The Termination of Consultancy Agreement is a crucial document used when parties wish to formally end their consultancy relationship in Malaysia. It's typically employed when either party wishes to terminate the arrangement before its natural conclusion, or when documenting the agreed end of a consultancy engagement. The document addresses key aspects such as final settlements, intellectual property rights, confidentiality obligations, and post-termination arrangements, ensuring compliance with Malaysian contract law and protecting both parties' interests. This agreement is particularly important in professional services contexts where clear documentation of the termination terms and ongoing obligations is essential for risk management and legal certainty.
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1. Parties: Identification of the company and consultant, including full legal names, registration numbers, and addresses
2. Background: Brief recap of the original consultancy agreement and the context leading to termination
3. Definitions: Key terms used throughout the agreement, including references to the original consultancy agreement
4. Termination: Clear statement of termination, effective date, and basis for termination
5. Final Payment and Settlement: Details of any final payments, fees, or reimbursements due to the consultant
6. Return of Property: Requirements for returning company property, documents, and materials
7. Confidentiality: Ongoing obligations regarding confidential information post-termination
8. Intellectual Property: Confirmation of IP ownership and transfer of any pending work
9. Mutual Release: Release of claims and liabilities between parties
10. Continuing Obligations: Identification of which obligations from the original agreement survive termination
11. Governing Law: Confirmation of Malaysian law as governing law and jurisdiction
12. Execution: Signature blocks and execution details
1. Non-Compete Obligations: Include when the original agreement contained non-compete provisions that need to be addressed or modified
2. Transition Arrangements: Include when there's a need for knowledge transfer or handover of ongoing projects
3. Reference and Announcements: Include when parties want to agree on how the termination will be communicated to third parties
4. Tax Indemnity: Include when there are significant tax implications that need to be addressed
5. Dispute Resolution: Include when parties want to specify detailed dispute resolution procedures
6. Insurance: Include when there are ongoing insurance obligations or claims to be addressed
7. Third Party Rights: Include when there are third party beneficiaries or rights that need to be addressed
1. Schedule 1 - Final Payment Calculation: Detailed breakdown of final payments, including any pro-rated fees, expenses, or deductions
2. Schedule 2 - Company Property List: Itemized list of company property to be returned
3. Schedule 3 - Ongoing Projects: List of projects requiring transition or handover
4. Schedule 4 - Surviving Obligations: Detailed list of specific clauses from original agreement that survive termination
5. Appendix A - Original Consultancy Agreement: Copy of the original consultancy agreement being terminated
6. Appendix B - Final Release Form: Form documenting mutual release of claims
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