A company writes a contract termination letter to their business partner or someone who provides service to them to inform them that their service contract is being terminated on the grounds of some reasons. The letter should indicate the reasons for termination of the contract, date of initiation and date of termination as well.
The letter must be written professionally yet having a polite tone. Keep the letter formal & concise avoiding too many details. The letter should not have use of a rude or harsh tone. It can be conveyed that you may be open for further business deals with improvement in their service
Table of Contents
Contract Termination Letter Example Writing Tips
- The letter must be written in a professional yet polite tone
- Any offensive or harsh words cannot be used in the letter.
- An apparent reason for termination of the contract should be stated
- Mention the completion date firmly
- The letter must end with proper Thanksgiving and best wishes for any future deals
Template
Use our free Contract Termination Letter Example to help you get started
From
__________
__________
__________
Date: __/__/__
To
__________
__________
__________
Subject: Termination of contract.
Dear _____ (Name of the person),
Our business agreement was initiated on ________ (Date of Agreement), and we are sorry to inform you that we are not happy with the services provided by you. Hence, our company has decided to discontinue our partnership. Although we had a good run for two years this, unfortunately, is the end of it. We terminating this contract because __________________________(Mention the reasons for termination).
As per the rules & regulations of the contract, we have decided the contract will be terminated on (Chosen date). You are requested to settle all the remaining deliveries on the deadline, and we’ll clear up all your dues.
On account of your inefficient supplies and processing we, unfortunately, have to discontinue this partnership. We wish you the best of your luck to find some other company for completing your deals.
Thanking you!
Yours faithfully,
Name and signature
Sample Letter
Date: _____
To
Ravinder Tripathi,
Kamla Mills,
Andheri (W), Mum-56
Subject: Termination of Business contract.
Dear Ravinder Tripathi,
We are writing this letter to you with utmost regret that we have decided to discontinue our business deal further. Firstly your deliveries lately have not been on time which has hampered our production rate and has resulted in massive losses. Also, the quality of the materials has been sub-standard.
We understand you may have your reasons for all this, but we can’t continue at this cost. We have found this act unacceptable & such unprofessionalism is not expected in business deals.
The date of the termination has been decided to be 23/5/2015, and within that, you are requested to settle all the dues between us. Clear up all the supplies, and we promise to pay you the required amount within the same.
Thanking you!
Yours sincerely,
Ajay Hussain
Email Format
Below is an email format of Cancellation of Contract (At Fault) Letter.
To: name@email.com
From: name@email.com
Sub: Termination of our Business Contract.
Dear Mr Kushal Bengali,
Ref: Our Business Contract dated 27th October 2003.
We are writing this letter to you with utmost regret that we have decided to discontinue our business deal further. Firstly your deliveries lately have not been on time which has hampered our production rate and has resulted in massive losses. Also, the quality of the materials has been sub-standard.
We understand you may have your reasons for all this, but we can’t continue at this cost. We have found this act unacceptable & such unprofessionalism is not expected in business deals.
On account of your inefficient supplies and processing we, unfortunately, have to discontinue this partnership. We wish you the best of your luck to find some other company for completing your deals.
Thanking you.
Yours truly,
Ashwin Hosmat