DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : A. Kondaiah Swamy

Designation : Lecturer
Branch : Commercial and Computer Practice
Year/Semester : IV semester
Subject : Business Correspondence
Subject Code : CCP-404(8/8)
Topic : Confirmation, Execution &
Cancellation of order.
Duration : 50 Mts
Sub Topic : Drafting a letter of Cancellation of
order
Teaching Aids : PPT, ANIMATIONS

CCP404.20 1
Objectives

On completion of this period, you would

able to
 Draft the letter of cancellation of order

CCP404.20 2
 RECAP

 After placing an order, the buyer may cancel the Order

due to various reasons.

 The letter is written cancelling the Order is called a letter

of cancellation of Order.

 This letter must mention the reasons for the cancellation.

CCP404.20 3
 Contd..

 This letter must reach the seller before execution

of Order.

 If this letter is sent after the execution of Order,

the buyer must accept the goods.

 So, the buyer must hurry up and take immediate

action so that the letter may reach the seller
before execution of order.

CCP404.20 4
CANCELLATION OF ORDERS -
CIRCUMSTANCES:

1. Non-arrival of goods on date of delivery

2. Change in prices
3. Goods received are different from ordered ones
4. Unforeseen incidents (death, natural calamity etc)
5. When customer is bankrupt

CCP404.20 5
 Contd..

6. When the terms and conditions are changed

7. If the goods are received in a damaged or inferior
condition
8. When there is undue delay for execution of order.

CCP404.20 6
Drafting a Letter of Cancellation of
Order
I. Introductory Para should begin with a
reference of order placed:
For example:-
 Please refer to our Letter No.34/2008, dated 30th
January, placing an order for the supply of (15)
Steel Almirahs. (OR)
 Please refer to our order placed with you on the 1st
of this month for the supply of (15) Steel Almirahs.

CCP404.20 7
II. In the Main Para, mention reasons for
cancelling Order:
For example

 We regret to inform you that our order now stands

cancelled as delivery date expired long ago. (or)
 Cancellation of order necessary because the delivery
schedule suggested is not acceptable to us. (or)

CCP404.20 8
 Contd..

 We are compelled to cancel the order because till

now we have not received the goods nor any reply
from you although the time of delivery has
expired.

CCP404.20 9
III. In the concluding para, apologise and
assure to maintaining cordiality

For example
 We again apologise for the inconvenience caused to
you and assure you of further orders from us. (Or)

 In order to compensate the loss sustained by you on

this account, we shall favour you shortly with an
order for other items required by us.

CCP404.20 10
Specimen Letter of cancellation of
Order
Telegrams:”RAG” Telephone:040-3476856
RAGHU FURNITURE COMPANY
14-12/2, Patel Nagar,
Hyderabad-14.
Lr.No.14/2008 Dated 2nd March, 2008.
To
M/s Spandana & Co.,
Gandhinagar,
Vijayawada.

CCP404.20 11
Dear Sirs, Contd..

Please refer to our letter dated 2nd January, 2008,

ordering for 15 medium sized steel almirahs. But till
now we have not heard from you

We are compelled to cancel the order as the

delivery period has expired long ago.

CCP404.20 12
 Contd..

Thanking you,
Yours faithfully,
for Raghu Furniture Company,

Marketing Manager.

CCP404.20 13
QUIZ
1. Cancellation of Order is made by
• Buyer
• Seller
• Creditor
• None

Ans: 1 - A

CCP404.20 14
QUIZ
2. Order may be cancelled due to
• The Non-arrival of goods
• The occurrence of a natural calamity
• The bankruptcy of customer
• All

Ans: 2 - D

CCP404.20 15
Frequently Asked Questions

1. M/s Teja Electronics,Gandhinagar,Vijayawada

cancel their order for 25 Onida Colour Television
sets to M/s Kavitha Electronics, R.P.Road,
Secunderabad as the order was not executed on
time. Draft a letter of cancellation.

3. You have sent an order to M/s Spandana traders,

Hyderabad. for supply of (15) Steel almirahs But you
have not received the goods by the scheduled date.
Draft a letter cancelling the order duly stating the
reason.
CCP404.20 16