A Cancellation Letter For Purchase Order is a crucial business document used when a company needs to formally terminate a purchase order before its completion. This document is particularly important in New Zealand's business environment, where it must comply with the Contract and Commercial Law Act 2017 and related commercial legislation. It serves multiple purposes: providing formal notice of cancellation, documenting the reasons for cancellation, addressing any financial implications, and protecting both parties' legal interests. The letter should be used when circumstances necessitate the cancellation of a purchase order, such as changes in business requirements, supplier issues, or other valid commercial reasons. It typically includes key information such as purchase order details, cancellation date, reasoning, and any relevant terms or conditions, ensuring clear communication and proper documentation for both parties' records.

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

2. Date: The date when the cancellation letter is written

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

4. Purchase Order Reference: Clear identification of the purchase order being cancelled, including PO number and date

5. Cancellation Statement: Clear and unambiguous statement of intention to cancel the purchase order

6. Reason for Cancellation: Brief explanation of why the purchase order is being cancelled

7. Effective Date: The date when the cancellation takes effect

8. Closing: Professional closing statement, signature block, and contact information for follow-up questions