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Non Performance Termination Letter for Australia

Non Performance Termination Letter Template for Australia

A Non Performance Termination Letter is a formal legal document used in Australian jurisdictions to officially terminate a contract due to one party's failure to meet their contractual obligations. This document serves as an official notice of termination, detailing specific instances of non-performance, referencing relevant contract clauses, and stating the effective termination date. It must comply with Australian contract law requirements and include all necessary elements to ensure legal enforceability, such as clear identification of parties, specific breach details, and proper notice periods as required under Australian law.

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What is a Non Performance Termination Letter?

The Non Performance Termination Letter is a critical legal document used in Australian business contexts when one party needs to terminate a contract due to another party's failure to fulfill their contractual obligations. This document should be used when there has been a material breach or persistent non-performance of contract terms, and previous attempts to resolve the issue have been unsuccessful or when immediate termination is warranted under the contract terms. The letter must be carefully drafted to ensure compliance with Australian contract law and should include specific details of the breach, reference to relevant contract clauses, previous communications about the non-performance, and clear termination terms. It serves as both a formal notice and a legal record of the termination, potentially becoming crucial evidence in any subsequent legal proceedings.

What sections should be included in a Non Performance Termination Letter?

1. Recipient Details and Date: Full name, position, company name and address of the recipient, and date of the letter

2. Contract Reference: Clear identification of the relevant contract including date, parties, and contract reference number

3. Non-Performance Details: Specific description of the breach or non-performance issues, including dates and instances

4. Contract Clause Reference: Reference to specific contract clauses that have been breached and those giving right to terminate

5. Termination Statement: Clear and unambiguous statement of termination and its effective date

6. Immediate Actions Required: List of actions required from the recipient following termination

7. Closing and Signature: Formal closing, name and signature of authorized representative

What sections are optional to include in a Non Performance Termination Letter?

1. Cure Period Reference: Include if a cure period was provided and has expired

2. Previous Notifications: Reference to previous communications about the non-performance

3. Ongoing Obligations: Mention of any obligations that survive termination

4. Return of Property: Instructions for returning company property, if applicable

5. Confidentiality Reminder: Reminder of continuing confidentiality obligations

6. Without Prejudice: Include if the letter is part of ongoing negotiations or dispute resolution

What schedules should be included in a Non Performance Termination Letter?

1. Schedule A - Performance Breach Timeline: Chronological timeline of non-performance instances and communications

2. Schedule B - Supporting Evidence: Copies of relevant documentation proving non-performance

3. Schedule C - Previous Notices: Copies of previous formal notices or communications regarding the breach

4. Appendix 1 - Contract Excerpts: Relevant excerpts from the original contract showing breached terms

5. Appendix 2 - Property List: List of any property or materials to be returned, if applicable

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions





















Clauses




















Relevant Industries

Construction

Information Technology

Professional Services

Manufacturing

Retail

Healthcare

Financial Services

Real Estate

Transportation

Energy

Telecommunications

Education

Mining

Agriculture

Media and Entertainment

Relevant Teams

Legal

Contracts Administration

Procurement

Operations

Risk and Compliance

Executive Leadership

Commercial

Project Management

Business Development

Finance

Relevant Roles

Chief Executive Officer

Managing Director

Contract Manager

Legal Counsel

Commercial Director

Project Manager

Procurement Manager

Operations Manager

Business Development Manager

Risk Manager

Compliance Officer

General Manager

Company Secretary

Chief Financial Officer

Account Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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