The Distribution Cancellation Letter is a crucial document used when parties wish to formally terminate their distribution relationship in Singapore. It serves as official documentation of the termination decision and outlines the practical steps for unwinding the distribution arrangement. This document is particularly important in Singapore's highly regulated business environment, where clear documentation of commercial relationships is essential. The letter typically includes reference to the original agreement, termination grounds, notice periods, and detailed instructions for managing the transition period.
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1. Reference to Original Agreement: Details of the original distribution agreement being cancelled, including date, parties, and agreement reference number
2. Effective Date: Clear statement of when the cancellation takes effect and confirmation of notice period compliance
3. Reason for Cancellation: Brief explanation of the grounds for cancellation, if applicable and appropriate to include
4. Immediate Actions Required: List of immediate steps to be taken by both parties upon cancellation
5. Confirmation of Understanding: Statement acknowledging mutual understanding of the cancellation terms
1. Inventory Management: Instructions for handling remaining inventory and stock disposition
2. Outstanding Payments: Details of any pending financial obligations and settlement terms
3. Transitional Arrangements: Temporary measures to ensure smooth transition of business operations
4. Confidentiality Obligations: Reminder of ongoing confidentiality obligations post-cancellation
5. Return of Materials: Instructions for returning any proprietary materials or equipment
1. Schedule A - Inventory List: Detailed list of current stock levels and disposition instructions
2. Schedule B - Financial Statement: Statement of outstanding amounts and payment schedule
3. Schedule C - Handover Checklist: Comprehensive list of items and responsibilities to be transferred or concluded
4. Schedule D - Contact Information: Updated contact information for both parties for post-cancellation communication
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