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Notice of Expiry FAQs.

13 Jan 14

What is a Notice of Expiry?

A notice of expiry is a new and optional document that can be used to extend a sales agency agreement.

Do I have to use a Notice of Expiry?

No.  It is an optional document.  You only have to use it if you want to extend the sales agency agreement.

Does it replace a subsequent sales agency agreement?

No.  You can still use a subsequent sales agency agreement if you want to. 

What do I have to do if I want to use a Notice of Expiry?

You must send the Notice of Expiry to your vendor no earlier than 14 days prior to the expiry of the sales agency agreement.  If you don’t send it in this time period, then you cannot use the Notice of Expiry to extend the sales agency agreement.

Can I email the Notice of Expiry to a vendor?

Yes.

What can the vendor do if they receive a Notice of Expiry?

The vendor can:

Agree to extend the sales agency agreement for a period not exceeding 90 days.  The vendor must sign the Agreement to Extend no earlier than 14 days prior to the expiration of the sales agency agreement.
Not agree to extend the sales agency agreement.  The vendor must give you notice that they do not agree to extend the sales agency agreement.
Do nothing.  The sales agency agreement will then roll over for a period not exceeding 180 days.

How many notices of expiry can be issued for a sales agency agreement?

One.  You can only have one extension per sales agency agreement.

Can I use a notice of expiry to extend a sales agency agreement entered into before 1 January 2014?

No.  A notice of expiry can only be used for agreements entered into on or after 1 January 2014.

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