Common use of Annulment Clause in Contracts

Annulment. 1. Both parties may prematurely terminate the agreement at all times in writing with due observance of a reasonable term of minimal one (1) month. 2. If the client prematurely terminates the agreement, the contractor shall be entitled to compensation in view of the resulting occupancy loss which has to be made plausible, whereby the average monthly invoice amount to date is taken as the starting point. The compensation results in at least a minimum of three (3) months, unless the termination is based on facts and circumstances that may be attributed to the contractor. The preliminary results of the activities carried out up to that time, shall conditionally be made available to the client. 3. In the event that one of the parties becomes bankrupt, requests suspension of payment or ceases its activities, the other party shall have the right to prematurely terminate the agreement without any requirement to observe a term of notice. 4. In the event of premature termination by the contractor, the client shall be entitled to the cooperation of the contractor concerning the transfer of activities to be carried out to any third parties. When the transfer of the activities incurs additional costs to the contractor, the client shall be charged for any such costs.