To,

Michael Gomes

Managing Director

ABC Limited

78, Avenue Street

London, UK

1st August, 2012

Sub: Cancellation of Distributor Contract Number AQ/000/9787876

Dear Mr. Michael,

This is to bring to your notice that we Gas Garments Limited, wish to cancel the Distributor Contract Number AQ/000/9787876 that we entered with your organization ABC Limited on 1st July, 2011. As per the contract, ABC Limited was supposed to sell the garments manufactured by Gas Garments Limited in the London region. The contract further stated that ABC Limited during the contract period of 2 years will not be allowed to sell the garments manufactured by any other company.

But recently our market researchers have found that your company is not adhering to the terms of the contract and also selling the garments manufactured by our competitors and thus we wish to cancel this contract. The contract stands cancelled with immediate effect and your company is kindly requested to send back all the stock of Gas Garments Limited to its office.

Since your company has not adhered to the terms and conditions mentioned in the contract, a penalty of $5000 will have to be paid by your company. Please find other details of the cancellation enclosed with this letter.

Let us know if you have any other doubts or query regarding the same.

Regards,

Paul Smith,

Gas Garments Limited.

 

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