Draft a Termination Provision

Overview:

In this week's assignment, you will draft and explain a termination provision in a product distribution agreement. This will require you to think about the different reasons for which your client might wish to terminate the agreement. The reasons may relate to problems with the distributor's performancesuch as the failure to meet sales targetsor breaches of important provisions of the contract. Your client also may also want to have the right to terminate the agreement without liability for reasons unrelated to the distributor's performance. When drafting this provision, consider how the sample distribution agreements included in this week's online resources address similar issues. Also, don't overlook the requirement to write.a cover letter as described.

Instructions:

Dear Legal Professional:

Our client, Ellis-Elan Jewelry Design, LLC, is entering into a distribution agreement with a Latin American fashion distributor, Moda Hermosa. Moda Hermosa is planning to open pop-up stores in various Latin American locations over the next few years. Ellis-Elan Jewelry Design would like to introduce its jewelry into Latin America and grow that market. Our client believes Moda Hermosa has a good reputation and thinks it will do.a good job promoting the product in Latin America. Ellis-Elan has agreed to give Moda Hermosa a three-year exclusive distributorship in Latin America.

Ellis-Elan wants to get this deal done quickly, but I'm concerned, so I want to make sure we cover what happens if the deal goes wrong.

Please(1)draft a termination provision that you think will protect Ellis-Elan.

Please also(2)write.a cover letter that includes your observations about the transaction and whether you think we need any more information.

Thanks.

Provision