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An Agency Cancellation Letter is a critical business document used when a principal wishes to formally terminate their relationship with an agent in the Philippines. This document is essential when ending commercial agency arrangements, distribution agreements, or similar representative relationships. It must comply with the Civil Code of the Philippines and any relevant commercial regulations, particularly regarding notice periods and termination procedures. The letter should be used when there is a need to document the formal end of an agency relationship, whether the termination is mutual, for cause, or simply due to business changes. The document typically includes references to the original agreement, termination date, transitional arrangements, and final obligations of both parties.

1. Letter Header: Full business letterhead including date, recipient's complete address and reference number

2. Agency Agreement Reference: Clear identification of the agency agreement being terminated, including its date and any reference numbers

3. Notice of Cancellation: Clear and unambiguous statement of the intention to terminate the agency relationship

4. Effective Date: Specification of when the cancellation takes effect, considering any notice periods required by the original agreement

5. Reason for Cancellation: Brief explanation of the grounds for termination, if applicable and appropriate

6. Transitional Arrangements: Instructions regarding the handling of ongoing matters and immediate next steps

7. Final Instructions: Specific actions required from the agent regarding return of materials, final accounts, or other closing matters

8. Closing and Signature: Professional closing, name and title of authorized signatory