Contract Rejection Letter Template for New Zealand

The Contract Rejection Letter is a crucial business document used when an organization needs to formally decline a proposed contract or business agreement. This document is particularly important in the New Zealand business environment, where it must align with local contract law and business practices, including the Contract and Commercial Law Act 2017 and Fair Trading Act 1986. The letter serves multiple purposes: it provides clear documentation of the rejection decision, maintains professional relationships, minimizes legal exposure, and creates a record of the communication. Used across various industries and organization types, the Contract Rejection Letter should be drafted carefully to balance clarity and diplomacy, while ensuring all necessary legal and business considerations are addressed. The document typically includes acknowledgment of the proposal, clear rejection statement, brief explanation, and professional closure, with optional elements added based on specific circumstances or business requirements.

1. Recipient Details: Full name, title, and address of the person/organization who submitted the contract proposal

2. Reference Information: Date, contract reference number, and any other relevant identifying information about the proposed contract

3. Acknowledgment: Polite acknowledgment of receiving the contract proposal and appreciation for the opportunity

4. Rejection Statement: Clear and unambiguous statement that the contract is being rejected

5. Brief Explanation: Concise, professional explanation of the primary reason(s) for rejection, without oversharing or providing ammunition for dispute

6. Professional Closure: Courteous closing statement that maintains professional relationships and leaves door open for future opportunities if appropriate