4. Termination Date: Specific date when the original contract will cease to be effective
5. Settlement of Obligations: Agreement on how outstanding obligations will be settled
6. Mutual Release: Release of parties from future obligations under the original contract
7. Governing Law: Confirmation that Singapore law governs the termination agreement
1. Confidentiality: Ongoing obligations regarding confidential information. Include when original contract contained confidentiality provisions or sensitive information was shared
2. Return of Property: Process for returning any physical or digital assets. Include when parties exchanged property or materials during the contract
3. Surviving Provisions: Identification of clauses that survive termination. Include when certain obligations need to continue post-termination
4. Non-Disparagement: Agreement not to make negative statements about other party. Include in sensitive terminations or high-profile relationships
5. Transition Arrangements: Process for winding down operations. Include when complex operational arrangements need to be unwound
1. Original Contract: Copy of the contract being terminated
2. Settlement Statement: Detailed breakdown of final payments or settlements
3. Asset Register: List of items to be returned or transferred
4. Outstanding Obligations Schedule: List of remaining obligations and how they will be discharged
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