How To Write A Letter Of Intent To End A Contract

When two parties come together to draft and execute an agreement, they may or may not incorporate terms to end the contract or legal relationship. For example, a homeowner may retain the services of a contractor to apply a pressure washer to her driveway; the contract may involve certain provisions that outline the area to be washed, the money to be paid and how satisfaction with the service will be expressed. In this case, the ending of the business relationship and of the agreement can be clearly inferred by the contract provisions.

Contracts that do not include a clause or provision for termination can still be canceled by means of a letter of intent to end a contract. This letter must clearly state the intent to put an end to a contract or a business relationship. It is important to note that this letter of intent is not the only means of contract termination. If the parties can end the contract by mutual agreement, an amendment can be drafted, incorporated to the original and executed.

Writing the Letter

The name and address of the individual or business entity that intends to terminate the contract should be placed at the top and center of the letter, followed by the date. The name and address of the other party should be clearly written next. From here on, the letter can take on a warm and pleasant tone if the parties are friendly to each other.

After the greeting, a brief reminder and summary of the contract terms should be explained. The intention to terminate the contract should follow along with valid and supportive reasons. Let’s say a woman retained the services of a beautician to come to her house every Friday for hairstyling. After a few months, the woman realizes that she can no longer afford this service. What needs to be explained in the letter is that there is a change of circumstances that necessitates the termination of the contract.

Considerations and Options

Depending on the circumstances of the business relationship to be terminated, certain considerations can be made and options proposed. In our example above, the woman may choose to compensate the stylist one more time before the contract is terminated. Moreover, the woman may also suggest that a new contract can be drafted in the future when she is once again able to afford hairstyles at home.

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