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Contract Termination Letter

Contract Termination Letter Template for Malaysia

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Key Requirements PROMPT example:

Contract Termination Letter

"I need a Contract Termination Letter for our software maintenance agreement with TechServe Solutions Sdn Bhd, with the termination to take effect on March 31, 2025, as we're not renewing the contract upon its natural expiry."

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Document background
The Contract Termination Letter is an essential legal document used in Malaysian business practice to formally communicate the end of a contractual relationship. It is typically employed when one party wishes to end a contract either according to its terms, due to breach, or by mutual agreement. The document must align with Malaysian legal requirements, particularly the Contracts Act 1950 and any relevant industry-specific regulations. A properly drafted Contract Termination Letter should clearly state the termination grounds, effective date, and any consequential obligations of the parties. It serves as crucial evidence of proper contract termination and helps prevent future disputes by clearly documenting the termination process and terms.
Suggested Sections

1. Letter Header: Formal business letter header including date, sender's details, recipient's details, and reference number

2. Subject Line: Clear indication that this is a contract termination notice

3. Contract Reference: Details of the contract being terminated, including date of execution and parties involved

4. Termination Statement: Clear and unambiguous statement of termination, including the effective date

5. Legal Basis: Reference to the specific clause in the contract or law that permits the termination

6. Next Steps: Instructions regarding the termination process, including any immediate actions required

7. Closing: Formal closing, signature block, and company details

Optional Sections

1. Breach Details: Used when termination is due to breach of contract, detailing the specific breaches and their impacts

2. Cure Period: Include when offering a period to remedy breaches before termination takes effect

3. Payment Details: Required when there are outstanding payments or financial settlements to be addressed

4. Mutual Agreement Statement: Used in cases of termination by mutual consent

5. Confidentiality Reminder: Include when need to reinforce ongoing confidentiality obligations

6. Transition Arrangements: Used when specific handover or transition processes need to be detailed

Suggested Schedules

1. Proof of Breach: Documentation evidencing contract breaches (if applicable)

2. Statement of Outstanding Amounts: Detailed breakdown of any pending payments or financial obligations

3. Handover Checklist: List of items, documents, or access credentials to be returned or transferred

4. Contract Copy: Copy of the original contract being terminated, with relevant clauses highlighted

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions




















Clauses















Relevant Industries

Manufacturing

Technology

Construction

Financial Services

Retail

Professional Services

Healthcare

Education

Telecommunications

Real Estate

Logistics

Energy

Hospitality

Relevant Teams

Legal

Procurement

Commercial

Operations

Compliance

Risk Management

Contract Administration

Business Development

Corporate Secretariat

Executive Leadership

Relevant Roles

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Company Secretary

Chief Executive Officer

Chief Legal Officer

Commercial Director

Operations Manager

Project Manager

Risk Manager

Compliance Officer

General Manager

Managing Director

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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