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Notice To Terminate Agency Agreement Template for United Arab Emirates

A formal notice document governed by UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, used to officially terminate a registered commercial agency agreement in the United Arab Emirates. This document must comply with strict UAE legal requirements regarding agency terminations, including proper notice periods and justification for termination. It serves as a formal communication between the principal and the registered agent, potentially requiring registration with or notification to the UAE Ministry of Economy, and must address specific legal and commercial considerations unique to the UAE agency law framework.

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What is a Notice To Terminate Agency Agreement?

A Notice To Terminate Agency Agreement is a critical document used in the United Arab Emirates when a principal company wishes to end its relationship with a registered commercial agent. The document must be drafted in accordance with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and subsequent amendments, which provide significant protection to registered agents. This notice should be used when either party wishes to terminate the agency relationship, whether for cause or upon expiry of the agreement term. The document must include specific details such as the original agreement's registration number with the Ministry of Economy, clear grounds for termination if applicable, and proper notice periods. Given the strict regulatory environment in the UAE regarding commercial agencies, this document often triggers important legal and commercial consequences and may lead to compensation claims or disputes before the Commercial Agencies Committee.

What sections should be included in a Notice To Terminate Agency Agreement?

1. Letterhead and Date: Company letterhead with full contact details and date of the notice

2. Addressee Details: Full name and address of the agent, including their commercial registration number

3. Reference Line: Clear reference to the Agency Agreement including its date and registration number with the Ministry of Economy

4. Subject Line: Clear indication that this is a Notice of Termination of Agency Agreement

5. Opening Statement: Formal opening and reference to the sender's authority to issue the notice

6. Notice of Termination: Clear and unambiguous statement of intention to terminate the agreement

7. Legal Basis: Reference to relevant termination provisions in the original agreement and applicable UAE laws

8. Effective Date: Clear statement of when the termination will take effect, considering any notice periods

9. Transition Requirements: Details of any handover requirements or final obligations

10. Closing: Formal closing statement, signature block, and company stamp

What sections are optional to include in a Notice To Terminate Agency Agreement?

1. Cause for Termination: Include when termination is for cause, detailing specific breaches or reasons as required by UAE law

2. Outstanding Payments: Include when there are any financial matters to be settled

3. Inventory Handling: Include when there are specific requirements regarding remaining stock or inventory

4. Non-Compete Reminder: Include when the original agreement contains post-termination restrictions

5. Legal Proceedings Notice: Include when legal proceedings are pending or anticipated

What schedules should be included in a Notice To Terminate Agency Agreement?

1. Copy of Original Agency Agreement: Attached copy of the registered agency agreement being terminated

2. Schedule of Outstanding Matters: List of any pending transactions, orders, or obligations that need to be addressed

3. Handover Checklist: Detailed list of items, documents, and materials to be returned or transferred

4. Commercial Registration Documents: Copies of relevant commercial registration certificates and agency registration documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

Genie AI

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use

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