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Termination Due To Non Performance for Saudi Arabia

Termination Due To Non Performance Template for Saudi Arabia

This document is a comprehensive termination agreement template designed for use under Saudi Arabian law, specifically addressing situations where one party has failed to perform their contractual obligations. It incorporates key requirements from Saudi Labor Law, Sharia principles, and relevant commercial regulations, ensuring compliance with local legal frameworks. The agreement provides a structured approach to documenting the termination process, including specific instances of non-performance, breach notifications, and the consequences of termination, while protecting the terminating party's rights under Saudi law.

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Termination Due To Non Performance

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What is a Termination Due To Non Performance?

This Termination Due To Non Performance agreement is essential for businesses operating in Saudi Arabia who need to formally end a contractual relationship due to one party's failure to meet their obligations. It's specifically designed to comply with Saudi Arabian legal requirements, including Saudi Labor Law, Sharia principles, and commercial regulations. The document should be used when there is documented evidence of significant non-performance and after formal breach notices have been issued. It includes crucial elements such as specific instances of non-performance, reference to breach notifications, cure periods provided (if any), and detailed consequences of termination. The agreement is particularly important in the Saudi context where formal documentation of termination grounds is crucial for potential dispute resolution in local courts or arbitration centers.

What sections should be included in a Termination Due To Non Performance?

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and registration details

2. Background: Context of the original agreement, relationship between parties, and brief overview of the non-performance situation

3. Definitions: Key terms used in the agreement, including specific definition of 'non-performance' as applicable to this case

4. Original Agreement Reference: Details of the original agreement being terminated, including date, parties, and key obligations

5. Grounds for Termination: Specific instances of non-performance, with dates and details of breach notifications

6. Termination Process: Formal declaration of termination, effective date, and compliance with notice requirements

7. Consequences of Termination: Immediate effects of termination, including cessation of services/obligations

8. Outstanding Payments: Treatment of any payments due or to be withheld, including any penalties for non-performance

9. Return of Property: Requirements for return of any materials, equipment, or confidential information

10. Surviving Obligations: Clauses from original agreement that survive termination

11. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and relevant jurisdiction for disputes

What sections are optional to include in a Termination Due To Non Performance?

1. Mutual Release: Optional mutual release of claims, used when parties agree to waive future claims

2. Transition Arrangements: Include when handover of work/services is required

3. Damages Calculation: Details of any agreed compensation for losses, used when parties agree on specific damages

4. Non-Compete Obligations: Confirmation of ongoing non-compete obligations, if applicable from original agreement

5. Dispute Resolution: Alternative dispute resolution procedures, if parties wish to specify method beyond court jurisdiction

6. Public Announcements: Include when parties need to agree on public communications about the termination

What schedules should be included in a Termination Due To Non Performance?

1. Schedule 1 - Breach Notices: Copies of all formal breach notices issued

2. Schedule 2 - Performance Failures: Detailed log of non-performance instances with dates and impact

3. Schedule 3 - Outstanding Amounts: Calculation of any outstanding payments or penalties

4. Schedule 4 - Return of Property Schedule: List of all items to be returned by either party

5. Appendix A - Original Agreement: Copy of the original agreement being terminated

6. Appendix B - Correspondence Record: Key correspondence related to non-performance and termination process

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions




























Clauses






























Relevant Industries

Construction

Oil & Gas

Manufacturing

Professional Services

Technology

Healthcare

Real Estate

Financial Services

Retail

Telecommunications

Transportation & Logistics

Education

Government Services

Relevant Teams

Legal

Human Resources

Compliance

Operations

Commercial

Procurement

Risk Management

Contract Administration

Project Management

Executive Leadership

Business Development

Relevant Roles

Legal Director

Chief Legal Officer

Contract Manager

Compliance Officer

Human Resources Director

Project Manager

Commercial Director

Chief Executive Officer

Operations Manager

Risk Manager

Procurement Manager

Business Development Manager

General Counsel

Company Secretary

Chief Operating Officer

Industries






Teams

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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