The Termination Of Business Relationship Letter is a crucial document used when a company needs to formally end its commercial relationship with another business entity in Singapore. It serves as an official record of the termination decision and ensures compliance with Singapore's legal framework, including the Contract Act and Fair Trading Laws. This document should be used when a business decides to cease its relationship with suppliers, vendors, partners, or service providers. It typically includes termination date, notice period, reasons for termination (if appropriate), outstanding obligations, and transition arrangements. The letter must be carefully drafted to protect both parties' interests and maintain professional standards while ensuring legal compliance.
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1. Date and Address Block: Formal business letter format with current date and recipient's address
2. Reference Line: Reference to existing contract or business relationship
3. Subject Line: Clear indication of letter's purpose (Termination of Business Relationship)
4. Termination Statement: Clear statement of intent to terminate the relationship
5. Notice Period: Specification of notice period and effective termination date
6. Reason for Termination: Brief explanation of termination reasons (if appropriate)
7. Outstanding Obligations: Statement regarding pending payments, deliverables, or obligations
1. Transition Arrangements: Details of handover process, when complex transition is needed
2. Confidentiality Reminder: Reminder of ongoing confidentiality obligations, if applicable
3. IP Rights: Statement about intellectual property rights, if relevant
4. Future Cooperation: Professional courtesy paragraph about potential future business, if appropriate
1. Account Statement: Summary of outstanding financial matters
2. Transition Plan: Detailed plan for business transition, if complex relationship
3. Original Agreement Reference: Copy or reference to original business agreement being terminated
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