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Termination Of Agency Agreement Letter Template for United Arab Emirates

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Key Requirements PROMPT example:

Termination Of Agency Agreement Letter

"I need a Termination of Agency Agreement Letter for our UAE-based electronics distribution agent, with whom we've mutually agreed to end our relationship effective March 1, 2025, including provisions for a smooth 3-month handover period and inventory management."

Document background
The Termination Of Agency Agreement Letter is a crucial document used in the United Arab Emirates when a principal company wishes to end its commercial agency relationship with a local agent. This document must be drafted in accordance with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, which provide substantial protection to registered commercial agents. The letter should be used when there is a legitimate need to terminate an agency relationship, whether due to breach of contract, mutual agreement, or other valid reasons recognized under UAE law. It must include specific details about the original agency agreement, clear termination notices, effective dates, and any transition arrangements. Given the significant legal and financial implications of terminating agency relationships in the UAE, including potential compensation claims by the agent, this document requires careful consideration and often involves legal consultation before issuance.
Suggested Sections

1. Letter Header: Full legal names and addresses of both parties, date, and reference number

2. Subject Line: Clear indication that this is a Termination Notice for the specific Agency Agreement

3. Reference to Original Agreement: Details of the original Agency Agreement including date, parties, and registration number if registered with the UAE Ministry of Economy

4. Formal Notice of Termination: Clear statement of intention to terminate the agreement, citing relevant contractual and legal provisions

5. Effective Date: Specific date when the termination becomes effective, ensuring compliance with notice period requirements

6. Reason for Termination: Statement of the grounds for termination, if applicable and strategic to include

7. Immediate Actions Required: List of immediate steps required by both parties, including cessation of agency activities

8. Closing and Signature: Formal closing, signature block, and company stamp if applicable

Optional Sections

1. Outstanding Payments: Include when there are pending financial matters to be settled

2. Handover Process: Include when specific procedures for transferring responsibilities, documents, or inventory need to be outlined

3. Confidentiality Reminder: Include when emphasizing ongoing confidentiality obligations is necessary

4. Non-Compete Provisions: Include when reminding the agent of any surviving non-compete obligations

5. Dispute Resolution: Include when specific dispute resolution procedures need to be highlighted or agreed upon

6. Acknowledgment Request: Include when formal acknowledgment of receipt is required from the agent

Suggested Schedules

1. Schedule A - Outstanding Matters: List of pending transactions, orders, or matters requiring attention

2. Schedule B - Financial Statement: Summary of outstanding financial obligations between parties

3. Schedule C - Inventory List: Detailed list of any inventory, marketing materials, or company property to be returned

4. Appendix 1 - Supporting Documents: Copies of relevant documents including original agency agreement and registration certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses




















Relevant Industries

Retail

Manufacturing

Consumer Goods

Automotive

Electronics

Fashion and Luxury

Industrial Equipment

Pharmaceuticals

Construction Materials

Food and Beverage

Technology

Healthcare

Telecommunications

Relevant Teams

Legal

Commercial

Business Development

Executive Leadership

Compliance

Operations

Corporate Affairs

Sales

International Business

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Commercial Director

Business Development Manager

Contracts Manager

Country Manager

Regional Director

Compliance Officer

General Manager

Sales Director

Operations Director

Corporate Secretary

Legal Affairs Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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