How To Terminate A Contract Letter

How To Terminate A Contract Letter

Once you have entered into a contract, you and the other party have created a business relationship beginning on the date it was signed. You will also incur certain joint responsibilities, obligations and liabilities as part of this relationship. The terms and conditions of the agreement will specify when 1) one party can terminate the contract and 2) when both parties must terminate the contract. Here is how to write a Terminate a Contract Letter in either circumstance.

One-Sided Terminate a Contract Letter

Good communication is essential for performing any work. When there are disagreements concerning the terms and conditions of a contract that have continued to linger, then the final straw can be legally established with the Terminate a Contract Letter. It is important to write the letter in a respectful fashion.

The signing of a contract establishes the beginning of the relationship between two parties. Unless designated, that relationship will continue under the terms of the agreement. A Terminate a Contract Letter sets the end time for the agreement. It is helpful for record-keeping purposes so that successors understand the time period covered by a contract.

When you write a Terminate a Contract Letter, you must address and date it as you would a normal letter. In the subject line, write the name of the contract between you and the other party. Include:

  • Contract number if possible
  • Beginning date of said agreement

State that this is a notice that terminates the said contract on [such-and-such a date] based on the terms and conditions of the contract. Naming any violations can be helpful. Provide contact information at the end.

Terminate a Contract Letter

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Mutual Termination of Contract Letter

If possible, a mutual formal declaration letter of the end of a contract is preferable. This will close any loose legal ends. The mutual amicable termination of the contract by both parties leaves the door open for future business and can prevent any lawsuits.

The mutual Terminate a Contract Letter should begin with the date, names of parties, and addresses. Name the original contract, attach a copy if possible. State the agreement of both parties to “mutually terminate and cancel” said contract effective on the stated date. Use words to the effect of “This Termination of Contract Letter will act as a mutual release of all obligations under said agreement.” Print your name on the bottom, sign, and date.

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