In any business, you will be entering into contracts with your customers, suppliers, partners or any other person you engage with.
But what happens if you want to end that contract?
Ending a legally binding contract can be a tricky task. When looking at ending a commercial relationship, a Deed of Termination can help parties avoid future disputes that would otherwise arise out of the termination of the agreement.
But what is actually involved in a Deed Of Termination?
Here’s what you need to know.
What Is A Deed Of Termination?
A Deed of Termination is a document signed by parties to confirm that a legally binding contract previously entered into is to be terminated. This typically relates to the ending of a commercial relationship between two parties prior to the natural expiration of the contract between them.
Depending on the circumstances, a Deed of Termination will set out any final payments to be made, releases of waivers of liability, and confidentiality obligations of the relevant parties.
Why Do I Need a Deed of Termination?
If you’re looking to end a commercial relationship, a Deed of Termination will allow you and the other party to release each other from the contract without triggering any of the termination clauses that could arise if you ended the contract without such a deed.
The Deed of Termination can also set out any provisions you wish to include in relation to what will happen upon the ending of the contract, such as any final payments or agreements.
What Is Included In a Deed of Termination?
A Deed of Termination typically includes clauses regarding:
- Date of termination
- Final payments to be made
- Confidentiality obligations
A good lawyer will be able to draft your Deed of Termination to ensure that this agreement to terminate your contract is clearly set out for all parties involved, and that you’re protected if a dispute arises.
At Sprintlaw, we focus on drafting comprehensive, easy to understand and user-friendly agreements for businesses.
Feel free to get in touch with us to get things started with your Deed of Termination! Our friendly team can be reached at 1800 730 617 or at firstname.lastname@example.org.
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