The Cancellation of Dealership Letter is a crucial business document used in the Philippine market when a company needs to formally terminate its relationship with an authorized dealer. This document is typically employed when either the principal company wishes to restructure its distribution network, the dealer has failed to meet performance requirements, or both parties mutually agree to end their business relationship. The letter must comply with Philippine commercial law and the terms specified in the original dealership agreement. It should clearly state the termination date, reasons (if applicable), transition requirements, and final settlement terms. The document plays a vital role in protecting both parties' interests and ensuring a clear record of the termination decision while maintaining professional business standards.
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1. Letter Header: Complete business letterhead, date, and recipient's full contact details
2. Reference Line: Clear reference to the original dealership agreement including its date and any reference numbers
3. Subject Line: Clear indication that this is a dealership cancellation notice
4. Opening Statement: Professional opening and reference to the authority to terminate under the original agreement
5. Termination Notice: Clear statement of the dealership termination and effective date
6. Reason for Termination: Brief, professional explanation of the termination reasons if applicable
7. Transition Requirements: Clear outline of immediate actions required from the dealer
8. Final Settlement Terms: Overview of final accounts settlement and pending obligations
9. Closing Statement: Professional closing with any necessary acknowledgment requirements
10. Signature Block: Full signature block with name, title, and company details
1. Appreciation Statement: Optional section expressing gratitude for past business relationship - used when the termination is amicable
2. Legal Reservations: Optional section reserving legal rights - used when there are concerns about potential disputes
3. Future Business Possibility: Optional section leaving door open for future business - used when maintaining good relations is important
4. Confidentiality Reminder: Optional section reminding of ongoing confidentiality obligations - used when sensitive information was shared
5. Customer Transition Plan: Optional section detailing customer handling - used when there's significant customer base transition needed
1. Outstanding Obligations List: Schedule detailing any pending financial or operational obligations
2. Inventory Return Form: Form for listing all company property, inventory, or materials to be returned
3. Final Settlement Calculation: Detailed breakdown of final payment calculations and adjustments
4. Transition Timeline: Detailed timeline for completing all termination requirements
Relevant legal definitions
Clauses
Relevant Industries
Automotive
Electronics and Technology
Consumer Goods
Industrial Equipment
Agricultural Machinery
Construction Equipment
Medical Devices
Telecommunications
Home Appliances
Pharmaceutical Distribution
Heavy Machinery
Software and IT Solutions
Relevant Teams
Legal
Sales
Operations
Business Development
Compliance
Distribution
Channel Management
Commercial Operations
Contract Administration
Relevant Roles
Chief Executive Officer
Managing Director
Sales Director
Business Development Manager
Legal Counsel
Compliance Officer
Operations Manager
Distribution Manager
Channel Manager
Contract Administrator
Regional Sales Manager
Dealer Relations Manager
Commercial Director
General Manager
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