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Cancellation Letter Template for Pakistan

A formal legal document used in Pakistan to officially terminate an existing contract or agreement between parties. This document follows Pakistani contract law requirements, particularly under the Contract Act 1872, and serves as a written record of the intention to end a contractual relationship. It includes essential elements such as contract reference details, effective termination date, and any relevant terms of cancellation, while ensuring compliance with Pakistani legal requirements for contract termination notices. The document can be used across various business contexts and must incorporate appropriate notice periods and termination conditions as specified in the original agreement or as required by Pakistani law.

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What is a Cancellation Letter?

The Cancellation Letter is a crucial legal instrument in Pakistani business practice, used when one party wishes to formally terminate an existing contractual relationship. This document is essential in various situations, including service termination, employment cessation, lease termination, or discontinuation of business partnerships. It must comply with Pakistani legal requirements, particularly the Contract Act 1872 and related statutes, while clearly communicating the intent to cancel, specific contract details, effective date, and any relevant terms. The document should be drafted with careful attention to notice periods, conditions specified in the original agreement, and any statutory requirements under Pakistani law. A properly drafted Cancellation Letter helps prevent future disputes and provides clear documentation of the contract termination process.

What sections should be included in a Cancellation Letter?

1. Sender's Details: Full name, address, and contact information of the party sending the cancellation notice

2. Date: The formal date of the cancellation notice

3. Recipient's Details: Full name, address, and contact information of the party receiving the cancellation notice

4. Subject Line: Clear identification of the document as a cancellation notice with reference to the specific contract or agreement

5. Contract Reference: Specific details of the contract being cancelled, including original contract date and reference numbers

6. Cancellation Statement: Clear and unambiguous statement of intention to cancel the contract

7. Effective Date: Specific date when the cancellation takes effect

8. Closing: Formal closing, signature block, and sender's name

What sections are optional to include in a Cancellation Letter?

1. Reason for Cancellation: Include when explanation is required by contract terms or when it strengthens the legal position

2. Outstanding Obligations: Include when there are pending payments, services, or obligations to be addressed

3. Return of Property: Include when physical items or documents need to be returned

4. Confidentiality Reminder: Include when the original contract contained confidentiality provisions that survive termination

5. Legal Authority Reference: Include when cancellation is based on specific contract clauses or legal provisions

6. Dispute Resolution: Include when there are potential areas of disagreement or specific dispute resolution procedures

What schedules should be included in a Cancellation Letter?

1. Copy of Original Contract: Attached copy of the contract being cancelled for reference

2. Proof of Breach: If cancellation is due to breach, documentation supporting the breach claim

3. Payment Records: If relevant, statement of accounts or payment history

4. Delivery Confirmation: Proof of delivery or tracking information for the cancellation notice

Authors

Alex Denne

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

Jurisdiction

Pakistan

Publisher

Genie AI

Document Type

Termination Letter

Cost

Free to use

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