How to Write (+ Format and Sample)

A Contract Cancellation Letter is a formal document sent to an individual, company, or agency, stating your intent to end all business relations with them as previously indicated in your contract with them. Because most contracts are legally binding, you should consult an attorney when drafting this letter.

Terminating a business contract can be hard on many people, with most business people not knowing what to say. Unfortunately, this daunting task is necessary where you no longer wish to be in a contract either due to poor quality or unmet expectations.

In this article, we provide a guide and some example letters to help you cancel a contract.

Contracts are legally binding agreements that can carry grave consequences if handled inappropriately. That said, they are not permanent, and you don’t have to remain in a contract that is no longer benefiting you. If this is the case, you should consider drafting a cancellation letter.

Because contracts are legal documents, it is always advisable to consult an attorney before terminating one. The attorney will ensure you are not breaching the contract and that you follow the correct procedure, as stipulated in your agreement.

As mentioned, a contract cancellation latter can be used in a legal context, meaning it should always be written in a formal business format. In the introductory paragraph, state your reason for writing clearly to avoid any misinterpretation. Then, include the following details:

• The company or agency’s name as indicated in the contract
• Your name as indicated in the contract
• The date and description of the contract
• A statement indicating that the reader no longer has permission with any activities involving your account
• A request for confirmation on the cancellation status
• The legal steps you will take if the cancellation is not effected after the notice period.

A Contract Cancellation Letter is crucial as it informs the reader that you would like the service to end and they shouldn’t renew your contract. Consider the following tips when drafting it:

• Use a professional and courteous tone.
• Always type your letter on good quality paper and add a handwritten signature.
• Keep your letter to less than 4 paragraphs.
• Help the reader understand why you are canceling the contract.
• Illustrate in the letter that you are following the cancellation guidelines stated in your contract.
• Always thank the reader for the previous cooperation and wish them well. Don’t burn any bridges.

Contract Termination Letter (Word Template)

Any written agreement between two entities can be considered a contract, which means you can use your Contract Cancellation Letter to discontinue anything from supplier services to a relationship with a client. When drafting your letter, keep your tone professional and polite and your message short and to the point. Always let the reader know why you are ending the contract and when it will take effect.