Contract Termination Letter Example

Need a contract termination letter example? Ending a business relationship with a vendor might not seem as clear-cut as ending one with a regular employee, especially if you don't work with vendors often. You may have decided to use another type of vendor for your goods and services, or you may wish to end an arrangement with an independent contractor whose contract is nearly expired. Just like any business letter, you need to follow the proper format and tone. A contract termination letter is a formal declaration of your intent to cease business relations with another company. The following termination letters deal with two different situations, one in which the vendor delivered on the contract and one in which the vendor did not:

Example 1

{standard business letter heading}
{greetings}

This letter is to confirm that as of {contract end date}, we will no longer be needing your {goods or services}. While we are grateful for our past relationship and wish to part on good terms, we are going with another company because {state reasons}.

Our contract agreement for the calendar year expires in {date of expiration}. Please consider this our notice to not renew that contract. This is well outside of the 30 days notice required by the contract. Please contact us with any further questions about this contract termination letter.

Example 2

{standard business letter headings}
{greetings},

This letter is to inform you that as of {date}, we will no longer be needing your services as {description of relationship}. Despite actions and services performed in good faith per the contract, there have been several contract violations. Specifically, {list the top three examples of contract violations}.

With a close look at the terms of the contract (section 3, clause 4), it is specified that {specific clause for contract termination}. Because of the impact your company's problems have caused for this company, we are making the decision to terminate the agreement. Please contact me with any questions on this. I can be reached at {contact information}.