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Termination Of Agency Agreement Letter for United Arab Emirates

Termination Of Agency Agreement Letter Template for United Arab Emirates

A formal legal document used in the United Arab Emirates to terminate a commercial agency relationship between a principal and an agent. This document must comply with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, which provide significant protection to registered commercial agents. The letter serves as official notice of termination, outlining the effective date, reasons for termination if applicable, and subsequent obligations of both parties. Given the strict regulatory environment in the UAE regarding commercial agency relationships, this document requires careful drafting to ensure compliance with local laws and to manage potential legal and commercial implications.

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Termination Of Agency Agreement Letter

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What is a Termination Of Agency Agreement Letter?

The Termination Of Agency Agreement Letter is a crucial document used in the United Arab Emirates when a principal company wishes to end its commercial agency relationship with a local agent. This document must be drafted in accordance with UAE Federal Law No. 18 of 1981 (Commercial Agency Law) and its amendments, which provide substantial protection to registered commercial agents. The letter should be used when there is a legitimate need to terminate an agency relationship, whether due to breach of contract, mutual agreement, or other valid reasons recognized under UAE law. It must include specific details about the original agency agreement, clear termination notices, effective dates, and any transition arrangements. Given the significant legal and financial implications of terminating agency relationships in the UAE, including potential compensation claims by the agent, this document requires careful consideration and often involves legal consultation before issuance.

What sections should be included in a Termination Of Agency Agreement Letter?

1. Letter Header: Full legal names and addresses of both parties, date, and reference number

2. Subject Line: Clear indication that this is a Termination Notice for the specific Agency Agreement

3. Reference to Original Agreement: Details of the original Agency Agreement including date, parties, and registration number if registered with the UAE Ministry of Economy

4. Formal Notice of Termination: Clear statement of intention to terminate the agreement, citing relevant contractual and legal provisions

5. Effective Date: Specific date when the termination becomes effective, ensuring compliance with notice period requirements

6. Reason for Termination: Statement of the grounds for termination, if applicable and strategic to include

7. Immediate Actions Required: List of immediate steps required by both parties, including cessation of agency activities

8. Closing and Signature: Formal closing, signature block, and company stamp if applicable

What sections are optional to include in a Termination Of Agency Agreement Letter?

1. Outstanding Payments: Include when there are pending financial matters to be settled

2. Handover Process: Include when specific procedures for transferring responsibilities, documents, or inventory need to be outlined

3. Confidentiality Reminder: Include when emphasizing ongoing confidentiality obligations is necessary

4. Non-Compete Provisions: Include when reminding the agent of any surviving non-compete obligations

5. Dispute Resolution: Include when specific dispute resolution procedures need to be highlighted or agreed upon

6. Acknowledgment Request: Include when formal acknowledgment of receipt is required from the agent

What schedules should be included in a Termination Of Agency Agreement Letter?

1. Schedule A - Outstanding Matters: List of pending transactions, orders, or matters requiring attention

2. Schedule B - Financial Statement: Summary of outstanding financial obligations between parties

3. Schedule C - Inventory List: Detailed list of any inventory, marketing materials, or company property to be returned

4. Appendix 1 - Supporting Documents: Copies of relevant documents including original agency agreement and registration certificates

Authors

Alex Denne

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

Publisher

Ƶ

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Retail

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Relevant Teams

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Chief Executive Officer

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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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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