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The Letter of Cancellation is a crucial business document used in the Philippine legal context to formally terminate existing contractual relationships. This document type is essential when one party wishes to end a contract, service, or agreement before its natural conclusion or at the end of its term. The letter must comply with Philippine contract law, particularly the Civil Code of the Philippines and relevant commercial regulations. When drafting a Letter of Cancellation, it's important to include clear identification of the contract being terminated, effective date of cancellation, reason for termination, and any relevant settlement terms or outstanding obligations. The document serves as official evidence of the termination notice and helps protect both parties' interests by clearly documenting the cancellation terms and conditions.

1. Letter Header: Includes sender's details, date, and recipient's complete address

2. Subject Line: Clear indication that this is a cancellation notice with reference to the specific agreement or service being cancelled

3. Reference Details: Original agreement details including date, contract number, and any other relevant identifiers

4. Statement of Cancellation: Clear and unambiguous statement of intent to cancel the agreement or service

5. Effective Date: Specified date when the cancellation takes effect

6. Reason for Cancellation: Brief explanation of the grounds for cancellation

7. Closing Statement: Professional closing with signature block and contact information