Drafting a Letter for Termination of Consultancy Agreement

In this blog post, you will learn about the entire concept of how to draft a termination letter of Consulting Agreements in a simple and clear-cut way.

When two parties work together, they do so under the terms of a consultant agreement in which both parties agree on the working conditions of the other. Similarly, whether a small or large organisation hosts a workshop with a consultant, the labour is almost always contractual. 

The contract should spell out all of the parties’ obligations and responsibilities. As a result, without a contract or agreement with the consultant agency, the work done in collaboration with them cannot exist. The agreement establishes a framework for the consultancy’s work based on the needs and desires of the customers. When the parties disagree, the consultant contract may be terminated for a variety of reasons.

Clause for Contraction Agreement

• Mutual Non-interference and Non-disparagement

The Consultant agrees to maintain a cooperative attitude toward the Company, to voluntarily resign all positions with the Company, and to promptly and cooperatively assist in the execution of all necessary documents and paperwork, not to disrupt the Company’s ongoing business, and not to make disparaging remarks about the Company. The Company agrees to maintain a cooperative attitude toward the Consultant and to refrain from disparaging the Consultant. Except as expressly provided in this Agreement, the Parties agree to act in good faith in each other’s conduct and to refrain from interfering in the business affairs of the other Party.

• Confidentiality

Consultant and the company agree to keep the existence and terms of this agreement strictly confidential unless otherwise specified in this Agreement or required by law. Consultant’s legal counsel, tax advisor, or taxing authorities may be informed of the terms of this Agreement.

The Company may disclose the terms of this Agreement to its counsel, accounting personnel, and auditor. To anyone else who inquires about Consultant’s engagement with the Company or this Agreement, Consultant and the Company agree to only respond with the statement that the consulting relationship was mutually terminated by the Parties.

Reasons for Termination of Consultancy Agreement 

Both parties agree that the Termination of Consultancy Agreement would be done by mutual consent and hereby waive any notice requirements under the Consulting Agreement.

This letter is to terminate the draft consultancy agreement with you. There are several reasons for the termination of our business relationship, the main one being that we have decided to explore other avenues in our marketing strategy and will no longer be working together as consultants. You may also choose to continue your relationship with us in another capacity.

There are other reasons for ending our relationship which is as follows

1. As you know, our company has entered into a consulting agreement with you for your company’s project. Under the terms of this agreement, we have performed all that was expected of us in exchange for a monthly fee. Due to a number of developments within your organisation
2. Due to unfair business practices, we found it unbearable to work
3. We feel we could be supportive in our areas of expertise by assuming the position that it is just not right fit between our organisations
4. In retrospect we can see that there were too many things we disagreed on and the relationship was too antagonistic. As much as we hate to lose someone like you, it makes sense for us to part ways and not waste time arguing about details when both sides have enough work on their plate.

Things to Know While Terminating a Consulting Agreement 

1. If a consultant is terminated due to performance issues, the client must bear the costs of all ongoing work.  Those costs might include finding someone else and then paying them a retainer or directly hiring them, but they will not be reimbursed. 
2. If a consultant resigns without cause at any time during the term of the agreement and refuses to perform, any fees continue until completion of the project or payment in full is made, whichever is sooner. 
3. Any additional assignments are completely at your discretion once the consulting agreement has ended.

Letter for Termination in Consultancy Agreement

Thanking You Note After the Termination of Consultancy Agreement

Thank you for your time and effort in preparing our presentation. It has been a pleasure working with you and we look forward to future opportunities. It was unfortunate that your services were not needed for the past few weeks, but we thank you for all the work you have done. We want to thank you for your hard work, dedication and commitment over the past few years. 

We wish things had gone differently but nevertheless, we appreciate the time that we have spent together and would like to keep in touch in regards to your career objectives going forward. Please feel free to contact me if there is something in particular that you would like working with me on. 

Waiver in Respect of Consulting Agreement

No waiver by either Party at any time of any breach or compliance by the other Party with any condition or provision of this Agreement to be performed by the other Party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or any prior or subsequent time.

Conclusion

The consultant contract may be terminated by providing a letter of termination. However, before delivering the letter, it is critical to serving a notice outlining the reason for the party’s request to terminate the consultant contract. It is best to consult an expert, like Vakilsearch when drafting a legal notice and contract. Apart from saving time, it also makes things easier and more technical.

Also Read:

• What should be included in a consultancy Format agreement?
• The Advantages of Using a Consultant Agreement
• What Are the Things To Check for in a Contract?