A Letter of Intent Termination is utilized when parties who previously entered into a Letter of Intent (LOI) decide to formally end their pre-contractual relationship. This document is particularly important in the Pakistani business and legal context, where it serves to clearly communicate the termination decision and manage potential legal implications. The termination letter typically includes reference to the original LOI, grounds for termination, effective date, and any continuing obligations. It must comply with Pakistani legal requirements, including the Contract Act 1872 and related commercial laws. This document is crucial for risk management and maintaining clear business relationships, especially in situations where preliminary agreements need to be formally concluded before reaching a final contract stage. The Letter of Intent Termination helps prevent potential disputes by clearly documenting the end of preliminary arrangements and any associated obligations.

1. Letterhead and Date: Company letterhead, current date, and reference number of original LOI

2. Recipient Details: Full name, title, company name, and address of the recipient

3. Subject Line: Clear indication that this is a termination notice for the specific Letter of Intent

4. Reference Information: Details of the original LOI including date, parties involved, and subject matter

5. Termination Statement: Clear and unambiguous statement of termination with specific effective date

6. Basis for Termination: Legal and factual grounds for termination, referencing relevant provisions from the original LOI

7. Next Steps: Clear outline of what actions are required from both parties

8. Closing: Professional closing statement, signature block with name and title of authorized signatory