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The Cancellation of Dealership Letter is a crucial document used when a company needs to formally terminate its relationship with an authorized dealer or distributor in Malta. This document is essential in various scenarios, such as business restructuring, performance issues, or strategic changes in distribution networks. It must comply with Malta's Commercial Code, Civil Code, and relevant EU regulations, particularly regarding notice periods and termination conditions. The letter typically includes specific details about the termination date, wind-down procedures, handling of remaining inventory, ongoing warranty obligations, and customer transition arrangements. As Malta operates under a mixed legal system with strong EU influence, the document must carefully balance local legal requirements with international business practices. The letter serves as official documentation of the termination and helps prevent potential disputes by clearly outlining all parties' rights and obligations during the termination process.

1. Letterhead and Date: Company letterhead with full business details and current date

2. Recipient Details: Full name, title, and address of the dealer/recipient

3. Reference Line: Reference to the original dealership agreement including its date and any reference numbers

4. Subject Line: Clear indication that this is a dealership termination notice

5. Opening Paragraph: Professional opening and reference to the authority to terminate

6. Termination Statement: Clear and unambiguous statement of termination with specific effective date

7. Legal Basis: Reference to relevant clause in original agreement or legal basis for termination

8. Notice Period: Confirmation of notice period being given and how it aligns with contractual obligations

9. Immediate Actions Required: List of immediate actions the dealer must take

10. Closing Statement: Professional closing with contact information for further communication