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Review of Legal Grounds for Termination of OEM Contract

Review of Legal Grounds for Termination of OEM Contract

Client Information
Corporate / Contracting Party
 
Case Details

Company A, which produces and supplies diet-friendly convenience foods, sought legal advice on terminating its OEM supply contract with Company B. The contract had been automatically renewing each year, and Company A wanted to confirm if they could terminate the extended contract year and if switching suppliers could lead to potential disputes.

Decent's Strategy
Although the contract terms and relevant legal provisions initially seemed to preclude termination, Decent Law Firm approached the matter from a fresh perspective. A thorough analysis of the contract revealed that termination was possible by leveraging provisions related to minimum order quantities and advance notice of termination.

Additionally, after reviewing the OEM contract, we found no exclusivity clause binding Company A to Company B. This meant that even without termination, Company A could switch suppliers and enter into agreements with other manufacturers without breaching its current obligations.
Outcome
"Provision of Review Opinion Letter"

Decent Law Firm provided a comprehensive legal opinion outlining Company A's rights to terminate the contract with Company B and the procedures to minimize potential disputes. We also prepared a detailed termination notice template, enabling Company A to confidently exercise its contractual and legal rights.
#SupplyAgreement # OEMContract # ContractDrafting # ContractReview # ContractTermination

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