A Distributor Termination Letter is used when a company needs to formally end its distribution relationship under Singapore law. This document is essential when either party wishes to cease the distribution arrangement, whether due to breach of contract, strategic realignment, or mutual agreement. It should reference the original distribution agreement, clearly state the termination date, outline wind-down procedures, and address key matters such as inventory management, outstanding payments, and continuing obligations. The letter must comply with Singapore's legal requirements, including proper notice periods and fair dealing principles.
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1. Letter Date and Address: Formal letter heading with date and recipient's details including company name, address and reference number
2. Reference to Original Agreement: Details of the distribution agreement being terminated including date of original agreement and parties involved
3. Notice of Termination: Clear statement of termination, effective date, and notice period being given
4. Basis for Termination: Reason for termination and relevant clause references from the original agreement
5. Immediate Actions Required: Steps the distributor must take upon termination including cessation of distribution activities
1. Transition Period: Details of any handover period and transition arrangements for complex distribution relationships
2. Outstanding Payments: Details of settlement of accounts and final payment arrangements
3. Stock Returns: Instructions for handling remaining inventory and stock return procedures
4. Confidentiality Reminder: Restatement of confidentiality obligations and handling of sensitive information
5. Post-Termination Restrictions: Reminder of any non-compete or other restrictive covenants that survive termination
1. Financial Statement: Detailed summary of outstanding amounts and final settlements between parties
2. Inventory List: Comprehensive list of stock to be returned or purchased by either party
3. Handover Checklist: Detailed list of items and actions required for transition completion
4. Post-Termination Obligations: Summary of continuing obligations and restrictions after termination date
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