Notice by Buyer - Cancellation for Breach

- The Notice by Buyer - Cancellation for Breach is a letter used by a buyer when the seller has breached an Agreement for the Sale of Goods.
- A buyer uses this notice when the goods have been delivered, but do not "conform" to the contract (that is, the goods were delivered but they are not what the contract specified) and when the seller has breached the contract in some other important way, such as failing to deliver the goods on the required date.
- If the seller delivers goods which do not conform to the contract, this is considered a breach of the contract.  However, it is ordinarily better to reject the goods (using a notice like the Business Attorney Notice of Rejection of Non-Conforming Goods), rather than using a notice like this one to cancel the contract for breach.  
- If the goods are rejected, the buyer may not have to pay for them, but if the goods are accepted and the contract is cancelled, the buyer usually has to pay for the goods and hope to recover the money in damages.  Rejection also makes the seller's case more difficult if the parties go to court.
- However, in order to reject the goods, the law requires a buyer to send the rejection notice within a "reasonable time" after delivery of the non-conforming goods.  
- If the buyer does not send the rejection notice within the time allowed, the buyer loses the option of rejecting the goods (the buyer cannot use the Notice of Rejection of Non-Conforming Goods).  However, the buyer is still entitled to damages, and can still use this Notice of Cancellation for Breach.

When You Need It
- To provide notice to a seller that you are canceling an agreement for the sale of goods.  
- The letter from the buyer puts the seller on notice that the buyer expects to be compensated for damages following the breach.

Getting Started

You will need:
- Name and address of the seller.
- Details of the contract which being cancelled, including a description of the products purchased. 
- Details of the facts supporting the cancellation.
- The amount of damages you are claiming and how calculated.

When to Review and Revise 
- To correct the information contained in the notice.
- To draft another cancellation notice.