TERMINATION CONTRACT REVIEW
Clause 2 of the Agreement provides the means that either party may terminate and
exit from this Agreement. It states as follows; –
“
Either party may terminate this Agreement for any reason so long as the
terminating party provides ninety (90) days written notice of such termination.
If Client terminates the Agreement within the first two years of signing this
Agreement, Client owes Company 30% of total gross sales revenue in place
of the 15% explained in Exhibit C for the remaining 90 days since the date of
termination notice was given. The 30% is due for each month within seven
days after the end of each month.”
If you want to terminate the Agreement from the above provision, you will have first
to issue ninety days’ written notice to the other party. Since the Agreement was
entered on XXXX, two years will lapse on XXXX. As per
the termination clause in the Agreement, if it is done within the first two years of
signing the Agreement, you will pay the other party 30% of the total gross sales
revenue for the ninety-day termination period, payable within seven days of each
month.
In light of all the above, to terminate the Agreement without making any payments,
you will have to wait after completing the first two years to issue the ninety days
written notice. If not, you will issue the 90-day written notice and make the necessary
30% payments for each month until the lapse of the termination period.
Kindly be advised.
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