Termination Of Dealership Agreement Template for Malaysia

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Key Requirements PROMPT example:

Termination Of Dealership Agreement

"I need a Termination of Dealership Agreement for my Malaysian automotive parts manufacturing company to mutually end our relationship with our Penang-based dealer, with a planned termination date of March 15, 2025, including a 3-month transition period for inventory clearance."

Document background
The Termination of Dealership Agreement is a crucial document used when parties wish to formally end their existing dealership relationship in Malaysia. It is typically employed when either party decides to terminate the relationship due to various reasons such as business restructuring, performance issues, or mutual agreement to end the arrangement. The document must comply with Malaysian legal requirements, including the Contracts Act 1950 and relevant industry regulations. It comprehensively addresses all aspects of the termination, including financial settlements, inventory handling, intellectual property rights, and ongoing obligations. This document is essential for protecting both parties' interests and ensuring a clear, legally-binding conclusion to the business relationship while minimizing the risk of future disputes.
Suggested Sections

1. Parties: Identification of the manufacturer/supplier and the dealer

2. Background: Reference to the original dealership agreement and context for termination

3. Definitions: Key terms used in the agreement including reference to defined terms in the original agreement

4. Termination: Clear statement of termination and effective date

5. Outstanding Obligations: Settlement of accounts, payments, and obligations between parties

6. Inventory Handling: Treatment of remaining inventory, return or purchase arrangements

7. Intellectual Property: Cessation of IP rights, removal of signage, return of marketing materials

8. Confidentiality: Ongoing confidentiality obligations and return of confidential information

9. Customer Records: Transfer or handling of customer data and records

10. Mutual Release: Release of claims and liabilities between parties

11. Governing Law: Confirmation of Malaysian law as governing law

12. Execution: Signature blocks and execution formalities

Optional Sections

1. Warranties: Handling of ongoing warranty obligations - include if there are existing warranty commitments

2. Transition Assistance: Specific provisions for transition to new dealer - include if replacement dealer exists

3. Non-Compete: Post-termination competition restrictions - include if required by business context

4. Employee Matters: Handling of employee transfers or obligations - include if employees are affected

5. Tax Matters: Specific tax considerations - include if there are complex tax implications

6. Dispute Resolution: Specific dispute resolution mechanisms - include if standard courts are not preferred

Suggested Schedules

1. Schedule 1 - Original Agreement: Copy or details of the original dealership agreement being terminated

2. Schedule 2 - Outstanding Accounts: Detailed list of all outstanding financial matters between parties

3. Schedule 3 - Inventory List: Comprehensive list of remaining inventory and agreed handling

4. Schedule 4 - Intellectual Property: List of IP items to be returned or ceased using

5. Schedule 5 - Transition Timeline: Detailed timeline for various termination activities

6. Schedule 6 - Customer Contracts: List of ongoing customer contracts and their handling

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

Relevant Industries

Automotive

Electronics

Consumer Goods

Industrial Equipment

Technology

Telecommunications

Pharmaceutical

Manufacturing

Retail

Heavy Machinery

Relevant Teams

Legal

Sales

Commercial

Operations

Business Development

Compliance

Risk Management

Distribution

Corporate Affairs

Finance

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Legal Counsel

Contract Manager

Business Development Manager

Operations Manager

Distribution Manager

Dealer Principal

General Manager

Compliance Officer

Risk Manager

Industries
Teams

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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