Agency Termination Agreement

In addition, under the rules, the agent may be authorized to order transactions concluded after the deadline has closed in one of the following cases: a contract is considered indefinite if it does not provide for a fixed term or if both parties continue to fulfill the fixed-term contract at the end of its term. The directive sets minimum deadlines for termination of indeterminate contracts based on the termination date; That is, one month for the first year of contract, two months for the second year and three months for the third year and subsequent years. Parties should not agree on shorter notice periods. The current regulations restrict in principle the contractual freedom of the contracting parties in several respects, almost all of which are favourable to the representative. Even if the termination of the contract is not in dispute, the client may be required to make a substantial payment to the representative. This should be considered at an early stage. This payment is made in two forms: compensation or compensation; The first is the default option. The agent does not have this right if the client resigns immediately because of a serious breach of the agent`s contract. Compensation can be significant because it is not capped; compensation reflects lost commissions and is limited to an annual fee. During the period of agency and distribution relations, it is customary for the confidential information and documents of the client to be communicated to the agent or distributor for the management of the transaction. Accordingly, the termination contract should include provisions governing the use or removal of such information, documents and materials, and the data and documents held by the recipient should either be cancelled or returned to its owner.

The parties may agree to set the confidentiality period after closing, provided that this obligation of confidentiality is not limited by the existing competition rules. The Turkish Competition Authority`s guidelines on vertical agreements[1] stipulate that the use and disclosure of non-public know-how may be restricted indefinitely. Regulation 330/2010 of the European Commission[2] also contains a parallel provision to impose, over time, the use and disclosure of know-how that has not been made public.