The Termination Of Agency Agreement Letter is utilized when a principal wishes to formally end their business relationship with an appointed agent. This document is crucial in the United States legal framework as it provides clear documentation of the termination, protecting both parties' interests. It typically includes the termination date, reasons (if applicable), remaining obligations, and any post-termination requirements. The letter helps prevent future disputes by clearly establishing the end of the agent's authority to act on behalf of the principal.
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1. Date and Addresses: Current date and full addresses of both parties - the Principal and the Agent
2. Reference Line: Reference to the Original Agency Agreement including date of execution and parties involved
3. Formal Notice: Clear and unambiguous statement of intent to terminate the agency agreement
4. Effective Date: Specific date when the termination becomes effective, including any notice period requirements
5. Basis for Termination: Brief explanation of the grounds for termination, if applicable and appropriate to include
6. Signature Block: Space for signature, name, and title of the party issuing the termination notice
1. Outstanding Obligations: Details of any remaining duties, payments, or commissions to be fulfilled by either party
2. Return of Property: Instructions regarding the return of any materials, documents, equipment, or other property
3. Confidentiality Reminder: Reminder of ongoing confidentiality obligations that survive termination
4. Non-Compete Reference: Reference to any continuing non-compete obligations as per the original agreement
5. Transition Plan: Overview of how ongoing matters will be handled or transferred
1. Schedule A - Outstanding Commissions: Detailed list of any pending commissions or payments due to the Agent
2. Schedule B - Property Inventory: Comprehensive list of items to be returned to the Principal
3. Schedule C - Ongoing Matters: List of current client matters or projects requiring transition or completion
4. Schedule D - Contact Information: Updated contact information for both parties for post-termination communications
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