Distribution Cancellation Letter Template for Australia

The Distribution Cancellation Letter is a crucial business document used when a company needs to formally terminate its distribution relationship with another party in Australia. This document is typically employed when a supplier wants to end a distribution arrangement due to various reasons such as performance issues, strategic changes, or market restructuring. The letter must carefully address all requirements under Australian law, particularly the Competition and Consumer Act 2010 (Cth) and relevant state legislation. It should clearly reference the original distribution agreement, specify the grounds for termination, outline the notice period, and detail the wind-down process. The Distribution Cancellation Letter needs to be precisely drafted to avoid potential disputes and ensure a smooth transition while protecting both parties' interests.

1. Letterhead and Date: Company letterhead, current date, and reference numbers if applicable

2. Recipient Details: Full name, title, company name, and address of the distributor

3. Reference Line: Clear reference to the Distribution Agreement being cancelled, including its date and any reference numbers

4. Formal Notice of Cancellation: Clear statement of intention to cancel/terminate the distribution agreement, citing the relevant clause from the original agreement that permits termination

5. Effective Date: Specific date when the cancellation takes effect, considering any notice periods required under the original agreement

6. Reason for Cancellation: Brief explanation of the grounds for cancellation, if required by the original agreement or if strategically appropriate

7. Immediate Actions Required: List of specific actions the distributor must take immediately upon receipt of the notice

8. Wind-down Procedures: Outline of the process for winding down the distribution relationship, including handling of inventory and outstanding orders

9. Final Accounting: Requirements for final accounting, payment of outstanding amounts, and reconciliation of accounts

10. Return of Materials: Instructions regarding the return of any proprietary materials, marketing materials, or company property

11. Closing: Professional closing statement, signature block with full contact details for follow-up questions