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Termination Of Agency Agreement

Termination Of Agency Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Termination Of Agency Agreement

"I need a Termination of Agency Agreement for my UAE-based technology distribution business, where we're mutually agreeing to end our agency relationship with our German software principal effective March 1, 2025, with a 3-month transition period for ongoing projects."

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Document background
The Termination Of Agency Agreement is a critical document used when parties wish to formally end their commercial agency relationship in the United Arab Emirates. It is particularly important given the protective nature of UAE agency laws, which provide significant rights to registered commercial agents. This document must comply with Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, ensuring proper notice periods, settlement of accounts, and addressing post-termination obligations. It is typically used when either the principal or agent wishes to end the relationship, when mutual termination is agreed, or when circumstances necessitate the conclusion of the agency arrangement. The agreement includes comprehensive provisions for financial settlements, return of materials, confidentiality obligations, and necessary notifications to authorities, particularly important for registered agencies in the UAE Commercial Agency Register.
Suggested Sections

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

2. Background: Brief history of the agency relationship, reference to original agreement, and reason for termination

3. Definitions: Key terms used throughout the agreement, including reference to the Original Agency Agreement

4. Termination: Clear statement of termination, effective date, and compliance with notice requirements under UAE law

5. Settlement of Accounts: Financial settlement terms, including commission payments, outstanding invoices, and final accounting

6. Return of Materials: Provisions for return of marketing materials, documentation, customer lists, and other principal property

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

8. Non-Compete and Non-Solicitation: Post-termination restrictions in compliance with UAE law

9. Mutual Releases: Mutual release of claims related to the agency relationship

10. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction for disputes

11. Execution: Signature blocks and execution requirements

Optional Sections

1. Transition Period: Terms for temporary continuation of certain activities to ensure smooth handover - include when there are ongoing projects or customer relationships

2. Inventory Handling: Provisions for dealing with remaining inventory - include when physical goods are involved

3. Customer Notifications: Process for informing customers of the termination - include when there is significant customer base

4. Intellectual Property Rights: Provisions for handling IP rights post-termination - include when IP was licensed during agency

5. Government Notifications: Requirements for notifying relevant authorities - include for registered agencies

6. Dispute Resolution: Alternative dispute resolution mechanisms - include when parties prefer arbitration over court proceedings

7. Survival Clauses: Specific provisions that survive termination - include when there are long-term obligations

Suggested Schedules

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

2. Schedule 2 - Financial Settlement Statement: Detailed breakdown of final financial settlements, including calculations of outstanding commissions

3. Schedule 3 - Handover Checklist: List of items, documents, and materials to be returned or transferred

4. Schedule 4 - Ongoing Matters: List of any ongoing transactions or matters requiring attention during transition

5. Appendix A - Required Notices: Copies of formal notices required under UAE law

6. Appendix B - Power of Attorney Revocation: Formal revocation of any powers of attorney granted during agency

Authors

Alex Denne

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

alex.den.21@genieai.co
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Relevant Industries

Retail

Consumer Goods

Manufacturing

Automotive

Technology

Healthcare and Pharmaceuticals

Construction and Building Materials

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Relevant Teams

Legal

Commercial

Business Development

Sales

Operations

Compliance

Finance

Corporate Secretariat

Risk Management

International Trade

Relevant Roles

Chief Executive Officer

Managing Director

Commercial Director

Legal Counsel

Contracts Manager

Business Development Manager

Sales Director

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Compliance Officer

General Manager

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Distribution Manager

Company Secretary

Legal Director

Chief Legal Officer

Industries





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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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