Templates
Letter of Termination of Contract / Service / Agreement
A contract is when two parties formally agree on the same terms while working together on a project. Contract termination, on the other hand, means ending a contractual agreement, or bringing a contract to an end, due to a specific reason, which could be the completion of the period agreed on, or a mutual decision. A contract termination letter is written by one company to another, or an individual to an individual who are in a business partnership to end the contract.
In general, contract termination letters are meant to help business owners or individuals discontinue a breached contract or avoid an automatic renewal of a contract by communicating to a counterpart that the current agreement governing their business relationship will terminate at the expiration date of the current agreement or any other date agreed upon in their agreement.
Wondering how to write a contract termination letter? Take a look at some samples below to help you draft one:
Contract / Agreement Termination Letter (Sample #1)
[Your Company Name]
[Company Address]
[City, State]
[Current Date]
[Partner's Name],
[Company Name]
[Company Address]
Dear [Recipient's Name],
This letter is to inform you that despite our constant complaints about the sub-standard printing materials and equipment received from your company, there has been no action taken by your company to improve the quality of supplies. Therefore, we have decided to terminate our Business Contract dated [Contract Agreement Date].
The termination is applicable from [Contract Termination Date].
Please have your outstanding bills, if any, settled with us by [Any day before Contract Termination Date].
Thank you.
Regards,
[Your Name]
Contract / Agreement Termination Letter (Sample #2)
[Your Company Name]
[Company Address]
[City, State]
[Current Date]
[Other Party's Name]
[Other Party's Address]
Dear [Other Party],
I am writing to inform you that [Your Company Name] is
not renewing the [Agreement Name], dated [Agreement Date].
[Reason for non-renewal.]
Under
Section [Section Number], [Agreement Name] expires on [Expiration Date] but automatically renews unless cancelled at least [Required Time Period for Cancellation] before [Expiration Date]. This letter serves as timely notification that [Your Company] has decided not to renew [Agreement Name]. Accordingly, [Agreement Name] will terminate on [Expiration Date].
Please indicate your acknowledgement and receipt of this notice by signing and returning a photocopy of this notice. Please don’t hesitate to contact me if you have any questions or wish to discuss this matter. We have enjoyed working with [Other Party's Company Name] and hope to find a way to do so again in the future.
Regards,
[Your Name]
Service Termination Letter (Sample #3)
[Your Name]
[Your Address]
[City, State]
[Current Date]
[Recipient's Title],
[Partner's Company Name]
[Partner's Company Address]
Dear [sir/madam],
This is to inform you that I will no longer require the services of [Company Name], as of [
Termination Date]. With this notification, I comply with the minimum notice period required by our agreement. Your company has provided me with good service in the past, however, I decided to terminate our business contract due to [
Your Reasons].
From this moment, I will not place any more orders with your company. I won’t cancel any orders or deliveries arranged before this letter unless I explicitly inform you. Ideally, all outstanding orders should be completed before our contract is officially terminated. On my part, I will clear any outstanding amounts in my account by [
date]. To that end, I would like to receive all relevant invoices by [
date].
Please confirm the receipt of this letter as termination of our contract and the closing of my account. If you have any questions you can reach me on [
phone] or [
e-mail address].
I would like to thank you for our long-standing collaboration.
Best regards,
[Your Name]
Breach of Contract Termination Letter (Sample #4)
[Your Company Name]
[Your Company Address]
[City, State]
[Current Date]
[Recipient's Title],
[Partner's Company Name]
[Partner's Company Address]
Dear [sir/madam],
This letter serves as confirmation that [Company Name] is terminating the [Agreement Name], dated [Agreement Date] (the “Agreement”), pursuant to Section [section number] of the Agreement.
On [Date of Notification of Breach Letter] we notified [Partner's Company Name] that it had breached Section [section number] of the Agreement. According to the procedures set forth in Section [section number] of the Agreement, [Partner's Company Name] had [
Insert Contractually Agreed Time Period Permitted for Cure] from the date of [
Date of Notification of Breach Letter] to cure this breach. That period has now expired, but [Partner's Company Name] has not cured the breach. Accordingly, we are terminating the Agreement as of [Date].
Please let me know if you have any questions.
Best regards,
[Your Name]
