This document template is designed for use when one party needs to terminate a contract due to another party's significant non-performance or breach of contractual obligations under New Zealand law. A Termination Due To Non Performance document is essential when formal documentation of contract termination is required, particularly in situations where there have been material breaches of contract terms. It incorporates requirements from the Contract and Commercial Law Act 2017 and other relevant New Zealand legislation, ensuring legal compliance and protecting the terminating party's interests. The document should be used after attempts to remedy the breach have failed and when there is clear evidence of non-performance. It includes crucial elements such as breach details, prior communications, legal basis for termination, and post-termination obligations, making it suitable for various commercial and business relationships where formal contract termination is necessary.
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1. Parties: Identification of all parties involved in the original contract and this termination notice
2. Background: Brief overview of the original contract, its key terms, and the relationship between the parties
3. Definitions: Key terms used throughout the termination document
4. Contract Details: Specific details of the original contract including date, reference numbers, and key obligations
5. Breach Details: Detailed description of the non-performance or breaches that form the basis for termination
6. Prior Notifications: Summary of previous communications regarding the breach and attempts to remedy
7. Legal Basis: Reference to relevant contract clauses and legal provisions supporting the termination
8. Termination Statement: Formal declaration of contract termination
9. Effective Date: Clear statement of when the termination takes effect
10. Outstanding Obligations: List of any remaining obligations or payments due from either party
11. Return of Property: Requirements for returning any property, documents, or materials
12. Confidentiality: Ongoing confidentiality obligations post-termination
13. Governing Law: Confirmation of New Zealand law as governing law and jurisdiction
1. Transition Arrangements: Details of any transitional period or handover requirements - include when there are ongoing projects or services that need careful handling
2. Dispute Resolution: Specific dispute resolution procedures - include when there's significant risk of dispute or high-value contracts
3. Survival Clauses: Clauses that continue after termination - include when there are important ongoing obligations
4. Insurance Claims: Provisions relating to insurance claims or coverage - include when insurance is a significant factor in the contract
5. Intellectual Property Rights: Post-termination IP arrangements - include when IP is involved in the contract
6. Third Party Rights: Impact on third party agreements or rights - include when third parties are affected by the termination
7. Damages Claim: Details of any damages being claimed - include when seeking compensation for breach
1. Schedule 1 - Contract Breach Evidence: Detailed documentation of all instances of non-performance with dates and specifics
2. Schedule 2 - Prior Communications: Copies of relevant correspondence regarding the breach and attempts to remedy
3. Schedule 3 - Financial Statement: Statement of outstanding amounts, payments due, or financial reconciliation
4. Schedule 4 - Property Inventory: List of all property, documents, or materials to be returned
5. Appendix A - Original Contract: Copy of the original contract being terminated
6. Appendix B - Performance Records: Relevant performance records, reports, or assessments demonstrating the breach
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