The Agreement Of Sale Cancellation is a crucial document used when parties to a sale agreement in Malaysia mutually agree to terminate their original contract. This document becomes necessary in various situations, such as when circumstances make the completion of the sale impossible or undesirable, when there are material changes in business conditions, or when both parties agree it's in their best interest to cancel the sale. The agreement must comply with Malaysian legal requirements, particularly the Contracts Act 1950 and Sale of Goods Act 1957, and typically includes provisions for unwinding the transaction, handling refunds, returning goods, and releasing parties from their obligations. It's essential for protecting both parties' interests and providing a clear legal framework for the cancellation process, while ensuring all regulatory and tax implications are properly addressed.

1. Parties: Identification of all parties to the cancellation agreement, including their full legal names, registration numbers (if companies), and addresses

2. Background: Details of the original sale agreement, including date, subject matter, and key terms, followed by the circumstances leading to cancellation

3. Definitions: Definitions of key terms used in the agreement, including references to the Original Agreement, Cancellation Date, and any specific terms relevant to the cancellation

4. Cancellation: Clear statement of the mutual agreement to cancel the original sale agreement and the effective date of cancellation

5. Return of Goods/Property: Provisions regarding the return of any goods or property delivered under the original agreement, including condition, timing, and logistics

6. Financial Settlement: Details of any refunds, payments, or financial adjustments between the parties, including payment terms and methods

7. Mutual Release: Mutual release of claims and obligations under the original agreement, subject to the terms of the cancellation

8. Confidentiality: Obligations regarding confidentiality of the original agreement and the cancellation terms

9. Governing Law: Confirmation that Malaysian law governs the cancellation agreement

10. Execution: Signature blocks and execution formalities