A Transition Agreement is a contract between a company and a contractor to continue their services for a period of time after their original contract ends. This document helps ensure that all necessary roles, projects, and deadlines will not be interrupted during the transition.
When to use a Transition Agreement:
You're currently receiving services from a company that will no longer provide services but has agreed to continue until a replacement can be found.
You are providing services for a company after your contract ends and you do not plan to renew the contract.
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Sample Transition Agreement
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This TRANSITION AGREEMENT ('Agreement') is entered on and is made by and between:
, , , , (the "Client") and (the "Service Provider"), , , , .
The Service Provider has been providing the following services to Client as described below:
The Service Provider and Client are parties to a dated ('Original Agreement') pursuant to which the Service Provider provides the above described Services to the Client;
Due to , the Service Provider shall suspend providing services on hereinafter referred to as "Suspension Date".
The parties agree that the Client shall require the Service Provider to continue to provide to the Client certain services that the Provider has been providing to the Client, even after the Suspension Date, in order to support the transition of Client's business with minimal disruption.
NOW THEREFORE, in consideration of the conditions and covenants contained in this Agreement, the parties agree as follows:
Provision of Services
The Service Provider shall continue to provide to Client certain services and resources that the Service Provider has been providing to the Client under the Original Agreement. The services to be continued to be provided hereunder shall include:
The Service provider will continue to provide service to the Client for beginning on the and ending on the .
During the Extended Term, the Client will continue to make payment to the Service Provider as agreed under the terms of the Original Agreement.
, , ,
agrees to pay as follows:
Effect of Providing Services
The Client shall remain responsible for, and shall have the final authority to make, all decisions regarding the business and other operations of the Client. The parties shall consult with each other regarding any significant changes to the Services required to accommodate any changes made by the Client to their business or other operations.
Reciprocal Representations and Warranties
Each party represents and warrants that:
(a) it has full power and authority to enter into this Agreement and perform its obligations under this Agreement; and
(b) the execution and delivery of this Agreement shall not conflict with or result in the breach of any agreement or other legal obligation to which that party is subject.
During and after the term of this Agreement, a party and its employees, agents, or representatives that receives or gains access to the Confidential Information of the other party shall not divulge, communicate, or use to the detriment of the other or for the benefit of any other person or persons, or misuse in any way, any of confidential information of the other party.
Relationship of Parties
The relationship between the parties is that of independent contractors. This Agreement shall not be construed as creating an employee/employer, agency, partnership or joint venture relationship between the parties. The Service Provider is not representatives or agents of the Client for any purpose and has no authority to enter into agreements or other legal relations or obligations that are enforceable against the Client. The Service provider shall not take any action or make any communication indicating that the Service provider is the representative or agent of the Client.
This Agreement shall terminate on . The parties can terminate the Agreement by providing written notice to the other party.
The occurrence of any of the following shall constitute a material default under this Contract:
The failure to make a required payment when due.
The insolvency or bankruptcy of either party.
The subjection of any of either party's property to any levy, seizure, general assignment for the benefit of creditors, application or sale for or by any creditor or government agency.
The failure to make available or deliver the Services in the time and manner provided for in this Contract.
In addition to any and all other rights a party may have available according to law, if a party defaults by failing to substantially perform any provision, term or condition of this Contract (including without limitation the failure to make a monetary payment when due), the other party may terminate the Contract by providing written notice to the defaulting party. This notice shall describe with sufficient detail the nature of the default. The party receiving such notice shall have days from the effective date of such notice to cure the default(s). Unless waived by a party providing notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Contract.
If performance of this Contract or any obligation under this Contract is prevented, restricted, or interfered with by causes beyond either party's reasonable control ("Force Majeure"), and if the party unable to carry out its obligations gives the other party prompt written notice of such event, then the obligations of the party invoking this provision shall be suspended to the extent necessary by such event. The term Force Majeure shall include, without limitation, acts of God, plague, epidemic, pandemic, outbreaks of infectious disease or any other public health crisis, including quarantine or other employee restrictions, fire, explosion, vandalism, storm or other similar occurrence, orders or acts of military or civil authority, or by national emergencies, insurrections, riots, or wars, or strikes, lock-outs, or work stoppages. The excused party shall use reasonable efforts under the circumstances to avoid or remove such causes of non-performance and shall proceed to perform with reasonable dispatch whenever such causes are removed or ceased. An act or omission shall be deemed within the reasonable control of a party if committed, omitted, or caused by such party, or its employees, officers, agents, or affiliates.
Any controversies or disputes arising out of or relating to this Contract shall be resolved by binding arbitration in accordance with the then-current Commercial Arbitration Rules of the American Arbitration Association. The parties shall select a mutually acceptable arbitrator knowledgeable about issues relating to the subject matter of this Contract. In the event the parties are unable to agree to such a selection, each party will select an arbitrator and the two arbitrators in turn shall select a third arbitrator, all three of whom shall preside jointly over the matter. The arbitration shall take place at a location that is reasonably centrally located between the parties, or otherwise mutually agreed upon by the parties. All documents, materials, and information in the possession of each party that are in any way relevant to the dispute shall be made available to the other party for review and copying no later than 30 days after the notice of arbitration is served. The arbitrator(s) shall not have the authority to modify any provision of this Contract or to award punitive damages. The arbitrator(s) shall have the power to issue mandatory orders and restraint orders in connection with the arbitration. The decision rendered by the arbitrator(s) shall be final and binding on the parties, and judgment may be entered in conformity with the decision in any court having jurisdiction. The agreement to arbitration shall be specifically enforceable under the prevailing arbitration law. During the continuance of any arbitration proceeding, the parties shall continue to perform their respective obligations under this Contract.
This Contract contains the entire agreement of the parties, and there are no other promises or conditions in any other agreement whether oral or written concerning the subject matter of this Contract. This Contract supersedes any prior written or oral agreements between the parties.
If any provision of this Contract will be held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable. If a court finds that any provision of this Contract is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision will be deemed to be written, construed, and enforced as so limited.
This Contract may be modified or amended in writing, if the writing is signed by the party obligated under the amendment.
This Contract shall be construed in accordance with the laws of the State of .
Any notice or communication required or permitted under this Contract shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the address set forth in the opening paragraph or to such other address as one party may have furnished to the other in writing.
Waiver of Contractual Rights
The failure of either party to enforce any provision of this Contract shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Contract.
Neither party may assign or transfer this Contract without the prior written consent of the non-assigning party, which approval shall not be unreasonably withheld.
This Contract shall be signed by on behalf of and by on behalf of .
IN WITNESS WHEREOF, the parties hereto have executed this Transition Agreement effective as of the date first above written.
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