An agreement enforced by the court of law is known as a Contract. A contract is when two parties formally agree on the same terms while working together on a project.
Contract termination, on the other hand, means ending a contractual agreement, or bringing a contract to an end, due to a specific reason, which could be the completion of the period agreed on, or a mutual decision.
A contract termination letter is written by one company to another, or to an individual with whom the former is in a business partnership. The letter is written to end the contract.
Sometimes when two parties are working together, they might not see eye-to-eye. They may be unable to work with each other, bringing the agreement to a standstill, leading to a situation where termination of the contract is the only viable option.
Other times, as already mentioned, it could simply be due to the completion of the specified contractual period. The date of termination and the exact details of the reasons for the termination must be mentioned in the letter.
Contract Termination Letter Example Writing Tips
- The letter must be written formally, with politeness and decency.
- Offensive or harsh words cannot be used in the letter.
- The letter must contain a clear description of the reason for the termination of the contract.
- The date of termination must be mentioned.
- The letter must be completed with thanks and good wishes for future endeavors.
Contract Termination Letter Example Template
Use our free Contract Termination Letter Example to help you get started. If you need additional help or more examples, check out some of the sample letters below.
From,
__________
__________
__________
Date: ________ (date of writing the letter)
To,
__________
__________
__________
Subject: Termination of Contract
Dear _____________ (name of the person receiving the letter),
As per our contractual agreement, signed on ____________ (date from which the contract started), h your job requirements were ______________ (details of job). You have not fulfilled these responsibilities satisfactorily and hence, your contract with this company is being brought to an end. The reasons for this decision are ___________________________(reasons for the termination).
The date of termination is ___________ (date of termination). You are requested to complete the project you are working on. You will be paid for your services with us by ________.
We wish you well in your future endeavors.
Thank you.
Warm regards,
Name and signature
From,
__________
__________
__________
Date: __________ (letter writer wrote the letter on this very day)
To,
___________
___________
___________
Subject: Letter of termination of the business agreement
Respected Sir,
It is on my part on behalf of our company to inform you that our contract ________________(name of contract) _______________(starting date) has been terminated. This thing happened due to the fraud from your company.
The products were not up to the mark.______________________(write about how it affected you) The decision was taken collectively by all the members of our board of directors.
The products are sent back to your company. The payments could not be sent; this is due to the ongoing inquiry. I hope this glitch will be totally exposed. As the inquiry completes the payments will be cleared. Thanking you.
Yours faithfully,
_______________
Name and Signature
Contract Termination Letter Sample
Below mentioned is the sample letter.
From,
Ashwin Host,
Scalium Ltd,
Worli,
Mumbai
Date: ________ (date of writing the letter)
To,
Mr. Kush Bangarpet,
Aptech Ltd,
Chembur,
Mumbai
Subject: Contract termination
Dear Mr. Kush Bangarpet,
This letter is to inform you that we have decided to terminate the business contract with your company. The reasons for this are the delay in the delivery of supplies by your company, which has had a negative impact on our business. Moreover, in the last three months, the materials provided by your company have not met our production standards. We do not wish to continue this relationship.
The date of the termination is ABC. All accounts will be paid for in this period, and you are requested to clear your dues in time. Thank you for your services, and we wish you the best in the future.
Thanking you,
Yours sincerely,
Ashwin Host
Name and signature
rom,
Ray Derek,
Drake industries ltd,
55th avenue,
New York
DD/MM/YYYY
To,
Mr. Vicky Kaushal,
Notin company,
New Jersey.
Respected Mr. Vicky,
This is a formal message to inform you that the contract between our company will be terminated on 28th September 2018. According to the terms and conditions on the contract is any party cannot deliver the results the other party has the right to terminate the contract.
As mentioned in the contract, your company was supposed to deliver the products on or before 13th September. But even after a week, we didn’t receive our product. We are very much disappointed. This delay caused us a huge financial loss, and we are on the verge of losing our clients.
This is the reason we want to terminate our agreement. For payment or any other details or query contact us at 99089790 or email us on name@email.com. Below is the copy of termination, please sign it and send it to the address mentioned above.
Yours sincerely,
Ray Derek.
Contract Termination Letter Email Format
Below mentioned is the email format of the letter.
Dear Mr. Kush Bangarpet,
Ref: Business Contract dated 25th October 2009
This letter is to inform you that despite our constant complaints about the sub-standard surgical equipment received from your company, there has been no action taken by your company to improve the quality of supplies. Therefore, we have decided to terminate our Business Contract mentioned in “Ref.”
The termination is applicable from 31st May 2010.
Please have your outstanding bills, if any, settled with us by 19th May 2010.
Thank you.
Regards,
Ashwin Host
Sub: Termination of our Business Contract.
Ref: Our Business Contract dated 20th October 2009.
We would like to inform you that despite our constant complaints about the sub-standard surgical equipment that we are receiving from you, there has been no action taken by you to improve the situation.
Therefore, we have decided to terminate our Business Contract mentioned in “Ref”. The termination is applicable from 31st May 2010.
Please get your outstanding bills, if any, settled by us within 19th May 2010.
Thanking you.
Yours truly,
______________
Ashwin Hosmat
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