The Termination Of Service Letter Due To Non Payment is a crucial document used in Malaysian business operations when a service provider needs to formally end a service relationship due to payment defaults. This document becomes necessary when regular payment reminders and demands have been unsuccessful, and the service provider has decided to exercise their contractual right to terminate services. It must comply with Malaysian legal requirements, particularly the Contracts Act 1950 and relevant industry regulations. The letter serves multiple purposes: it formally documents the termination decision, provides evidence of the payment default, outlines the outstanding amounts, and establishes a clear termination date. It should reference the original service agreement, document the history of non-payment, and maintain a professional tone while firmly stating the service provider's position.
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1. Letter Header and Date: Company letterhead, current date, and reference number
2. Recipient Details: Full name and address of the recipient/client
3. Subject Line: Clear indication that this is a service termination notice due to non-payment
4. Service Agreement Reference: Details of the original service agreement including date and reference number
5. Non-Payment Statement: Clear statement of the payment default including amounts and due dates
6. Previous Communications: Reference to prior payment requests and warnings
7. Termination Declaration: Formal statement of service termination with effective date
8. Outstanding Balance: Statement of total amount due including any applicable late fees
9. Next Steps: Instructions for final payment and service discontinuation process
10. Signature Block: Authorized signatory details and company information
1. Resolution Option: Include when offering a final opportunity to resolve the payment issue before termination takes effect
2. Service Transition: Include when there's a need to outline the process for transitioning services to another provider
3. Legal Consequences: Include when there's a need to specify potential legal actions for continued non-payment
4. Asset Return: Include when there are company assets or materials that need to be returned
5. Confidentiality Reminder: Include when there are specific confidentiality obligations that continue post-termination
1. Payment History Schedule: Detailed record of unpaid invoices and payment attempts
2. Communication Log: Timeline of payment requests and related correspondence
3. Original Service Agreement: Copy of the relevant service agreement showing payment terms
4. Outstanding Invoices: Copies of all unpaid invoices
5. Delivery Confirmation: Proof of delivery for previous payment demands and notices
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