Business to business: Cancellation of an order for goods or services
Sooner or later, someone is going to fail to deliver on an order. Your options are to wait, or to cancel.
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There are two basic forms of cancellation of a transaction: Under terms of sale, or under terms of contract. Your letter of cancellation needs to be directed to the conditions of sale.
This is a legal document.
It relates to law of contract or commercial law.
The fact is that the person has failed to supply you with the goods or services required under their contract obligations.
Please note: A period of time for meeting the terms of a sale or contract is usually given. After the expiry of that period, you can fairly claim that the supplier has failed to deliver.
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Depending on circumstances, you may wish to cease business relationships with the supplier. Optional text in this example relates to various situations.
Example
Addressee
Your reference
Our reference
Contacts
Dear
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Cancellation of order under terms of contract / sale
I refer to our intended purchase of / contract to purchase (insert description) of (insert date).
These goods / materials / services have not been delivered in accordance with the terms of contract /sale in the stipulated time frame.
Accordingly / in accordance with (quote clause) of the contract we hereby notify you that this order is cancelled / the contract is terminated.
No goods or charges for this order will be accepted.
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(Optional text here)
Yours sincerely
Signed
Title
Date
Optional text
In view of the poor performance of your firm regarding this purchase, we will no longer consider purchase of goods from your company. No further sales or promotional materials will be accepted.
Please be advised that no further communications from your firm will be acknowledged.
Disclaimer
Please note:
- This text is intended for advisory and guideline purposes only.
- Any business letter can become a legal document, so check your content properly before issuing.
- Any executable or statutorily defined document should be checked for compliance with legal requirements, and you should seek legal advice regarding its contents.
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Business Letters 
