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. 2. If the principal prematurely terminates the agreement, the supplier 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, unless the termination is based on facts and circumstances that may be attributed to the supplier. The preliminary results of the activities carried out up to that time, shall conditionally be made available to the principal. 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 supplier, the principal shall be entitled to the cooperation of the supplier concerning the transfer of activities to be carried out to any third parties. When the transfer of the activities incurs additional costs to the supplier, the principal shall be charged for any such costs.