The Letter Of Intent Termination document is essential in Canadian business transactions where parties need to formally conclude preliminary agreements or negotiations that were initiated through a Letter of Intent. This document becomes necessary when parties decide not to proceed with the contemplated transaction, when negotiations have reached an impasse, or when circumstances have changed making the original intent no longer viable. The Letter of Intent Termination should clearly reference the original LOI, state the termination date, address any surviving obligations, and handle confidentiality matters. It must comply with Canadian federal and provincial laws, including specific considerations for Quebec's Civil Code where applicable. This document is particularly important in maintaining clear business records and protecting both parties' interests during the discontinuation of preliminary agreements.
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1. Recipient Details: Full name, title, and address of the recipient party
2. Reference Line: Clear reference to the original LOI including its date and subject matter
3. Opening Statement: Formal introduction and reference to the authority to terminate
4. LOI Identification: Specific details of the LOI being terminated, including date of execution and parties involved
5. Termination Statement: Clear and unambiguous statement of termination, citing relevant termination provisions from the original LOI if applicable
6. Effective Date: Specific date when the termination takes effect
7. Return of Materials: Request for return or destruction of any confidential information or materials exchanged
8. Closing: Professional closing statement, signature block, and contact information
1. Reason for Termination: Include when it's beneficial to explain the rationale for termination, particularly in maintaining business relationships
2. Surviving Obligations: Reference to any obligations that survive termination (such as confidentiality provisions) - include when the original LOI contained such provisions
3. Mutual Release: Include when parties agree to release each other from future claims related to the LOI
4. Outstanding Payments: Include when there are any financial obligations or cost reimbursements to be addressed
5. Acknowledgment Request: Include when formal confirmation of receipt and acceptance is required from the other party
1. Copy of Original LOI: Attach the original Letter of Intent being terminated for reference
2. Schedule of Outstanding Items: List of any materials, documents, or information to be returned or destroyed
3. Confirmation of Compliance Form: Template for the other party to confirm compliance with termination requirements
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