Document background
The Termination of Contract by Agreement is essential in Hong Kong's business environment when parties wish to formally end their contractual relationship by mutual consent. This document is particularly useful when circumstances have changed since the original contract was signed, or when both parties agree that terminating the relationship is in their best interests. It provides a clear framework for ending the contract while protecting all parties' interests under Hong Kong law. The agreement typically includes provisions for settling accounts, returning property, maintaining confidentiality, and addressing any surviving obligations. It's crucial for risk management and maintaining good business relationships, as it helps prevent future disputes by clearly documenting the terms of termination and mutual releases.
