The Notice of Cancellation is a crucial document in Malaysian business and legal practice, used when one party wishes to formally terminate a contractual relationship. It must comply with Malaysian legal requirements, particularly the Contracts Act 1950 and related legislation. This document is essential in situations ranging from termination of service agreements to cancellation of purchase orders, and can be initiated by either party to the contract. The notice typically includes key information such as contract details, grounds for cancellation, effective date, and any post-termination obligations. Proper drafting and delivery of this notice is crucial as it can have significant legal and business implications for all parties involved.
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1. Notice Header: Date, recipient's details, and clear indication this is a Notice of Cancellation
2. Contract Reference: Details of the original contract being cancelled, including date, reference numbers, and parties involved
3. Statement of Cancellation: Clear and unambiguous statement of intention to cancel the contract
4. Grounds for Cancellation: Legal basis or reasons for the cancellation
5. Effective Date: Specific date when the cancellation takes effect
6. Return of Goods/Services: Instructions regarding any goods to be returned or services to be discontinued
7. Settlement Details: Information about any outstanding payments, refunds, or final settlements
8. Closing and Signature: Formal closing, signature block, and contact information for further correspondence
1. Breach Details: To be included when cancellation is due to breach of contract, detailing specific violations
2. Cooling-off Rights: For consumer contracts where cancellation is within cooling-off period under Consumer Protection Act 1999
3. Mutual Agreement Statement: When cancellation is by mutual consent of all parties
4. Force Majeure Reference: When cancellation is due to force majeure events
5. Preservation of Rights: Statement preserving certain rights or obligations that survive cancellation
6. Dispute Resolution: Include when there are disputed matters related to the cancellation
1. Original Contract: Copy or reference to the original contract being cancelled
2. Proof of Breach: If applicable, documentation evidencing contract breach
3. Payment Records: Schedule of payments made or pending, relevant for final settlement
4. Inventory List: For goods contracts, list of items to be returned or disposed of
5. Communication Record: Previous relevant correspondence regarding the cancellation
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