Document background
The Cancellation Of Dealership Letter is a crucial business document used in South Africa when a manufacturer or principal company needs to formally terminate their relationship with a dealer or distributor. This document is typically utilized when there's a need to end a dealership arrangement due to various factors such as performance issues, strategic reorganization, or mutual agreement. The letter must comply with South African legal requirements, including notice periods specified in the original dealership agreement and relevant provisions of the Consumer Protection Act and Competition Act. It serves as official documentation of the termination decision and outlines critical aspects such as the effective date of termination, handling of remaining inventory, settlement of accounts, and post-termination obligations. The document is particularly important for maintaining clear records and ensuring a structured transition process while minimizing legal risks.
