The Dealer Termination Letter is a crucial document used in the Philippine business environment when a company needs to formally end its commercial relationship with an authorized dealer. This document must comply with Philippine commercial law and typically follows specific termination clauses outlined in the original dealer agreement. The letter serves multiple purposes: it provides official notice of termination, specifies the effective date, outlines transition requirements, addresses outstanding obligations, and establishes post-termination procedures. The document is particularly important in protecting both parties' interests and ensuring a clear record of the termination process. When drafting a Dealer Termination Letter, special attention must be paid to notice periods required under Philippine law and any specific requirements detailed in the original dealer agreement.
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1. Letter Date and Address Block: Full business name and address of the dealer, date of the letter
2. Reference Line: Reference to the relevant dealer agreement and any previous communications
3. Subject Line: Clear indication that this is a termination notice
4. Opening Paragraph: Formal opening and reference to the dealer agreement being terminated
5. Termination Notice: Clear statement of termination and the effective date
6. Legal Basis: Reference to specific clause(s) in the dealer agreement allowing for termination
7. Transition Requirements: Specific actions required during the notice period
8. Final Settlement: Information about final accounts settlement and pending transactions
9. Return of Materials: Instructions for returning company property, marketing materials, etc.
10. Closing Statement: Professional closing with contact information for next steps
1. Breach Details: Include when termination is due to breach of agreement, detailing specific violations
2. Cure Period: When applicable, details of any opportunity to remedy breaches
3. Confidentiality Reminder: Include when there are specific confidentiality obligations that survive termination
4. Customer Transition Plan: Include when there's a need to specify how existing customers will be handled
5. Legal Consequences: Include when there's a need to highlight specific legal implications or restrictions post-termination
6. Outstanding Obligations: Include when there are specific financial or operational obligations to be addressed
1. Statement of Outstanding Accounts: Detailed list of any pending financial settlements
2. Inventory List: List of company property or inventory to be returned
3. Customer Transfer Documentation: Forms or documents related to the transfer of customer accounts
4. Compliance Checklist: List of requirements to be completed before final termination
5. Previous Communications Log: Record of relevant previous communications regarding the termination
Relevant legal definitions
Clauses
Relevant Industries
Automotive
Electronics and Appliances
Construction Equipment
Agricultural Machinery
Industrial Equipment
Consumer Goods
Pharmaceuticals
Technology and Software
Telecommunications
Heavy Machinery
Food and Beverage Distribution
Real Estate
Relevant Teams
Legal
Sales
Operations
Compliance
Business Development
Channel Management
Distribution
Corporate Affairs
Risk Management
Contract Administration
Relevant Roles
Chief Executive Officer
Managing Director
Commercial Director
Sales Director
Business Development Manager
Channel Manager
Legal Counsel
Compliance Officer
Operations Manager
Contract Manager
Dealer Relations Manager
Distribution Manager
Regional Sales Manager
Corporate Secretary
Risk Manager
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