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Cancellation Letter For Purchase Order Template for Singapore

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Key Requirements PROMPT example:

Cancellation Letter For Purchase Order

"I need a Cancellation Letter For Purchase Order to terminate a large equipment order from our Singapore supplier due to unexpected budget cuts, with the cancellation to take effect from March 15, 2025, and including provisions for the return of our 30% deposit."

Document background
A Cancellation Letter For Purchase Order is essential when a business needs to formally terminate a purchase order before completion. Under Singapore's legal framework, this document provides written confirmation of the cancellation, protecting both parties' interests by clearly stating the cancellation terms, effective date, and any financial settlements. It should reference the original purchase order details and provide clear reasoning for the cancellation. This document is particularly important for audit trails and maintaining clear business records in accordance with Singapore's commercial practices.
Suggested Sections

1. Reference Information: Original purchase order number, date, company details and related identifiers

2. Clear Statement of Cancellation: Explicit declaration of intent to cancel the purchase order with reference to relevant contractual rights

3. Reason for Cancellation: Brief explanation of why the purchase order is being cancelled, citing specific grounds

4. Effective Date: Specification of when the cancellation takes effect and any notice period details

5. Financial Settlement: Treatment of any payments made or pending, including refund arrangements if applicable

Optional Sections

1. Goods in Transit: Instructions for handling any goods already shipped or in production

2. Alternative Arrangements: Proposed alternative solutions or future arrangements for maintaining business relationship

3. Legal Consequences: Statement about legal implications of cancellation and rights reserved

Suggested Schedules

1. Original Purchase Order: Copy of the purchase order being cancelled with all relevant details

2. Payment Records: Documentation of any payments made or pending related to the purchase order

3. Shipping Documentation: Relevant shipping or delivery documentation if goods are in transit

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















Clauses




















Industries

Sale of Goods Act (SOGA): Primary legislation governing the sale and purchase of goods in Singapore, defining rights and obligations of buyers and sellers

Contract Law (Amendment) Act: Fundamental legislation governing contract formation, execution, and termination in Singapore

Electronic Transactions Act: Legislation governing electronic transactions and digital contracts, relevant for electronic purchase orders

Unfair Contract Terms Act (UCTA): Legislation controlling the use of unfair terms in contracts and limiting the extent to which liability can be excluded

Common Law Contract Principles: Legal principles established through case law covering contract formation, termination, reasonable notice, and breach

Consumer Protection (Fair Trading) Act: Legislation protecting consumer rights in B2C transactions, ensuring fair trading practices

Supply of Goods Act: Legislation governing the supply of goods and related transactions in Singapore

INCOTERMS: International commercial terms that define responsibilities of buyers and sellers in international transactions

Singapore Code of Commercial Practice: Guidelines and standards for commercial practices in Singapore

Competition Act: Legislation ensuring fair competition and preventing anti-competitive practices in commercial transactions

Notice Period Requirements: Legal requirements for providing adequate notice when cancelling purchase orders

Financial Liability Provisions: Legal framework governing financial responsibilities and liabilities in contract cancellation

Deposit Handling Rules: Legal requirements for managing deposits and advance payments in cancelled transactions

Goods in Transit Provisions: Legal framework for handling goods that are in transit when a purchase order is cancelled

Dispute Resolution Framework: Legal mechanisms and procedures for resolving disputes arising from purchase order cancellations

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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