Sample Letter of Cancellation of Business Contract

A contract cancellation letter is a formal letter to communicate to the other party that the business contract has been canceled. The letter should be clear on details about the cancellation and contain key elements to avoid incorrect interpretations and misunderstandings.

The sample letter of cancellation of business contract in this guide will help you craft a professional cancellation letter. 

black and silver fountain pen
Photo by Álvaro Serrano on Unsplash

Writing Tips for Cancellation Letters

When you are seeking to cancel a contract, there are certain key pieces of information that you need to provide. You must communicate your intent and the information required to comply with any cancellation clause. Here are some tips to keep in mind when writing a business contract cancellation letter.

  • Communicate your reason for canceling the contract (optional).
  • Keep the tone professional and polite.
  • Convey your message in straightforward language.
  • Nail down all the pertinent details, no matter how minor.

Sample Letter of Cancellation of Business Contract

Name of the Recipient

Designation ____________________ 

Organization ____________________ 

Address ____________________ 

Subject: Cancellation of Contract

Dear [Name of Recipient],

We write this letter to inform you about the cancellation of the business contract with your company from [date]. Please let your concerned staff know about this contract cancellation.

The reason for this cancellation is our office’s relocation to Australia. We request that you take immediate actions to deliver all outstanding orders. We will remit outstanding invoices before [date].

This letter is our notice about the contract cancellation between our organization and you. Regarding sections 5A and 3C of our agreement, this cancellation is legal. Please contact me with any questions. Thank you. 


Authorized Person’s Name 


Organization Name 



Nathan Hilary

President, [Company Name]

City, State, Zip Code

Subject: Cancellation of Business Contract

Dear Mr. Hilary,

Regarding the terms of our business contract, please let this letter serve as the contract termination on [date]. You’ll find that this 30-day notice meets the legal constraints of the agreement and allows us to terminate the contract without any legal action.

We appreciate your dedicated service these past few years and hold no ill feelings toward you. A larger firm has acquired our business, and will be sourcing for supplies through the firm’s vendors.

Please, fulfill all outstanding orders as per order instructions. Outstanding invoices will be remitted to your account by [date], but we won’t generate any new purchase orders for your company afterward.

If you have any questions or want more info about the discontinuation of services, contact me at 000-000-0000 or

Sincerely Yours,

Williams Gregory

Wrapping Up

When a company decides to terminate a contract, a letter of cancellation is written by a business to the contractor. Such letters must communicate the reason for the cancellation of the contract. It must be written in a polite and professional tone. The sample letters above will guide you in writing the perfect business cancellation letter.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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