The Termination Of Agency Agreement Letter is a critical document used when a principal company wishes to formally end its commercial agency relationship in Germany. It must comply with the strict requirements of the German Commercial Code (Handelsgesetzbuch - HGB), particularly regarding notice periods, compensation claims, and post-contractual obligations. This document is essential when either party decides to terminate the agency relationship, whether due to strategic changes, performance issues, or mutual agreement. It should address key elements including the effective termination date, handling of outstanding commissions, client transition procedures, and the agent's statutory rights to compensation (Ausgleichsanspruch). The letter serves as formal documentation of the termination and helps ensure a smooth transition while minimizing legal risks under German commercial law.
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1. Letterhead and Date: Formal business letter header with sender's details and current date
2. Recipient Details: Full name and address of the commercial agent or agency company
3. Reference Line: Reference to the original agency agreement including its date and any reference numbers
4. Subject Line: Clear indication that this is a termination notice for the agency agreement
5. Confirmation of Termination: Explicit statement of termination and the effective date, citing relevant notice period under HGB §89
6. Legal Basis: Reference to termination provisions in the original agreement and/or applicable law
7. Acknowledgment of Statutory Rights: Recognition of agent's statutory rights including compensation claim (Ausgleichsanspruch) under HGB §89b
8. Next Steps: Instructions for winding down the agency relationship and immediate actions required
9. Closing and Signature: Formal closing, signature block with authorized signatory details
1. Outstanding Commissions: Section detailing any pending commission payments and settlement process, used when there are unresolved financial matters
2. Post-Contractual Obligations: Details of any post-termination obligations including non-compete provisions, used when such restrictions exist under HGB §90a
3. Handover Instructions: Specific instructions for transferring clients or ongoing business, used when complex handover is required
4. Dispute Resolution: Reference to dispute resolution procedures, used when there are potential areas of disagreement
5. Mutual Release: Statement of mutual release from obligations, used when parties agree to waive certain claims
6. Confidentiality Reminder: Restatement of confidentiality obligations, used when sensitive information was handled during the agency
1. Commission Calculation Sheet: Detailed calculation of outstanding commissions and compensation claim
2. Client List: List of clients and ongoing transactions requiring handover
3. Inventory of Materials: List of any company materials or property to be returned
4. Historical Performance Summary: Summary of agent's performance and earnings for compensation calculation
5. Handover Timeline: Detailed timeline for transitioning clients and business activities
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Retail
Insurance
Financial Services
Real Estate
Technology
Pharmaceuticals
Industrial Equipment
Consumer Goods
Automotive
Chemical Industry
Construction
Software and IT
Telecommunications
Relevant Teams
Legal
Sales
Commercial
Business Development
Compliance
Contract Administration
Agency Relations
Distribution
Partner Management
Executive Leadership
Risk Management
Relevant Roles
Sales Director
Commercial Director
Legal Counsel
Business Development Manager
Agency Relations Manager
Contract Manager
Chief Commercial Officer
Sales Operations Manager
Regional Sales Manager
Distribution Manager
General Counsel
Compliance Officer
Managing Director
Chief Executive Officer
Partnership Manager
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