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(3/8)
Topic : Understand Confirmation, Execution
& Cancellation of order.
Duration : 50 Mts
Sub Topic : Points in a letter of
Cancellation of order .
Teaching Aids : PPT, ANIMATIONS

CCP404.15 1
Objectives
 On completion of this period, you would be able to

 Know the points to be written in a letter of

Cancellation of Order.

CCP404.15 2
 RECAP
 A letter is written canceling the order is called a
letter of cancellation of order.
 An order may be cancelled due to various
reasons such as
 delay in execution of order,
 variation in the prices etc.,

CCP404.15 3
 Contd..

 The letter canceling the order must mention the

reason for the cancellation.

 This letter should reach the seller before

execution of Order.

 If the cancellation letter is sent after execution of

order, the buyer will have to accept the goods.

CCP404.15 4
Points for writing a letter of cancellation

 This letter is written by a buyer to the seller.

 After having placed an order, if he is desired to
cancel the order, this letter is written.
 Order may be cancelled due various reasons.

CCP404.15 5
 Contd..

 Expression of regret for cancellation of order

should be given.

 Reasons for cancelling the order should be

clearly mentioned in this letter.

 Clearly indicate the order number and date

which is to be cancelled.

CCP404.15 6
The letter contains assurance to
compensate the loss caused by the
cancellation with future orders.
 The language of the cancellation letter should be
 Simple
 Balanced
 Humble and
 Dignified

CCP404.15 7
 Contd..

 This letter should reach the seller before the

execution of order.

 If this letter is sent after execution of order, the

buyer has to accept the goods.

 So, the information regarding the cancellation of

order should be sent immediately by telephone or
telegram.

CCP404.15 8
SUMMARY
 A letter is written for cancelling the order is called a letter
of cancellation.

 An order may be cancelled due to various reasons.

 This letter should reach the seller before execution of

order.

CCP404.15 9
 Contd..

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

buyer should accept the goods.

 Expression of regret for cancellation of order

should be given in this letter.

 Reasons for cancellation of order should be

furnished in this letter.

CCP404.15 10
 Contd..

 Clearly indicate the order number and date which

is to be cancelled.

 The letter contain the assurance to compensate

the loss caused by the cancellation through future
order.

 The language of the cancellation letter should be

simple, balanced, humble and dignified.

CCP404.15 11
QUIZ
1. A letter of cancellation is sent by
a) Buyer
b) Seller
c) Creditor
d) None

Ans: 1 - A

CCP404.15 12
QUIZ
2. The purpose of a letter of cancellation of order is
a) To make order
b) To execute the order
c) To cancel the order
d) All

Ans: 2 - C

CCP404.15 13
 QUIZ
3. A letter of cancellation of order is sent
a) After receiving the goods
b) Before receiving the goods
c) While transporting the goods
d) None

Ans: 3 - B

CCP404.15 14
Frequently Asked Questions
1. State any four points that should be kept in mind
while writing a letter of cancellation of the order?
2. List out any four contents of cancellation of order

CCP404.15 15