A Letter of Rejection of Proposal is a critical business communication tool used when an organization needs to formally decline a business proposal, tender, or offer. This document, governed by Hong Kong law, serves multiple purposes: it provides clear communication of the rejection decision, maintains professional relationships, and creates a formal record of the decision. The letter must be carefully crafted to balance professional courtesy with legal protection, ensuring compliance with Hong Kong's contract law principles and relevant ordinances. It's particularly important in formal procurement processes, competitive bidding situations, or when responding to unsolicited business proposals. The document typically includes proposal identification, rejection rationale, and appropriate closing statements, with optional sections for feedback or future opportunities when appropriate.

1. Letter Header: Company letterhead, date, reference number, and recipient's contact details

2. Proposal Reference: Clear identification of the proposal being rejected, including date received and any reference numbers

3. Acknowledgment: Polite acknowledgment of the proposal and appreciation for the time and effort invested

4. Rejection Statement: Clear and professional statement of rejection

5. Brief Explanation: Concise, diplomatic explanation for the rejection without providing unnecessary detail

6. Closing Statement: Professional closing that maintains good business relations and leaves door open for future opportunities where appropriate