Document background
The Distribution Cancellation Letter is a crucial document used when a company needs to formally terminate its distribution relationship with another party in Canada. It serves as official documentation of the termination decision and outlines the specific terms and conditions under which the distribution agreement will end. This document is particularly important in Canadian business contexts where both federal and provincial laws may apply, including specific considerations for Quebec's Civil Code. The letter typically includes reference to the original agreement, termination date, reason for termination if applicable, and post-termination obligations such as inventory handling, outstanding payments, and confidentiality requirements. It should be drafted with careful attention to the notice periods and termination conditions specified in the original distribution agreement while ensuring compliance with relevant Canadian commercial laws.
