Non Performance Termination Letter Template for Hong Kong

The Non-Performance Termination Letter is a crucial document used when one party needs to formally terminate a contract due to the other party's failure to meet their contractual obligations under Hong Kong law. This document is typically employed after previous attempts to resolve performance issues have been unsuccessful, or when immediate termination is warranted due to serious breaches. It must be carefully drafted to ensure compliance with Hong Kong legal requirements, including proper reference to the original contract, specific details of the breach, and clear termination terms. The letter serves multiple purposes: it formally documents the termination, provides legal notice to the non-performing party, and creates a record for potential future legal proceedings. It's essential to include specific instances of non-performance, reference relevant contract clauses, and clearly state the termination's effective date and consequences.

1. Recipient Details and Date: Full name, position, and address of the recipient, along with the current date

2. Contract Reference: Clear identification of the contract being terminated, including date and parties

3. Non-Performance Details: Specific description of the breach or non-performance issues, including dates and instances

4. Contract Clause Reference: Reference to specific contractual provisions that permit termination

5. Termination Statement: Clear and unequivocal statement of termination and effective date

6. Immediate Actions Required: List of required actions such as return of property, final payments, or cessation of services

7. Reservation of Rights: Statement preserving rights to seek remedies for the breach