Document background
The Dealer Termination Letter is a crucial document used when a company needs to formally end its commercial relationship with a dealer or distributor in the Netherlands. This document must be carefully drafted to ensure compliance with Dutch law, which provides significant protection for commercial agents and dealers. The letter typically includes the termination notice, effective date, grounds for termination (if applicable), and transition arrangements. When drafting a Dealer Termination Letter, special attention must be paid to statutory notice periods, potential goodwill compensation requirements, and post-contractual obligations under Dutch law. The document serves not only as a formal notice but also as a roadmap for managing the termination process while minimizing legal risks and maintaining professional relationships.
