The Agency Termination Letter Template is a critical document for companies operating in the United Arab Emirates who need to end their commercial agency relationships. It is specifically designed to comply with UAE Commercial Agency Law (Federal Law No. 18 of 1981) and related regulations, which provide significant protection to registered commercial agents. The template should be used when a principal company decides to terminate an agency agreement, whether due to performance issues, strategic changes, or other business reasons. This document must carefully address the strict requirements for termination under UAE law, including proper notice periods, grounds for termination, and potential compensation rights of the agent. The template includes essential provisions for handling the transition period, managing inventory and materials return, addressing outstanding financial obligations, and ensuring proper deregistration procedures with the UAE Ministry of Economy where applicable.
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1. Letter Header and Date: Formal business letter header including full legal names and addresses of both parties, date of the letter
2. Reference Line: Reference to the Agency Agreement being terminated, including its date and registration number if registered with the Ministry of Economy
3. Notice of Termination: Clear and unambiguous statement of intention to terminate the agency agreement
4. Legal Basis for Termination: Citation of relevant termination provisions from the agency agreement and/or applicable UAE laws
5. Effective Date: Specific date when the termination takes effect, ensuring compliance with notice period requirements
6. Immediate Actions Required: List of immediate actions required from the agent (e.g., cessation of agent activities, removal of signage)
7. Return of Materials: Request for return of all principal's property, materials, and confidential information
8. Closing: Formal closing, signature block, and company stamp
1. Outstanding Payments: Include when there are pending financial matters to be resolved
2. Transition Period Arrangements: Include when a handover period is necessary for business continuity
3. Compensation Matters: Include when addressing any compensation claims or settlements under UAE Agency Law
4. Non-Compete Reminder: Include when the original agreement contains post-termination non-compete obligations
5. Dispute Resolution Process: Include when specific dispute resolution procedures need to be outlined
6. Ongoing Warranty Obligations: Include when there are continuing warranty obligations for previously sold products
1. Copy of Agency Agreement: Attached copy of the original agency agreement being terminated
2. Commercial Agency Registration: Copy of the commercial agency registration certificate if registered with the Ministry of Economy
3. Inventory List: Schedule of any remaining inventory or company property to be returned
4. Outstanding Accounts Statement: Statement of any outstanding financial matters between the parties
5. Handover Checklist: Detailed list of items and responsibilities to be handed over during the transition period
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Automotive
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Construction Materials
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