Notice of Intention to Sell Goods After Breach

Creditor Letterhead

{{company_name}}

{{company_address}}

{{phone}}

{{email}}

{{website}}

Date and Reference

Date: {{date}}

Our Ref: {{our_reference_number}}

Your Ref: {{your_reference_number}}

Debtor Information

To: {{debtor_name}}

{{debtor_address}}

Subject: Notice of Intention to Sell Goods After Breach of Agreement

Dear {{debtor_name_or_contact_person}},

Background and Breach

This letter refers to the agreement entered into between {{creditor_company_name}} (hereinafter referred to as “the Creditor”) and {{debtor_company_name}} (hereinafter referred to as “the Debtor”) on or about {{agreement_date}}, pertaining to the provision of {{description_of_goods_or_services}} (hereinafter referred to as “the Agreement”).

In terms of the Agreement, the Debtor undertook to make payments totaling {{total_agreement_amount}} in accordance with the payment schedule outlined in the Agreement. As security for the Debtor’s obligations under the Agreement, the Debtor provided {{description_of_collateral_goods}} (hereinafter referred to as “the Goods”) to the Creditor.

Despite repeated reminders and demands for payment, the Debtor has failed to fulfill its payment obligations under the Agreement. Specifically, the Debtor is in arrears in the amount of {{outstanding_amount}} as of {{date_of_arrears_calculation}}. This constitutes a material breach of the Agreement.

Intention to Sell Goods

In light of the Debtor’s persistent breach of the Agreement, and in accordance with Clause {{relevant_agreement_clause_number}} of the Agreement, the Creditor hereby gives notice of its intention to sell the Goods, being {{description_of_collateral_goods}}, in order to recover the outstanding amounts due and payable by the Debtor.

Opportunity to Remedy Breach

The Debtor is hereby afforded a final opportunity to remedy the breach by making full payment of the outstanding amount of {{outstanding_amount}} within {{number_of_days}} ({{number_of_days_words}}) calendar days from the date of this letter. Payment must be made to the Creditor’s bank account as follows:

Bank Name: {{bank_name}}

Account Name: {{account_name}}

Account Number: {{account_number}}

Branch Code: {{branch_code}}

Failure by the Debtor to remedy the breach within the stipulated period will result in the Creditor proceeding with the sale of the Goods without further notice.

Method of Sale and Costs

The Goods will be sold by way of {{method_of_sale_e.g._public_auction_private_treaty}}.

All costs associated with the storage, valuation, marketing, and sale of the Goods, including legal costs incurred in recovering the outstanding debt, will be for the account of the Debtor and will be deducted from the proceeds of the sale. Any surplus generated from the sale, after deducting all outstanding amounts and costs, will be remitted to the Debtor. Should there be a shortfall, the Debtor will remain liable for the balance.

Contact Information

For any queries or to arrange payment, please contact:

Contact Person: {{creditor_contact_person_name}}

Phone: {{creditor_contact_phone}}

Email: {{creditor_contact_email}}

Reservation of Rights

All the Creditor’s rights in terms of the Agreement and at law remain strictly reserved, including the right to pursue further legal action for any outstanding amounts or damages suffered.

Signature Block

Yours faithfully,

___________________________

For: {{creditor_company_name}}

Name: {{authorised_signatory_name}}

Title: {{authorised_signatory_title}}