The Agency Cancellation Letter is essential for businesses operating in England and Wales who need to formally end an agency relationship. This document should be used when a principal wishes to terminate the authority of an agent, whether for commercial, performance-related, or strategic reasons. The letter must comply with the Commercial Agents (Council Directive) Regulations 1993 and should clearly state the termination date, notice period, and any compensation or indemnity arrangements. It serves as crucial documentation for both parties and helps prevent future disputes regarding the termination of the agency relationship.
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1. Letter Header: Date, addressee details, and reference numbers
2. Agency Agreement Reference: Details of the original agency agreement being cancelled
3. Cancellation Statement: Clear statement of intention to cancel the agency agreement
4. Notice Period: Specification of notice period and effective termination date
5. Reason for Cancellation: If applicable, state the reason for termination
1. Compensation Details: Include when compensation or indemnity is applicable under regulations
2. Handover Requirements: Include when specific handover of materials or information is needed
3. Post-Termination Obligations: Include when there are ongoing obligations after termination
4. Confidentiality Reminder: Include when handling sensitive information
1. Original Agency Agreement: Copy of the agreement being terminated
2. Handover Schedule: List of items or information to be returned
3. Final Account Statement: Statement of any outstanding payments or commissions
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