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Termination Of Agency Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Termination Of Agency Agreement

"I need a Termination of Agency Agreement for mutually ending our commercial agency relationship with our Saudi distributor of medical equipment, including a 3-month transition period starting March 1, 2025, and provisions for handling existing inventory and customer contracts."

Document background
The Termination of Agency Agreement is a crucial document used when parties wish to formally end their commercial agency relationship in Saudi Arabia. It is particularly important given the strict regulatory requirements under Saudi Commercial Agencies Law and the need for formal deregistration with the Ministry of Commerce. This document is typically used when parties mutually agree to end their relationship, when the original agreement expires without renewal, or when termination is necessary due to breach or other specified circumstances. The agreement must carefully address all aspects of the termination process, including financial settlements, handover procedures, and post-termination obligations, while ensuring compliance with both Sharia principles and commercial regulations. It serves as a critical tool for risk management and clean business separation in the Saudi Arabian market.
Suggested Sections

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

2. Background: Reference to the original Agency Agreement, its date, registration details with Ministry of Commerce, and brief description of the agency relationship

3. Definitions: Key terms used in the agreement, including reference to defined terms from the original Agency Agreement

4. Termination: Clear statement of termination, effective date, and basis for termination (mutual agreement, breach, etc.)

5. Mutual Release: Provisions for mutual release from obligations under the Agency Agreement, subject to completion of termination obligations

6. Post-Termination Obligations: Specific duties of both parties following termination, including return of materials, confidentiality, and non-compete obligations

7. Settlement of Accounts: Terms for final settlement of outstanding accounts, commissions, and financial obligations

8. Deregistration: Process and responsibilities for deregistering the agency from the Ministry of Commerce register

9. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and specification of dispute resolution mechanism

10. Execution: Signature blocks and execution requirements compliant with Saudi law

Optional Sections

1. Inventory Handling: Provisions for dealing with remaining inventory, applicable when physical goods are involved in the agency relationship

2. Transition Period: Terms governing a transition period, if agreed between parties for smooth handover of business

3. Outstanding Orders: Handling of orders in progress or unfulfilled at time of termination

4. Continued Commission Arrangements: Terms for ongoing commission payments for deals initiated before termination

5. Customer Notification: Procedures for notifying customers of the termination, if applicable

6. Intellectual Property: Provisions regarding use of trademarks and intellectual property post-termination

7. Employee Matters: Provisions dealing with employees or representatives of the agent, if relevant

Suggested Schedules

1. Schedule 1 - Original Agency Agreement: Copy of the original Agency Agreement and any amendments

2. Schedule 2 - Outstanding Accounts Statement: Detailed statement of all outstanding financial matters between parties

3. Schedule 3 - Inventory List: List of remaining inventory and agreed handling method, if applicable

4. Schedule 4 - Handover Schedule: Timeline and checklist for handover of materials, documents, and responsibilities

5. Schedule 5 - Settlement Calculation: Detailed calculation of final settlement amounts

6. Appendix A - Required Deregistration Forms: Forms required by Ministry of Commerce for agency deregistration

7. Appendix B - Power of Attorney: If required for deregistration or other post-termination actions

Authors

Alex Denne

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

Relevant legal definitions






























Clauses






























Relevant Industries

Retail

Manufacturing

Distribution

Technology

Pharmaceutical

Automotive

Consumer Goods

Industrial Equipment

Construction

Energy

Healthcare

Telecommunications

Financial Services

Professional Services

Import/Export

Relevant Teams

Legal

Commercial

Compliance

Business Development

Sales

Operations

Corporate Affairs

Regulatory Affairs

Risk Management

International Business

Relevant Roles

Legal Counsel

Commercial Director

Business Development Manager

Chief Executive Officer

Managing Director

Compliance Officer

Contract Manager

Regional Manager

Country Manager

Sales Director

Operations Manager

General Manager

Chief Commercial Officer

Legal Director

Regulatory Affairs Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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