The Cancel Letter of Intent is a crucial document used in Malaysian business transactions when parties need to formally withdraw from preliminary agreements or negotiations. It is typically employed when circumstances change during the negotiation phase, making it necessary to terminate the original Letter of Intent before proceeding to a final contract. The document must be carefully drafted to comply with Malaysian contract law, particularly the Contracts Act 1950, and should address key aspects such as the effective date of cancellation, handling of confidential information, and settlement of any incurred costs. This document is particularly important in protecting both parties' interests by providing clear documentation of the termination of pre-contractual obligations and helping prevent potential future disputes.
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1. Letter Header: Company letterhead, date, and recipient's complete address details
2. Reference Line: Clear reference to the original Letter of Intent including its date and subject matter
3. Subject Line: Clear indication that this is a Cancellation of Letter of Intent
4. Opening Paragraph: Professional greeting and reference to the authority to send this cancellation notice
5. Cancellation Statement: Clear and unambiguous statement of the cancellation of the Letter of Intent
6. Effective Date: Specification of when the cancellation 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 company details
1. Reason for Cancellation: Include when it's beneficial to explain the reasons for cancellation without creating potential legal issues
2. Cost Settlement: Include when there are any costs incurred that need to be addressed or settled between the parties
3. Survival Clauses: Include when certain provisions from the original LOI need to survive the cancellation
4. Mutual Release: Include when parties want to release each other from any claims related to the LOI
5. Future Cooperation: Include when parties wish to maintain good relations and possibly work together in the future
1. Original Letter of Intent: Copy of the original Letter of Intent being cancelled
2. Cost Statement: If applicable, detailed statement of any costs incurred and proposed settlement
3. Handover Schedule: If applicable, list of materials or information to be returned or destroyed
4. Confirmation of Authority: If required, documentation confirming the authority of the signatory to cancel the LOI
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