A Dealer Termination Letter is utilized when a company needs to formally end its relationship with an authorized dealer or distributor. Under Singapore law, this document must carefully balance the rights and obligations of both parties while ensuring compliance with local regulations. The letter typically includes specific reference to the original dealer agreement, grounds for termination, notice periods, and transition arrangements. When drafting a Dealer Termination Letter, particular attention must be paid to Singapore's Contract Law, competition regulations, and fair trading requirements to ensure the termination process is legally sound and enforceable.
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1. Date and Address Block: Formal letter heading with date and recipient's details
2. Reference to Original Agreement: Citation of the original dealer agreement including date and parties
3. Termination Statement: Clear statement of termination and effective date
4. Notice Period: Specification of notice period being given
5. Reason for Termination: If applicable, statement of grounds for termination
1. Transition Arrangements: Details of handover process, use when complex transition needed
2. Outstanding Payments: Reference to any financial settlements, use if payments are pending
3. Post-Termination Obligations: Reminder of continuing obligations, use if significant ongoing duties exist
1. Statement of Account: Current financial position between parties
2. Transition Timeline: Schedule of key dates and deadlines for termination process
3. Return of Property Checklist: List of items to be returned including marketing materials and equipment
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