Dealership cancellation letter

Dealership Cancellation Letters

Letters Kate

When a company signs a dealership contract with another company or individuals, it allows them to distribute and sell the manufacturer’s products. Manufacturers need to find dealers in different areas so that their products can be distributed and sold conveniently.

What is a dealership cancellation letter?

When the manufacturing company learns that the dealer is not working up to the mark or violating the rules set by the contract, it can terminate the dealership contract. This formal business letter is generally drafted to notify the recipient of the dealership’s cancellation. When the dealer learns about it, he can take the necessary steps to proceed with the next step.

Who should write the dealership termination letter?

The representative of the manufacturing company is assigned the task of writing the dealership agreement cancelation letter. In some cases, the owner of the company or the manufacturer himself writes this letter and conveys his message.

What is the objective of the letter written to do away with the contract?

The primary objective of this letter is to let the dealer know that he is no longer associated with the manufacturer writing this letter and has no authority to sell the products under the manufacturer’s name. In other words, this letter prevents the dealer from selling the manufacturer’s products when it has been noticed that the trader was not being honest.

What to include?

It is not easy to inform someone that they are no longer authorized to act as a dealer of a particular brand. However, the right choice of words and the correct type of content can get the job done efficiently. For this purpose, you should make sure that you don’t forget to add the following details to the letter:

Details of the dealership contract:

Since you are writing to terminate the contract, it is important to mention which agreement you are referring to. For this purpose, note the date you signed the deal with the trader and other pertinent details.

A decision to cancel the trade contract:

After providing the contract details, the producer should tell the trader that he has decided to terminate the dealership agreement with him.

Specification of the reason:

The sender must specify in the letter what made him make this decision. Every trader has the right to know why contact with him is being canceled, and this information should never be ignored.

Below is a sample letter that can be read for more in-depth insight into writing this letter.

Sample dealership cancellation letter:

Subject: Dealership cancellation for [X]

Respected (mention the name of the dealer),

This letter is regarding the dealership agreement that was signed between you and (mention the name of the company) on 14th February 20XX. We would like to inform you that the company has decided to terminate that agreement with you because you violated the terms and conditions of the agreement.

It has been brought to our knowledge that you have started selling our products at higher than agreed prices, which has brought shame to the name of our company. It was agreed in the contract that you would not sell the products at prices different from agreed-upon rates. We have written you many letters and emails and asked you to explain. However, we have failed to get any response from your side.

This is a transparent breach of contract, and as a result, the company has decided to terminate the dealership with you. We hereby request that you return all the items that have not been sold yet.

We have started to complete legal formalities, and you will be notified very soon. Please acknowledge this letter and let us know that you have read and understood it.

You can contact us with any questions regarding this matter (mention the phone number).

Sincerely,

Name of the sender

Sender’s designation in the company

Signatures of the sender

_________________

Dealership cancellation letter

File: Word (.docx) and iPad
Size 29 KB

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