A business agreement cancellation letter is written by a business firm or body corporate to another firm in order to inform them about the cancellation of the business agreement between them. Business agreements are done to ensure a steady flow of business transactions among the business parties. However, sometimes due to some disagreements, the respective business firms might not want to continue the business relations with each other. That is when a business agreement cancellation letter is written.
A business agreement cancellation letter is a formal letter and has to be written with extreme professionalism. It should mention the reason behind the cancellation of the business agreement and also how they will settle the remaining things. Attach along with a letter the cancellation contract and ask them to sign it so that the legal formalities can be taken care of soon. Ensure that there are no grammatical mistakes in the letter. Still not sure about how to write this letter? Feel free to use our tips and samples provided below to help you go on.
Business Agreement Cancellation Letter Writing Tips
- Begin the letter by stating that you wish to cancel the business agreement with the receiver.
- Mention the reason behind this action.
- Mention the details regarding the compensation according to the agreement.
- Attach all the necessary documents along with the letter to make the process easy.
- Ensure correct grammar.
Business Agreement Cancellation Letter Template
Use our free Business Agreement Cancellation Letter to help you get started.
From,
_______
_______
_______
Date : _______ (Date on which letter is written)
To,
_______
_______
_______
Subject: Business Agreement Cancellation Letter.
Dear _________ (name of the person),
I am writing this letter to inform you that we are cancelling our business agreement for _________ (mention the purpose) signed on ________ (mention the date) having reference number ________. The reason for the same is the negligence shown on your part regarding the quality of the product. While signed this agreement, we had clearly stated that we won’t compromise on the quality of the product. Irrespective of our repeated complaints, you didn’t improve it. Also, in the last transaction, some of the items were missing. We need to supply these products to wholesalers and so this negligence can’t continue. Hence, we are canceling our business agreement.
Since the agreement is ending earlier than we had decided, we shall pay the compensation as stated in the agreement. I have attached all the documents that you will require for completing this process.
I expect the fullest cooperation from your side.
Yours sincerely,
__________
(your name)
Sample Letter
From,
Dudley Carter,
Business Relations Manager,
Collins Pvt. Ltd.
DD/MM/YYYY
To,
Emma Geller,
Production Manager,
ABC Pvt. Ltd.
Subject: Business Agreement Cancellation Letter.
Dear Emma,
I am writing this letter to inform you that we are canceling our business agreement signed on 1st Jan 2015 having reference number 45661. The reason for the same is the negligence shown on your part regarding the quality of the product. While signed this agreement, we had clearly stated that we won’t compromise on the quality of the product. Irrespective of our repeated complaints, you didn’t improve it. Also, in the last transaction, some of the items were missing. We need to supply these products to wholesalers and so this negligence can’t continue. Hence, we are canceling our business agreement.
Since the agreement is ending earlier than we had decided, we shall pay the compensation as stated in the agreement. I have attached all the documents that you will require for completing this process.
I expect the fullest cooperation from your side.
Yours sincerely,
Dudley Carter
Business Relations Manager
Collins Pvt. Ltd
Email Format
The following is the email format of Business Agreement Cancellation Letter.
To: name@email.com
From: name@email.com
Subject: Business Agreement Cancellation Letter.
Dear _________ (Name of the person),
I am writing this letter to inform you that we are cancelling our business agreement for _________ (mention the purpose) signed on ________ (mention the date) having reference number ________. The reason for the same is the negligence shown on your part regarding the quality of the product. While signed this agreement, we had clearly stated that we won’t compromise on the quality of the product. Irrespective of our repeated complaints, you didn’t improve it. Also, in the last transaction, some of the items were missing. We need to supply these products to wholesalers and so this negligence can’t continue. Hence, we are canceling our business agreement.
Since the agreement is ending earlier than we had decided, we shall pay the compensation as stated in the agreement. I have attached all the documents that you will require for completing this process.
I expect the fullest cooperation from your side.
Yours sincerely,
__________
(your name)