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Contract Rejection Letter

Contract Rejection Letter Template for Malaysia

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Key Requirements PROMPT example:

Contract Rejection Letter

"I need to draft a Contract Rejection Letter for a proposed software development agreement received on March 15, 2025, while maintaining a positive relationship with the vendor for future opportunities and explaining that current budget constraints are the reason for rejection."

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Document background
The Contract Rejection Letter is an essential business document used in Malaysian business practice when an organization or individual needs to formally decline a proposed contract. This document is crucial in Malaysian business operations where clear communication of contract decisions is required under the Contracts Act 1950. The letter serves multiple purposes: it provides a clear record of the rejection decision, helps maintain professional relationships, and ensures legal compliance. A Contract Rejection Letter typically includes the date, reference to the original contract proposal, clear rejection statement, and optional explanations or alternative proposals. It's particularly important in Malaysian business context where written communication of contract decisions is valued for both legal and business relationship purposes.
Suggested Sections

1. Header and Date: Company letterhead, current date, and reference number if applicable

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

3. Subject Line: Clear reference to the contract being rejected, including any relevant contract numbers or dates

4. Opening Salutation: Professional greeting to the recipient

5. Contract Identification: Specific details about the contract being rejected, including date received and subject matter

6. Rejection Statement: Clear and unambiguous statement of rejection

7. Closing: Professional closing, signature block, and sender's contact information

Optional Sections

1. Reason for Rejection: Explanation of why the contract is being rejected - included when maintaining transparency or when required by prior agreements

2. Alternative Proposals: Suggested modifications or alternative arrangements - included when there's interest in continuing negotiations

3. Future Relations: Statement about maintaining business relationship - included when wanting to preserve future business opportunities

4. Return of Materials: Instructions regarding any physical documents or materials to be returned - included when physical documents were exchanged

5. Legal Disclaimers: Additional legal statements or reservations of rights - included when legal complexity requires additional clarification

Suggested Schedules

1. Copy of Original Contract: Attachment of the contract being rejected - included when formal documentation is required

2. Supporting Documentation: Any relevant correspondence or documents referenced in the rejection letter

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Legal Services

Financial Services

Manufacturing

Technology

Real Estate

Construction

Healthcare

Retail

Professional Services

Education

Telecommunications

Energy

Transportation

Agriculture

Mining

Relevant Teams

Legal

Procurement

Executive Leadership

Business Development

Operations

Finance

Compliance

Risk Management

Commercial Operations

Contract Administration

Relevant Roles

Chief Executive Officer

Managing Director

Legal Counsel

Contract Manager

Procurement Manager

Business Development Manager

Operations Director

Chief Financial Officer

Company Secretary

General Manager

Project Manager

Commercial Director

Risk Manager

Compliance Officer

Department Head

Industries
Contracts Act 1950: The primary legislation governing contract formation, validity, and termination in Malaysia. Sections 2(b) and 4 specifically deal with communication of proposals and their revocation, which is relevant for rejection letters.
Electronic Commerce Act 2006: Governs electronic communications in commercial transactions, including the legal recognition of electronic messages and the time/place of dispatch and receipt of electronic communications.
Communications and Multimedia Act 1998: Relevant when the rejection is communicated through electronic means, ensuring compliance with electronic communication standards and requirements.
Specific Relief Act 1950: Provides guidance on remedies available to parties in contractual matters, including situations where contracts are not formed or are rejected.
Personal Data Protection Act 2010: Important when handling and storing personal data included in the rejection letter, ensuring compliance with data protection principles.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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