---
title: "Check early-exit compensation clauses under s 43 of the Code"
url: "https://ailawframework.com/practice/franchising-and-distribution/check-early-exit-and-end-of-term-compensation-clauses/commonwealth"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-T1-R7-CTH"
practice_area: "Franchising & Distribution"
tier: "red"
lawyer_review: "required"
jurisdictions: ["CTH"]
last_reviewed: "2026-09-23"
---

# Check early-exit compensation clauses under s 43 of the Code

> Extract termination-for-convenience, non-renewal and compensation clauses from the agreement and line them up against s 43 of the Code.

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/check-early-exit-and-end-of-term-compensation-clauses/commonwealth  
Last reviewed: 2026-09-23

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Franchising & Distribution](https://ailawframework.com/practice/franchising-and-distribution.md) |
| Human involvement | Red: Lawyer writes; AI may check, clarify or collect data |
| How AI is used | Extract termination-for-convenience, non-renewal and compensation clauses from the agreement and line them up against s 43 of the Code. |
| What the lawyer must review | Confirm s 43 applies: agreement entered, transferred, renewed or extended from 1 November 2025 Check the event is a defined trigger: market exit, distribution change or restructure Check the compensation clause exists |
| Written for | Commonwealth |
| Applies to | [Check early-exit and end-of-term compensation clauses](https://ailawframework.com/practice/franchising-and-distribution/check-early-exit-and-end-of-term-compensation-clauses.md) |

## Checking plan

**Lawyer review required**

The responsible lawyer reviews the work against the instructions, sources and intended use.

- What the AI does: Potential support includes preparing preliminary structure or wording. Confirm the tool’s capability and permitted scope.
- What the lawyer does: Set the scope, verify the evidence, resolve exceptions and approve the final output for its intended use.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Suggested checking approach based on the task guidance. Complete the assessment for the actual tool, information and jurisdiction.
- Why: The plan reflects the described work and review requirements. Policy colours are not used to determine permission or checking.

## Checks the lawyer makes

1. Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
2. Review the original source set for relevant material absent from the output, including contrary evidence, qualifications and unresolved gaps.
3. Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
4. Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.

## Notes

- Confirm the required checking with the responsible lawyer before work starts. The checking approach does not establish permission to use AI.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*