Distribution Cancellation Letter Template for New Zealand

The Distribution Cancellation Letter is a crucial document used when a company needs to formally terminate its distribution relationship in New Zealand. This document is typically employed when a supplier/manufacturer decides to end their distribution arrangement due to various reasons such as performance issues, strategic changes, or market restructuring. The letter must comply with New Zealand's legal framework, particularly the Contract and Commercial Law Act 2017 and Fair Trading Act 1986. It should clearly state the termination date, reference the original agreement, outline post-termination obligations, and provide instructions for the transition period. The document is essential for maintaining clear communication and legal compliance while minimizing potential disputes during the termination process.

1. Recipient Details: Full legal name and address of the distributor

2. Reference Line: Reference to the original distribution agreement including date and contract reference number

3. Notice of Termination: Clear statement of intent to terminate the distribution agreement

4. Effective Date: Specific date when the termination becomes effective, considering notice period requirements

5. Legal Basis: Reference to relevant termination clause in the original agreement or legal basis for termination

6. Immediate Actions Required: List of immediate actions the distributor must take, such as ceasing to represent themselves as authorized distributor

7. Final Orders: Instructions regarding handling of final orders and existing inventory

8. Outstanding Payments: Statement regarding any outstanding payments or financial reconciliation required

9. Return of Materials: Instructions for returning any proprietary materials, marketing collateral, or company property

10. Closing Statement: Professional closing acknowledging the business relationship and providing contact information for next steps