The Termination Of Management Agreement is a crucial document used when parties wish to formally end their existing management arrangement in accordance with New Zealand law. It is typically employed when either party wishes to conclude their management relationship due to various circumstances such as completion of services, change in business direction, or mutual agreement to end the arrangement. This document is essential in the New Zealand business context as it provides legal certainty and protection for all parties by clearly defining the termination terms, final obligations, and post-termination responsibilities. It must comply with New Zealand's Contract and Commercial Law Act 2017 and other relevant legislation, while addressing specific industry requirements and commercial practices. The agreement includes comprehensive provisions for handling the transition period, settling outstanding matters, and ensuring proper handover of responsibilities, making it particularly relevant for business relationships where significant management responsibilities are being transferred or concluded.
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1. Parties: Identifies all parties to the termination agreement, including the full legal names and addresses of the management company and the client
2. Background: References the original management agreement, its date, and key terms, and briefly states the intention to terminate
3. Definitions: Defines key terms used in the termination agreement, including any terms carried over from the original agreement
4. Termination Date: Specifies the effective date of termination and any conditions precedent
5. Mutual Release: States that both parties release each other from future obligations under the original agreement, subject to specified exceptions
6. Outstanding Payments: Addresses any final payments, fees, or adjustments to be made between the parties
7. Handover Obligations: Details the transfer of documents, records, and responsibilities back to the client or to a new manager
8. Confidentiality: Confirms ongoing confidentiality obligations that survive termination
9. Execution: Signature blocks and execution requirements for all parties
1. Transition Period: Include when there needs to be a managed handover period between the outgoing manager and new management
2. Intellectual Property: Include when there are IP rights that need to be addressed post-termination
3. Non-Compete Obligations: Include when the original agreement contained non-compete provisions that need to be addressed
4. Employee Matters: Include when there are staff transfers or employment issues to be resolved
5. Dispute Resolution: Include when specific dispute resolution procedures need to be established for post-termination issues
6. Insurance: Include when there are specific insurance requirements or tail coverage needed
7. Return of Property: Include when physical assets or property need to be returned or transferred
1. Schedule 1 - Original Management Agreement: Copy or summary of the original management agreement being terminated
2. Schedule 2 - Handover Checklist: Detailed list of all items, documents, and responsibilities to be transferred
3. Schedule 3 - Final Account Statement: Statement of all outstanding financial matters and final reconciliation
4. Schedule 4 - Assets Register: List of any assets or property to be transferred or returned
5. Appendix A - Handover Timeline: Detailed timeline for the transition process if applicable
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