The purpose of this Novation letter for Agency & Distribution Agreements is to enable a business (the “Vendor”) which is selling its business to another (the “Purchaser”) and has contracts with Agents or Distributors to transfer these contracts to the Purchaser.
All the rights and obligations of the Vendor under the contracts with the Agents or Distributors are transferred to the Purchaser and the Purchaser, by virtue of the Novation, replaces the Vendor as a party to the contract with the Agents or Distributors.
This letter should be signed by the Vendor, countersigned by the Purchaser and the Agent or Distributor.
This template has been recently updated, receiving formatting changes and minor changes to wording to allow for greater ease of use by a wider range of business types (ranging from individual sole traders to companies).
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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