The letter talks about the service agreement termination decision which you have taken owing to delayed payments by your client. You tell him/her the reason for agreement termination, the date from which it is effective and lastly request him/her to clear up all his/her pending amount towards you. This is the professional way to realize them that their process of payment is affective your business. Through this letter you can convey the things in simple way.
Mr John Volta
Unique Courier Co
#14, 2nd cross, Banashankari
15th January, 2010
M/S First Insurance Pvt Ltd
# 23, 2nd main, Adugodi
Sub: Termination of Courier Service Agreement.
Ref: Our Service Agreement dated 20th October, 2009.
We are sorry to inform you that the above stated Service Agreement between us is decided to be truncated with effect from 31st January 2010. Continuous delay and irregular payment from your side is the reason for this.
We request you to clear your pending payments towards us by 25th February 2010.