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The Formal Cancellation Letter is an essential business document used in New Zealand when one party needs to formally terminate an existing contract or agreement. This document is particularly important as it provides written evidence of the termination notice and helps ensure compliance with New Zealand contract law, including the Contract and Commercial Law Act 2017. The letter should be used whenever a party wishes to end a contractual relationship in a formal, documented manner, whether it's terminating a service agreement, ending a lease, or cancelling a subscription. It typically includes crucial information such as identification of parties, specific contract details, termination date, grounds for cancellation, and any post-termination obligations. The document helps minimize potential disputes by clearly communicating the termination terms and maintaining a professional record of the contract's end.

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

2. Date: The formal date of the cancellation letter

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

4. Subject Line: Clear indication that this is a formal cancellation notice, including any relevant reference numbers

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 cancellation, including the effective date

7. Legal Basis: Reference to the relevant contract clause or legal right being exercised for the cancellation

8. Next Steps: Clear outline of what actions are required from both parties

9. Signature Block: Formal closure including name, title, and signature of the authorized person