Cancellation Agreement: Definition, Terms, Example
Jump to Section
What is a Cancellation Agreement?
A cancellation agreement is an agreement where the parties legally end their contractual relationship and the cancel the contract. The agreement specifies the parties, the cancellation reasons, and how and when the cancelation takes place. All parties in the original contract must sign the cancellation agreement. The agreement will include any obligations that survive the cancelation and may include an optional mutual release of claims.
The terms cancellation and termination are sometimes used interchangeably. However, a cancellation occurs when one party ends contract because the other party has breached it. A termination can also refer to the legal ending of a contract without it being considered a breach.
Common Sections in Cancellation Agreements
Below is a list of common sections included in Cancellation Agreements. These sections are linked to the below sample agreement for you to explore.
Cancellation Agreement Sample
SHARE CANCELLATION AGREEMENT
This SHARE CANCELLATION AGREEMENT (this “Agreement”), dated September 30, 2015 (the “Effective Date”), by and between Legacy Ventures International Inc. (the “Company”), a Nevada corporation, and REHAN SAEED, individually (the “Shareholder”). Company and Shareholder are also hereinafter individually and jointly referred to as “Party” and/or “Parties”.
RECITALS
WHEREAS, as of the date hereof, the Shareholder is the owner of 37,800,000 shares of the Company’s commons stock, par value $0.0001 per share (the “Common Stock”); and
WHEREAS, concurrently herewith, Company and the Shareholder are entering into certain Share Exchange Agreement (the “Share Exchange Agreement”) dated September 30, 2015 with RM Fresh Brands Inc., a corporation formed under the laws of the Province of Ontario, Canada (“RM Fresh”), pursuant to which Company and the Shareholder will cancel 35,800,000 shares of Common Stock (“Cancellation Shares”) in exchange for the consummation and execution of the Share Exchange Agreement; and
WHEREAS, it is a condition precedent to the consummation of the Share Exchange Agreement that the Shareholder will enter into this Agreement, which will effectuate the cancellation of the Cancellation Shares; and
WHEREAS, the Shareholder is entering into this Agreement to, amongst other things, induce RM Fresh to enter into the Share Exchange Agreement and the Shareholder acknowledges that RM Fresh would not consummate the transactions contemplated by the Share Exchange Agreement unless the transactions contemplated hereby are effectuated in accordance herewith.
AGREEMENT
In consideration of the mutual promises herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:
1.
Cancellation of Cancellation Shares. On the Effective Date, the Shareholder will deliver to Company the necessary documentation for the cancellation of the stock certificates representing the Cancellation Shares and hereby irrevocably instructs the Company and the Company’s transfer agent to cancel the Cancellation Shares such that the Cancellation Shares will no longer be outstanding on the stock ledger of the Company. The Company shall immediately deliver to the Company’s transfer agent irrevocable instructions providing for the cancellation of the Cancellation Shares.
1
2.
Effective Date. This Agreement shall become effective upon the execution of this Agreement. The transactions to occur at such place and time with respect to this Agreement are referred to herein as the “Closing”.
3.
Waiver. At and subsequent to the Closing, the Shareholder hereby waives any and all rights and interests he has, had or may have with respect to the Cancellation Shares.
4.
Representations by the Shareholder. (a) The Shareholder owns the Cancellation Shares of record and beneficially free and clear of all liens, claims, charges, security interests, and/or encumbrances of any kind whatsoever. The Shareholder has sole control over the Cancellation Shares and/or sole discretionary authority over any account in which they are held. Except for this Agreement, no person/entity has any option or right to purchase or otherwise acquire the Cancellation Shares, whether by contract of sale or otherwise, nor is there a “short position” as to the Cancellation Shares.
(b)
The Shareholder has full right, power and authority to execute, deliver and perform this Agreement and to carry out the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by the Shareholder and constitutes a valid, binding obligation of the Shareholder, enforceable against it in accordance with its terms (except as such enforceability may be limited by laws affecting creditor's rights generally).
(c)
The Shareholder represents and warrants that it has the requisite authority and capacity to enter into this Agreement, as well as carry out the terms/conditions referenced herein. Additionally, Shareholder represents and warrants that its compliance with the terms and conditions of this Agreement and will not violate any instrument relating to the conduct of its business, or any other agreement which it may be a party, or any Federal and State rules or regulations applicable to either Party.
6.
Further Assurances. Each Party to this Agreement will use its best efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement (including the execution and delivery of such other documents and agreements as may be necessary to effectuate the cancellation of the Cancellation Shares).
7.
Entire Agreement; Amendments. This Agreement contains the entire understanding of the Parties with respect to the matters covered herein and therein and, except as specifically set forth herein, neither the Company nor the Shareholder makes any representation, warranty, covenant or undertaking with respect to such matters. No amendment, modification, termination or waiver of any provision of this Agreement, and no consent to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by both Parties. Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.
8.
Survival of Agreements, Representations and Warranties, etc. All representations and warranties contained herein shall survive the execution and delivery of this Agreement.
9.
Successors and Assigns. This Agreement shall bind and inure to the benefit of and be enforceable by the Parties and their respective successors and assigns.
2
10.
Governing Law. This Agreement and the obligations, rights and remedies of the Parties hereto are to be construed in accordance with and governed by the laws of the State of New York, with any action/dispute concerning this Agreement to be commenced exclusively in the state and federal courts sitting in the City of New York.
11.
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.
12.
Miscellaneous. This Agreement embodies the entire agreement and understanding between the Parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. If any provision of this Agreement shall be held invalid or unenforceable for whatever reason, the remainder of this Agreement shall not be affected thereby and every remaining provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. This Agreement may be executed in any number of counterparts and by the Parties hereto on separate counterparts but all such counterparts shall together constitute but one and the same instrument.
3
IN WITNESS WHEREOF, the Parties hereto have executed this Share Cancellation Agreement as of the date first above written.
Legacy Ventures International Inc.
By:_______________________
Name:
Rehan Saeed
Title: President
By:_______________________
Rehan Saeed, Individually
4
Reference:
Security Exchange Commission - Edgar Database, EX-10.1 3 lgv_ex10z1.htm SHARE CANCELLATION AGREEMENT, Viewed October 21, 2021, View Source on SEC.
Who Helps With Cancellation Agreements?
Lawyers with backgrounds working on cancellation agreements work with clients to help. Do you need help with a cancellation agreement?
Post a project in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate cancellation agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Cancellation Agreement Lawyers
Richard P.
Have over 40+ years of corporate and commercial law experience.
Julian H.
I am a business attorney with years of experience advising individual entrepreneurs and small businesses on issues ranging from entity selection/formation to employment law compliance, to intellectual property protection and exploitation. I often act as General Counsel for my clients fulfilling the legal function as part of a team of managers. I look forward to learning more about your business and how I may be of assistance.
Christopher R.
Corporate and transactional attorney in sixth year of practice. Focus areas include general corporate counsel, labor and employment law, business partnership matters, securities matters related to privately-held companies, and regulatory compliance in securities and finance matters.
Forest H.
Forest is a general practice lawyer. He provides legal advice regarding small business law, contracts, estates and trusts, administrative law, corporate governance and compliance. Forest practiced complex commercial litigation in Florida for eight years, representing clients such as Host Marriott, Kellogg School of Business, and Toyota. Since moving to Nashville in 2005, he has provided legal advice to clients forming new businesses, planning for the future, and seeking funding through the use of equity and/or debt in their businesses. This advice has included the selection of business type, assistance in drafting and editing their business plans and offering material, reviewing proposed term sheets, and conducting due diligence. Forest is a member of the Florida, Tennessee, and Texas Bars; in addition. Forest has held a Series 7, General Securities Representative Exam, Series 24, General Securities Principal, and Series 63, Uniform Securities Agent State Law.
Anjali S.
CA, NY, and FL licensed attorney with nearly a decade of experience in intellectual property, data privacy, commercial contracts, and employment. I also have both the CIPP/US and CIPP/E privacy credentials. Basically, everything your business needs!
Christopher R.
Trusted business and intellectual property attorney for small to midsize businesses.
July 15, 2020
David C.
David H. Charlip, the principal of Charlip Law Group, LC, is one of only 101 Board Certified Civil Trial Lawyers in Miami-Dade, with over 40 years of litigation experience. Mr. Charlip is also one of only 136 Florida Civil Law Notaries. He is also a Florida Supreme Court Certified Circuit Civil Mediator and a Florida Supreme Court Approved Arbitrator. He has managed and litigated cases across the country. Mr. Charlip has advised businesses, drafted business formation and purchase and sale documents and litigated business disputes for over 40 years and is very familiar with all aspects of contractual relations.
Find the best lawyer for your project
Browse Lawyers NowCorporate
Cancellation Agreement
Alaska
is exit clause and termination clause same
nil
Jane C.
It truly depends on the context in which they are being used. Both clauses outline the terms under which you get out of the contract.
Business
Cancellation Agreement
New York
How can I cancel the signed building repair contract in new york?
I have signed a contract to do repair work of home and it is in the last phase. The contract includes the work to the done and the amount allocated and it does not contain any clauses or date of completion for each phase. Currently, the contractor is not coming for work and not responding to emails and phone calls. 90% of work is done for paid work. No money is paid for pending work. I want to hire a new contractor. Is sending a letter indicating the contract is terminated due to non progress and pending work for paid amount is enough ?
Jane C.
I suggest you send the contractor an email and mail a written letter to him stating that you will not be completing the job with him.
Business
Cancellation Agreement
Texas
Can an equipment finance contract be cancelled before the equipment has been delivered and any money exchanged?
I signed the agreement in Oct 2022 waiting for equipment to deliver in early April 2023.
Matthew S.
Yes, if the seller is in breach of the contract by delaying either because there was a deadline or the delays are unreasonable, you can cancel the contract.
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewHow It Works
Business lawyers by top cities
- Austin Business Lawyers
- Boston Business Lawyers
- Chicago Business Lawyers
- Dallas Business Lawyers
- Denver Business Lawyers
- Houston Business Lawyers
- Los Angeles Business Lawyers
- New York Business Lawyers
- Phoenix Business Lawyers
- San Diego Business Lawyers
- Tampa Business Lawyers
Cancellation Agreement lawyers by city
- Austin Cancellation Agreement Lawyers
- Boston Cancellation Agreement Lawyers
- Chicago Cancellation Agreement Lawyers
- Dallas Cancellation Agreement Lawyers
- Denver Cancellation Agreement Lawyers
- Houston Cancellation Agreement Lawyers
- Los Angeles Cancellation Agreement Lawyers
- New York Cancellation Agreement Lawyers
- Phoenix Cancellation Agreement Lawyers
- San Diego Cancellation Agreement Lawyers
- Tampa Cancellation Agreement Lawyers
Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.
View Trustpilot ReviewI never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.
View Trustpilot ReviewI got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.
View Trustpilot Review