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Your business relationships

End the relationship

Part ways cleanly: the right notice, your data and IP back, and clear agreements on what still applies afterwards.

05 — End the relationship

What clients ask us

Can we end this contract, and what does it cost us?

Check the termination clause first: fixed term, notice period, termination for convenience or for cause, and any fee. Without a right to end it, you may only terminate for a serious breach, and wrongful termination exposes you to damages. Indefinite contracts can generally be ended with reasonable notice, but exclusive distribution carries compensation rules. Send a written, correct notice and take advice first.

Can we end the contract straight away because the other side does not perform?

Only for a serious breach, or on a ground the contract itself lists. In most cases you first send a formal notice of default that gives the other side time to put things right. Under the new Civil Code you may then end the contract by written notice, at your own risk: if a court later finds the breach was not serious enough, you are the one in breach. Check the termination clause for grounds, cure periods and form.

How do we get our data, code or IP back at the end of a relationship?

The answer is mostly in the contract: return or deletion of data, handover of code or deliverables, assignment of IP, and transition help. Without such clauses you have only general law. For cloud services the EU Data Act gives customers switching rights. Agree an exit plan at signing, as it is hard to obtain after a dispute starts. Personal data must also be returned or deleted under the GDPR.

Can a former partner compete with us or hire our people?

Unless you agreed otherwise, in principle yes. A non-compete after the end must be limited in time, territory and activity, and in distribution the EU competition rules usually allow at most one year, in narrow cases only. A clause against poaching staff or customers is easier to defend. Confidentiality survives, and the law on trade secrets protects real secrets. For employees, employment law sets its own rules.

Do liability and indemnities still apply after the contract ends?

Often they do. Check the survival clause: liability, indemnities for claims by third parties, warranties on what was delivered, confidentiality and audit rights often run on for a set time. Claims for breaches during the contract survive its end, within the limitation periods. When you part ways by agreement, state explicitly which claims you waive and which you keep.

How do we end a relationship cleanly and protect confidential information?

Check which obligations survive termination: confidentiality, IP, non-compete, payment and data return. Agree a handover, final invoicing, return or deletion of confidential material and a short transition, ideally in a settlement or exit agreement. Revoke access to systems and update public references and trademark licences. Written confirmation of what has been returned protects you later.

What does a good exit plan look like?

A list of what moves, when and to whom: data, code, documents, licences, customer contacts and open orders. A transition period in which the other side keeps helping at agreed rates, with a named contact on each side. A final date, and written confirmation that copies have been deleted. Agree it at signing and update it when the relationship changes. After a sale or a carve-out, a transitional services agreement does the same job.

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