The party attempting to terminate the agreement must notify the other party as much notice as possible. This advance announcement gives the other party sufficient time to make alternative arrangements. In the absence of a certain period set by the termination clause of the agreement, some states require up to 90 days` notice for the termination of a distribution contract. The agreement may also require one party to compensate the other party for the shortfall in the event of dismissal. Many distribution agreements contain a clause that allows either party to terminate the contract without any legal involvement. A termination clause often contains the reasons for termination, the required amount of advance notice and any financial compensation that a party would have to pay. The clause must set all termination dates and indicate whether the contract is automatically terminated in the event of a breach of certain contractual conditions. The relationship between a producer or seller of products and its distributor is essential. But it is rare that these relationships remain unchanged, even if they are successful. Parties may have different objectives or are unable to achieve goals over time.

The end of a distribution relationship does not have to be painful. Both parties can terminate a distribution agreement in a mutually beneficial manner and prepare the terms for a new relationship if circumstances change again. In accordance with the clause [indication of the number of clause containing the termination clause], please take this letter as [z.B 90] days or immediately] termination of the contract. [The agreement therefore expires on [date].] [This is not a violation on your part of the agreement, simply tha From that moment on, our company is not going to give up other orders to your company. We will not cancel any orders or delivery agreed upon prior to this letter, unless we expressly notify you. Ideally, all pending orders should be completed before our contract is officially terminated. We will delete our page all amounts of unpaid money in our account until [date]. To that end, we would like to receive all relevant invoices before [date]. we inform you that from [date], we no longer need the [company name] services. With this notification, we respect the minimum termination period required by our agreement. Your company has provided us with a good service in the past, but we have chosen to terminate our business contract for [reasons]. Business Letter Templates Fast and Simple: Instant download of more than 125 business letter templates — here.

This letter template is intended to assist in the drafting of the termination of a commercial contract with another company. It contains key elements to avoid misunderstanding and to end a partnership on consensual terms. A distribution contract is a contract for the distribution of products purchased by a manufacturer. The manufacturer is the supplier and the distributor serves as distributor and seller. A producer may have an exclusive agreement with an individual distributor or enter into several distribution agreements. Distribution agreements generally include trademark licensing conditions, exclusivity or non-exclusivity conditions, marketing conditions, descriptions of the geographic area covered and terms relating to the duration of the contract.