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Termination Of Consultancy Agreement for New Zealand

Termination Of Consultancy Agreement Template for New Zealand

A formal legal document governed by New Zealand law that outlines the terms and conditions for ending a consultancy engagement between a client and a consultant. The agreement addresses key aspects such as the effective termination date, final payment arrangements, return of property, ongoing confidentiality obligations, and mutual releases. It ensures compliance with New Zealand contract law while protecting both parties' interests during and after the termination process.

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What is a Termination Of Consultancy Agreement?

The Termination of Consultancy Agreement is a critical document used when parties wish to formally end their consultancy relationship before its natural conclusion or at the end of the agreed term. This document, compliant with New Zealand law, is essential for businesses and consultants to ensure a clear and legally sound separation. It typically includes provisions for final payments, intellectual property rights, confidentiality obligations, and the return of company property. The agreement helps prevent future disputes by clearly documenting the terms of separation and any ongoing obligations. It's particularly important in New Zealand's business environment where consultancy arrangements are common across various sectors and must comply with local commercial law requirements.

What sections should be included in a Termination Of Consultancy Agreement?

1. Parties: Identifies the parties to the agreement, including the client and consultant's full legal names and details

2. Background: References the original consultancy agreement, its date, and key terms, and states the mutual intention to terminate

3. Definitions: Defines key terms used in the agreement, including references to the original agreement and any new terms specific to the termination

4. Termination Date: Specifies the effective date of termination and any transition period if applicable

5. Outstanding Fees and Expenses: Details the final payment arrangements, including any fees for work completed up to the termination date

6. Return of Property: Obligations regarding the return of any company property, documents, or materials

7. Confidentiality: Confirms the ongoing obligations regarding confidential information post-termination

8. Mutual Release: Mutual release of claims related to the consultancy agreement, subject to the terms of the termination agreement

9. Surviving Obligations: Identifies which obligations from the original agreement survive termination

10. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and counterparts

What sections are optional to include in a Termination Of Consultancy Agreement?

1. Intellectual Property Assignment: Required when there needs to be a formal transfer or confirmation of IP rights for work completed during the consultancy

2. Non-Compete and Non-Solicitation: Include when post-termination restrictions are necessary and were not adequately covered in the original agreement

3. Transition Assistance: Include when the consultant needs to provide handover support or knowledge transfer

4. Disputed Amounts: Include when there are disputed fees or expenses that need specific resolution terms

5. References and Announcements: Include when parties want to agree on how the termination will be communicated externally

6. Tax Indemnity: Include when there are specific tax implications that need to be addressed

7. Dispute Resolution: Include when specific dispute resolution procedures are needed beyond the standard court process

What schedules should be included in a Termination Of Consultancy Agreement?

1. Schedule 1 - Original Consultancy Agreement: Copy or summary of the original consultancy agreement being terminated

2. Schedule 2 - Final Invoice and Payment Details: Detailed breakdown of final payments, including any outstanding fees, expenses, and payment terms

3. Schedule 3 - Company Property Register: List of all company property to be returned by the consultant

4. Schedule 4 - Completed Works Register: List of all works completed by the consultant up to the termination date

5. Schedule 5 - Handover Plan: If applicable, detailed plan for transitioning ongoing projects or responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Termination Letter

Cost

Free to use
Relevant legal definitions























Clauses



























Relevant Industries

Professional Services

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Relevant Roles

Chief Executive Officer

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HR Director

Procurement Manager

Project Manager

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Industries







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Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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