The Distribution Cancellation Letter is a crucial document used when a company needs to formally terminate its distribution relationship in Indonesia. It serves as the official notification and legal record of the distribution agreement's termination, ensuring compliance with Indonesian commercial law and regulations. This document is typically employed when either the principal or distributor wishes to end their business relationship due to various reasons such as performance issues, strategic changes, or mutual agreement. The letter must be carefully drafted to address specific requirements under Indonesian law, including proper notice periods, handling of remaining inventory, and settlement of outstanding obligations. It should reference the original distribution agreement and clearly state the termination terms while maintaining professional courtesy in line with Indonesian business culture.
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1. Letter Header: Company letterhead, date, reference number, and formal addressing of the recipient
2. Agreement Reference: Clear identification of the distribution agreement being cancelled, including its date and parties
3. Cancellation Statement: Clear and unambiguous statement of intent to cancel the distribution agreement
4. Effective Date: Specification of when the cancellation takes effect
5. Legal Basis: Reference to the relevant clause in the original agreement or legal basis for cancellation
6. Acknowledgment Request: Request for acknowledgment of receipt and acceptance of the cancellation
7. Closing and Signature: Formal closing, name and position of authorized signatory
1. Reason for Cancellation: Explanation of the grounds for cancellation - include if required by original agreement or if beneficial for business relationship
2. Outstanding Obligations: Summary of any remaining obligations or payments - include if there are pending matters to be resolved
3. Inventory Handling: Instructions regarding remaining inventory or stock - include if there are physical goods involved
4. Transition Arrangements: Details of any transition period or handover process - include if a transition period is needed
5. Confidentiality Reminder: Reminder of ongoing confidentiality obligations - include if sensitive information was shared
6. Non-Compete Reminder: Reference to any post-termination non-compete obligations - include if applicable in original agreement
1. Schedule A - Outstanding Payments: Detailed list of any outstanding payments or financial obligations between parties
2. Schedule B - Inventory List: Detailed inventory of remaining stock and handling instructions
3. Schedule C - Transition Timeline: Specific dates and milestones for the transition period
4. Appendix 1 - Original Distribution Agreement: Copy of the original distribution agreement being cancelled
Relevant legal definitions
Clauses
Relevant Industries
Consumer Goods
Automotive
Electronics
Pharmaceuticals
Food and Beverage
Industrial Equipment
Retail
Technology
Chemical Products
Construction Materials
Agricultural Products
Telecommunications
Relevant Teams
Legal
Commercial
Sales
Business Development
Operations
Supply Chain
Compliance
Corporate Affairs
Distribution
Contract Management
Relevant Roles
Commercial Director
Sales Director
Chief Executive Officer
Managing Director
Legal Counsel
Business Development Manager
Distribution Manager
Contract Manager
Country Manager
Regional Sales Manager
Supply Chain Manager
Operations Director
Compliance Officer
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