Sales Contract Cancellation Statement

Prepared by: [Your Name]

Issued By: [Your Company Name]

To: [Second Party]

1. Contract Details

Contract Date: [Month Day, Year]
Contract Number:
Customer Name:
Customer Company Name:
Contracted Product/Service:

2. Cancellation Terms

This statement outlines the terms and conditions for the cancellation of the sales contract between [Your Company Name] and [Second Party].

Cancellation Request: Either party may request the cancellation of this contract. The requesting party shall notify the other party in writing of their intent to cancel, specifying the reasons for cancellation.
Notice Period: The cancellation will be effective ten (10) days from the date of receipt of the cancellation request.
Cancellation Charges: If the customer initiates the cancellation, they may be liable for any costs or fees incurred by [Your Company Name] up to the effective cancellation date.
Refund: If the contract has been prepaid by the customer, a refund may be provided for any unused services or products after deducting any applicable cancellation charges.

3. Terms of Cancellation

The terms of cancellation, as agreed upon by both parties, ensure a mutual understanding and agreement regarding the cessation of obligations under the previously established sales contract. These terms are as follows:

Notice Requirement: Either party wishing to cancel the contract must provide written notice to the other party within [specify number] days prior to the intended cancellation date.
Financial Settlements: Any outstanding financial obligations up to the point of cancellation, including payments for delivered goods or services not yet compensated, must be settled within [specify number] days from the cancellation date.
Return of Goods: If applicable, any goods delivered but not yet paid for must be returned to the seller in their original condition, barring normal wear and tear, within [specify number] days following the cancellation notice.
Confidentiality Obligations: Both parties agree to maintain confidentiality regarding the terms of the original sales contract and the circumstances surrounding its cancellation.
Liability Release: Upon the effective date of cancellation, each party releases the other from all liabilities, claims, and demands related to the canceled sales contract, except for those expressly provided for in this cancellation statement.

4. Dispute Resolution

In the event of any disputes arising from this Sales Contract Cancellation Statement, the parties agree to resolve the matter through the following preferred methods:

Direct Negotiation: The parties shall first attempt to resolve any dispute through direct, good-faith negotiations.
Mediation: If direct negotiation fails to resolve the dispute within [specify number] days, the parties agree to engage in mediation, facilitated by a mutually agreed-upon professional mediator.
Arbitration: Should mediation not result in a resolution, the dispute will be resolved through binding arbitration, according to the rules of [specify arbitration body], with the location of arbitration being [specify location]. The decision rendered by the arbitrator shall be final and binding upon both parties.
Governing Law: This Sales Contract Cancellation Statement and any disputes arising from it shall be governed by and construed in accordance with the laws of [specify jurisdiction].
Litigation: Only if all the above steps fail, the parties retain the right to pursue legal action in the courts of [specify jurisdiction].

Both parties agree that the dispute resolution process will be conducted in a manner that seeks to preserve the business relationship and confidentiality of the matters involved.

5. Acceptance of Cancellation

By signing below, both parties acknowledge their agreement to the terms and conditions outlined in this Cancellation Statement, leading to the orderly termination of the sales contract.

This Sales Contract Cancellation Statement is signed by duly authorized representatives of the Seller and Buyer, acknowledging their agreement to the terms of cancellation and dispute resolution as set forth herein.

[Your Company Name] Representative:

[Your Signature]

[Your Name]

Date: [Month Day, Year]

[Customer's Company Name] Representative:

[Signature]

[Name]

Date: [Month Day, Year]