Document background
The Termination Of Service Letter Due To Non Payment is a crucial document used in Malaysian business operations when a service provider needs to formally end a service relationship due to payment defaults. This document becomes necessary when regular payment reminders and demands have been unsuccessful, and the service provider has decided to exercise their contractual right to terminate services. It must comply with Malaysian legal requirements, particularly the Contracts Act 1950 and relevant industry regulations. The letter serves multiple purposes: it formally documents the termination decision, provides evidence of the payment default, outlines the outstanding amounts, and establishes a clear termination date. It should reference the original service agreement, document the history of non-payment, and maintain a professional tone while firmly stating the service provider's position.
