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Client Termination Letter Template for Hong Kong

A Client Termination Letter is a formal document used in Hong Kong to officially end a business relationship or service agreement with a client. This document, governed by Hong Kong law, particularly the Contract Ordinance (Cap. 26), serves as a written record of the termination decision and outlines the specific terms, conditions, and next steps in the termination process. It includes essential details such as the effective date of termination, reasons for termination if applicable, outstanding obligations, and transition arrangements, all while maintaining compliance with Hong Kong's legal requirements for business communications and contract termination.

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What is a Client Termination Letter?

The Client Termination Letter is a crucial business document used in Hong Kong when a service provider needs to formally end their professional relationship with a client. This document is essential in situations where there is a need to terminate ongoing services, whether due to contract completion, breach of terms, mutual agreement, or other circumstances. The letter must comply with Hong Kong's legal framework, particularly the Contract Ordinance (Cap. 26) and related business regulations. It typically includes key information such as termination date, reasoning, outstanding obligations, and transition arrangements. The Client Termination Letter serves as an official record of the termination and helps protect both parties' interests by clearly documenting the end of the business relationship and any subsequent obligations or requirements.

What sections should be included in a Client Termination Letter?

1. Letter Header: Company letterhead, date, and recipient's address details

2. Client Reference: Account number, contract reference, or other relevant identifiers

3. Subject Line: Clear indication that this is a termination notice

4. Opening Statement: Professional greeting and reference to the existing service agreement or relationship

5. Termination Declaration: Clear statement of termination and the effective date

6. Reason for Termination: Brief, professional explanation of the termination reason if appropriate

7. Outstanding Matters: Statement regarding any pending work, payments, or obligations

8. Next Steps: Clear outline of what happens next and any action required from the client

9. Contact Information: Details of who to contact for queries or further information

10. Closing: Professional closing statement, signature block, and company details

What sections are optional to include in a Client Termination Letter?

1. Transition Arrangements: Include when there needs to be a handover process or transition period

2. Refund Information: Include when there are pre-paid services or refunds to be processed

3. Legal References: Include when specific contract clauses or legal provisions need to be cited

4. Alternative Service Providers: Include when professionally appropriate to suggest alternative service providers

5. Confidentiality Reminder: Include when there are specific confidentiality obligations that continue post-termination

What schedules should be included in a Client Termination Letter?

1. Statement of Outstanding Fees: Detailed breakdown of any pending payments or refunds

2. Service History Summary: Summary of services provided and key dates

3. Return of Property Checklist: List of any physical or digital assets that need to be returned

4. Handover Documentation: Details of any work or documents to be transferred

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Cost

Free to use

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