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Home/Templates/Offboarding & separations/Mutual termination agreement
Signable template

Mutual termination agreement

A consensual early end to an existing agreement covering the termination date, settlement of outstanding fees, handover of deliverables, and the clauses that survive. Use it when both parties agree to wind down cleanly.

  • Made forEmployers
  • Reading time~2 min
  • What's includedFillable fields, signature blocks, and e-signature delivery through Diiirect.
Use this templateSign in or create a free account to customize and send for e-signature.

The template

This mutual termination agreement (the "Agreement") records the parties' decision to end an existing agreement early, by consent, on the terms below. It settles what remains to be paid and delivered, and confirms which obligations continue after the end date.

1. The original agreement

The parties are Company name (the "Company") and Counterparty name or entity (the "Counterparty"). They are parties to Original agreement title, dated Original agreement date (the "Original Agreement").

2. Termination by consent

  1. The parties agree to terminate the Original Agreement effective Termination effective date (the "Termination Date").
  2. From the Termination Date, neither party has any further performance obligations under the Original Agreement, except as stated in this Agreement.

3. Settlement of outstanding fees

  1. In full settlement of all amounts owed under the Original Agreement, the Company will pay the Counterparty Settlement amount and currency, no later than Settlement payment date.
  2. The Counterparty will submit any final invoice needed for this payment promptly after signing. Once the settlement amount is paid, neither party owes the other any further fees, expenses, or charges under the Original Agreement.

4. Deliverables and handover

  1. On or before the Termination Date, the Counterparty will deliver the work product and materials listed here: Handover items summary.
  2. Each party will return or delete the other party's confidential materials in its possession, except copies required for legal or accounting records.

5. Surviving clauses

The provisions of the Original Agreement that by their nature survive termination — including confidentiality, intellectual property ownership and assignment, indemnities for pre-termination events, and dispute resolution — remain in effect according to their terms.

6. Mutual release of further performance

Except for the obligations in this Agreement and the surviving clauses in section 5, each party releases the other from all further obligations under the Original Agreement as of the Termination Date. This release does not cover fraud or obligations that cannot be released by law.

7. No admission and no fault

This is a consensual wind-down. Entering into this Agreement is not an admission of breach, wrongdoing, or liability by either party.

8. Entire agreement

This Agreement is the entire agreement between the parties about the early termination of the Original Agreement and can only be amended in a writing signed by both parties. If any provision is found unenforceable, the remainder stays in effect.

Signatures

Counterparty: ✍ Counterparty signature Date: Counterparty signature date

For the Company: Company representative name and title

Signature: ✍ Company signature Date: Company signature date

Highlighted fields are filled in when you customize and send this document on Diiirect.

Not legal advice

This template is provided for general informational purposes only and is not legal advice. Laws differ by jurisdiction and change over time — have a qualified professional review any document before you rely on it.

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