"Contract Termination Letter Template"

What Is a Contract Termination Letter?

A Contract Termination Letter is used to terminate an existing agreement or contract between two parties. It could be an employment contract or a business transaction.

Alternate Name:

  • Termination of Contract Letter.

A Business Contract Termination Letter is designed to assist in drafting a termination of business contract between two companies. This letter is important because it serves as an official record for both parties and can be used as a document of evidence in a court of law.

An Employment Contract Termination Letter is a communication method used by an employer to terminate an employee contract. It is a formal option provided to employees as notice of their dismissal from their current position in a company.

You can download our Contract Termination Letter template through the link below or create your own document with our online form-builder.

ADVERTISEMENT

How to Write a Termination of Contract Letter?

A Contract Termination Letter is a business letter and should be written only on company letterheads. It usually consists of the following sections:

  1. The names, the addresses, the fax numbers, email addresses and specific details of all the parties. It is important to point out the contract number in the reference line;
  2. The subject matter of the letter. A Contract termination letter must be written under the established terms of termination of the original contract and within the time limits set by the contract;
  3. The reasons for termination of a contract should be indicated. These reasons can be various such as fraud, breach of contract, misrepresentation, impossibility to fulfill terms of the contract, etc;
  4. The party that initiates the termination of the contract should take notice of all of the important dates, such as the date of the original contract, the dates of delivery, and the dates relating to the termination agreement;
  5. Monetary compensation or penalties for early termination of a contract, and also the mode of payment should be indicated in this part;
  6. Signatures of the parties.

The best way to end this letter is by indicating that you are willing to do business with the party in the future.


Related Forms and Templates:

ADVERTISEMENT

Download "Contract Termination Letter Template"

113 times
Rate
(4.6 / 5) 7 votes
Contract Termination Letter
From: ​ _ __________________________
Name
_________________________________
Business Name
_________________________________
_________________________________
Address
_________________________________
D ate
To: __​ _ __________________________
Name
_________________________________
Business Name
_________________________________
_________________________________
Address
Subject: ​ T ermination of Contract ________________________________________
Title and Date of Contract
Dear ______________________________,
The purpose of this letter is to notify you that we have decided to terminate the
above-mentioned Contract with you, effective _______________________________,
in accordance with the Terms and Conditions of that Contract.
You may contact us at the above address if you have any questions. We can also be
contacted by phone at ________________________, ________________________ or
________________________ and by email at ______________________________,
______________________________ or ______________________________.
Yours sincerely,
______________________________
PLEASE KEEP A COPY OF THIS LETTER FOR YOUR RECORDS
Contract Termination Letter
From: ​ _ __________________________
Name
_________________________________
Business Name
_________________________________
_________________________________
Address
_________________________________
D ate
To: __​ _ __________________________
Name
_________________________________
Business Name
_________________________________
_________________________________
Address
Subject: ​ T ermination of Contract ________________________________________
Title and Date of Contract
Dear ______________________________,
The purpose of this letter is to notify you that we have decided to terminate the
above-mentioned Contract with you, effective _______________________________,
in accordance with the Terms and Conditions of that Contract.
You may contact us at the above address if you have any questions. We can also be
contacted by phone at ________________________, ________________________ or
________________________ and by email at ______________________________,
______________________________ or ______________________________.
Yours sincerely,
______________________________
PLEASE KEEP A COPY OF THIS LETTER FOR YOUR RECORDS