The Termination of Independent Contractor Agreement is essential when parties wish to formally conclude their business relationship in compliance with Canadian law. This document is typically used when either party wishes to end the contract early, the project has been completed, or there is a mutual decision to cease the working relationship. It includes crucial provisions for final payments, intellectual property rights, confidentiality obligations, and the return of company assets. The agreement ensures legal compliance across Canadian jurisdictions while providing clear documentation of the termination terms, helping prevent future disputes. It's particularly important in protecting both parties' interests by clearly defining post-termination obligations and responsibilities.
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1. Parties: Identification of the company and the independent contractor
2. Background: Reference to the original agreement and the mutual decision to terminate
3. Definitions: Key terms used in the termination agreement
4. Termination Date: Specific date when the contractor relationship will end
5. Final Payment Terms: Details of final compensation, including outstanding invoices and expenses
6. Return of Property: Requirements for returning company property, equipment, and documents
7. Intellectual Property Rights: Confirmation of ownership and transfer of any IP created during the contract period
8. Confidentiality: Ongoing obligations regarding confidential information
9. Mutual Release: Release of claims between parties
10. Survival: Provisions that continue after termination
11. Governing Law: Specification of applicable Canadian jurisdiction
12. Entire Agreement: Statement that this represents the complete agreement regarding termination
1. Transition of Services: Used when the contractor needs to transfer ongoing work or knowledge to others
2. Non-Competition: Include when reinforcing existing non-compete provisions
3. Non-Solicitation: Include when reinforcing restrictions on soliciting clients or employees
4. Reference and Future Communications: Include when parties agree on how they will communicate about the termination
5. Tax Indemnification: Include when there are specific tax-related concerns
6. Dispute Resolution: Include when specific dispute resolution procedures are needed
7. Insurance: Include when addressing ongoing insurance requirements or tail coverage
8. Severance Payment: Include when offering additional payment beyond regular fees
1. Schedule A - Outstanding Deliverables: List of work items to be completed before termination
2. Schedule B - Final Payment Calculation: Detailed breakdown of final payments, including fees and expenses
3. Schedule C - Company Property Inventory: List of all company property to be returned
4. Schedule D - Intellectual Property Register: Inventory of IP created during the contract period
5. Appendix 1 - Release Form: Formal release of claims document
6. Appendix 2 - Confidential Information Summary: List of specific confidential information possessed by contractor
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