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Termination of Consultancy Agreement Letter

Last Updated On September 11, 2018 By Letter Writing

Consultants are mainly used by small business people for an on-going project. When they finish the work or the project, they tend to terminate the contract with the consultancy if they are not satisfied or if they no longer need one. They may also terminate if the consultant does not perform well in the project. When you decide to terminate the services it is necessary to write a termination letter. When a company wants to terminate a consultant, they may be happy with his or her service but no may no longer need them. In that case, the company may state the reason for which they are terminating the services.

The contract should have a provision for termination so that the company can give a method to terminate the contract before completion of service. It indicates how the remuneration will be handled. When you are terminating a consultant, if he/she good, you can give them a positive testimony. In that case, a clear reason should be stated while terminating the contract, hence there will be no damage done to their career.  It is important to have everything in writing to avoid potential future troubles.

Tips to follow while writing a consultancy termination letter

  • The letter should be formal and polite.
  • State the reason why you are writing the letter.
  • Mention what the contract is and between whom it was made.
  • Explain the reason for terminating the contract.
  • Mention the exact date from when you are terminating the contract.
  • Give them suggestions if you have any to improve their services.

Template

Use our free Consultancy Termination Letter to help you get started.If you need additional help or more examples check out some of the sample letters below.

From,
__________
__________
__________
__________

Date: _____ (Date on Which Letter is Written)

To,
__________
__________
__________
__________

Subject: Termination Letter for Consultancy Services.

Dear _____(Sir or Madam),

This letter is to bring to your notice that the contract made between our company  __________ (mention company name) and your consultancy services __________ (mention the consultancy services name) that was made on __________ (mention the date when contract was made) will be terminated. The main reason for this action is ____________________ (mention the reason clearly).

For the above-stated reason, we have decided to terminate the contract with your consultancy. The termination date of the contract is __________ (mention the termination date). We won’t be paying any money further as we made a clear deal in the beginning that we will not pay money once the contract is terminated. It is better if you meet us in person to know more about this situation.  If you have any queries, you can reach me at this Phone Number __________ (mention your mobile number) or at this Email Address __________ (give your mail id). Please sign the enclosed copy of the termination letter and send it to me as soon as possible. Hope you will have a better future.

With Regards,

Name and Signature.

Consultancy Termination Letter Sample

The following is a Sample of Consultancy Termination Letter.

From,

Mahesh,

The Manager,

Cyient Company,

Hyderabad.

Date:10/5/2015

To,

Sowrya,

The CEO,

Sowrya Consultancy Services,

Moosapet,

Hyderabad.

Dear Sowrya,

This is to inform you that we are terminating the contract made on 1st February 2015 between Mr. Sanath, CEO of Cyient company and Sowrya, CEO of Sowrya consultancy services. The termination date of the agreement is 15/5/2015. As per the contract, your company had to provide training to our employees of using a particular software. The contract stated that you would send two trainers on Tuesday, Thursday, and Saturday from 9 am – 12 pm, to train our new employees at Visual Studio for .net course, and other coding languages. Even though the weekend should be a holiday, we asked our employees to come on Saturday as per your request. But according to our records, your trainers were absent for more than twice in last two months. Because of this, our employees are lacking in the courses they require to do their jobs. This has caused not only disappointment but we also faced a financial loss, this is because we failed in fulfilling our customer orders within time. Enclosed is a copy of our digital attendance record.

For this reason, we have decided to terminate the contract. Since payment was only based on attendance, there will be no further remuneration. It is better if we meet in person, so that you may have a brief knowledge about what happened. If you have any queries regarding this issue you can reach me at 9632587412 or you can mail me to this email address mahesh12@gmail.com. Feel free to contact as it is your right to know what has happened exactly. Please sign the enclosed copy of this termination letter and send it to us as soon as possible. Hope your company will have a bright future.

With Regards,

Mahesh.

Email Format

The following is the Email Format that should be followed while writing a Consultancy Termination Letter.

To: name@email.com

From: name@email.com

SUBJECT: University Acceptance Letter.

Dear Mr./Ms/Mrs.______(Name of the recipient)

This letter is a formal notice to inform you that the consulting agreement between our company ____________ (mention the company name) and your consulting firm ____________ (mention the Name of Firm) on ______ (mention the date) , will be terminated on ______ (mention the termination date). According to the guidelines that we stated in the agreement, if either of the party has the evidence that the other party did not fulfill the expectations of the contract, the first party has the right to terminate the contract before the completion of services.

According to the agreement, the consultancy agreed to provide good services but we have received your services on the basis of warnings and reminders. Due to this, we are lacking in our work. For this reason, we have decided to terminate the contract. It is better if we meet in person, so that you may have a brief knowledge about what happened. If you have any queries regarding this issue you can reach me at ______ (give your mobile number) or you can mail me to this email address ______ (provide your mail address). Feel free to contact as it is your right to know what has happened exactly. Please sign the enclosed copy of this termination letter and send it to us as soon as possible. Hope your company will have a bright future.

With Regards,

(Name of the Sender).

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