What is the reasonable termination clause?
Employer may terminate Employees employment immediately and without prior notice upon the occurrence of any of the following events, each of which shall be deemed Reasonable Cause for termination: (i) Employee commits any act of gross negligence, fraud, dishonesty, or willful violation of any law or material
Should I agree to an indemnification clause?
Before agreeing to an indemnification, read it carefully and make sure your obligations are limited to your own mistakes or misconduct. In the sample indemnification above, the term to the extent arising out of effectively provides this limitation.
What is the purpose of the indemnity clause?
An indemnity clause is a contractual clause providing that one party is responsible for any losses or damages arising from a certain event or set of circumstances. In effect, the indemnity clause shifts the risk of that event occurring from the indemnified party to the indemnifying party.
What is the termination clause of a distribution agreement?
A distribution agreements termination clause is a legal term that specifies the circumstances in which one or both parties may terminate the contract. It is an essential feature of any distribution agreement because it offers a framework for handling problems that can come up as the parties relationship develops.
What is the indemnity clause in a distribution agreement?
This clause is often used when one party is at a greater risk of loss and wants to protect itself. For example, a manufacturer may include a one-sided indemnification clause in a contract with a distributor to protect itself from any losses resulting from the distributors actions.
What is the exclusivity clause in distribution agreement?
An exclusive distribution agreement is an agreement between a distributor company and a supplier company that grants the distributor exclusive rights to sell the suppliers goods. This means that the supplier agrees to now allow another distributor to sell its goods for the duration of the agreement.
What is the indemnity clause for distributors?
Distributor shall indemnify, hold harmless and defend Supplier, its successors and assigns for all losses, claims and defense costs claimed by any third party for any injury, death or property damage suffered by such third party to the extent resulting from Distributors negligence, willful misconduct or bdocHub of this
What is a typical termination clause?
Termination grounds: A termination clause outlines the conditions or grounds under which parties can terminate the contract. These grounds may include failure to meet performance expectations, contract bdocHub or nonperformance, mutual agreement, insolvency, and change in circumstances.
What is the termination clause in a supply contract?
A supplier is able to terminate a supply if: The office holder consents (in an administration, administrative receivership, liquidation and provisional liquidation). The company consents (in a CVA, statutory moratorium or a restructuring plan).
What are the key elements of a distribution agreement?
What are the key elements of a distribution agreement? There are a number of key issues that need to be included in a distribution agreement including exclusivity, term, the product(s), price, delivery, and the relevant territory.
