Document background
The Distribution Cancellation Letter is a crucial document used in the Netherlands when a company needs to formally end a distribution relationship. It's typically employed when either the supplier/manufacturer or distributor wishes to terminate their distribution agreement, whether due to strategic business changes, performance issues, or mutual agreement. The document must be drafted in compliance with Dutch civil law and EU regulations, particularly regarding notice periods and fair business practices. This letter serves multiple purposes: it formally communicates the intention to terminate, sets out the termination timeline, addresses practical matters such as inventory and outstanding orders, and establishes a framework for the transition period. The document's format and content are influenced by Dutch legal requirements for contract termination and the specific terms of the original distribution agreement.
