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Agency Termination Letter

Agency Termination Letter Template for Belgium

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Key Requirements PROMPT example:

Agency Termination Letter

"I need an Agency Termination Letter for our Belgian commercial agent who represents us in the pharmaceutical sector, with the termination to take effect on March 1, 2025, including provisions for a 3-month handover period and calculation of goodwill indemnity."

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Document background
An Agency Termination Letter is a crucial document used when a principal company wishes to end its commercial agency relationship in Belgium. The document must strictly comply with Belgian agency law, particularly the Law on Commercial Agency Agreements of 1995, which provides significant protection to commercial agents. This letter is used to formally communicate the termination decision, specify notice periods, address goodwill indemnity rights, handle commission calculations, and outline post-termination obligations. The content and timing of the Agency Termination Letter are critical as Belgian law imposes strict requirements on agency terminations, including mandatory notice periods and potential compensation rights. The document serves as a formal record of the termination and helps ensure compliance with all legal obligations while managing the practical aspects of ending the agency relationship.
Suggested Sections

1. Header and Date: Formal business letter header including sender's and recipient's full details and date

2. Reference Line: Reference to the specific agency agreement being terminated, including its date and any reference numbers

3. Notice of Termination: Clear statement of termination and the specific termination date in accordance with Belgian law notice requirements

4. Legal Basis: Reference to relevant termination clause in the agency agreement and/or applicable Belgian law provisions

5. Reason for Termination: Statement of the grounds for termination if applicable, particularly important if termination is for cause

6. Notice Period Details: Specification of the notice period and how it will be handled (served or paid in lieu)

7. Immediate Actions Required: List of immediate actions the agent must take (return of materials, handover of clients, etc.)

8. Final Accounting: Overview of final commission calculations and payment arrangements

9. Closing and Signature: Formal closing, signature block, and company details

Optional Sections

1. Non-Compete Obligations: Include when the original agreement contains post-termination non-compete provisions that will be enforced

2. Client Transfer Process: Include when there are specific requirements for transferring clients or ongoing business

3. Outstanding Disputes: Include when there are unresolved issues that need to be addressed as part of the termination

4. Goodwill Indemnity: Include when addressing the agent's right to goodwill compensation under Belgian law

5. Confidentiality Reminder: Include when there are specific confidentiality obligations that survive termination

6. Return of Property: Include when there are specific company properties, documents, or materials that need to be returned

Suggested Schedules

1. Commission Calculation Schedule: Detailed breakdown of final commission calculations and any outstanding amounts

2. Inventory of Company Property: List of all company property to be returned by the agent

3. Client List: Comprehensive list of clients affected by the termination

4. Goodwill Indemnity Calculation: Detailed calculation of any goodwill indemnity payable under Belgian law

5. Handover Timeline: Schedule of key dates and deadlines for the termination process

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions




















Clauses



















Relevant Industries

Manufacturing

Retail

Wholesale Distribution

Financial Services

Insurance

Technology

Pharmaceuticals

Industrial Equipment

Consumer Goods

Automotive

Chemical Industry

Construction Materials

Medical Devices

Software and IT

Relevant Teams

Legal

Commercial

Sales

Business Development

Compliance

Operations

Contract Management

Distribution

Corporate Secretariat

Executive Leadership

Relevant Roles

Commercial Director

Sales Manager

Legal Counsel

Business Development Manager

Contract Manager

Chief Commercial Officer

Distribution Manager

Agency Relationship Manager

Compliance Officer

General Counsel

Sales Director

Managing Director

CEO

Operations Director

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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