How to Write a Contract Termination Notice With Samples

Learning how to write a contract termination notice will help you prevent misinterpretation and sorrow about giving up legal rights.

When a business partnership or other legal commitment has failed to bear fruit, it is common practice to cease the relationship formally. You can terminate the relationship with the other party by employing a termination letter. 

This article will teach you all you need concerning termination notices and how to write one in seconds using INK.

What is a Contract Termination Notice?

This notice is a legal document that sets up the terms for the termination of a business contract. You can use it when:

  • A contract you are involved with is completed. 
  • Under contract terms, parties are unhappy with the performance of each other.
  • A party no longer needs the services of the other. 

The notice must be properly drafted to provide evidence and legal rights for the parties involved.

Reason for Termination Notice

A contract’s expiration date and the terms under which any party may terminate the agreement are detailed in a termination letter. 

The letter proves that you informed the other party of the contract’s cancellation. If the other party claims they were never notified, you will have this evidence to refute their claim.

Termination letters also allow for a peaceful exit rather than in anger or an argument. Thanking the other party for their service and maintaining a cordial, professional connection can be accomplished with a termination letter.

black and silver fountain pen
Photo by Álvaro Serrano on Unsplash

What Tone Should a Termination Letter Carry?

The letter’s tone should be formal and direct, but it should also be sympathetic and kind. Your regret at terminating employment and gratitude for the employee’s time and effort should be conveyed in the letter. There should be no flowery language or attempts to gloss over the realities of the message.

To avoid confusion, a termination letter must include specifics like dates. Careful drafting of the letter is required to prevent leaving room for interpretation that could lead to complications. The letter’s termination method must also be consistent with the terms of the employment contract.

Steps on How to Write a Contract Termination Notice

To formally terminate a contract with another company, one company must write the other company a letter of termination. The letter needs to cover these main points:

  • Meaning of the Contract.
  • Date of Contract.
  • The justification for breaking the contract.
  • Requirements upon leaving employment.
  • The letter’s date.

Sample Letters Using INK: Contract Termination Notice

 Sample 1:

Date

To whom it may concern, 

I am writing about the contract entered into on March 30, 2015. Under Section 9.4 of the Contract, I hereby give notice of my intention to terminate the agreement immediately. Please let me know if you have any questions or concerns. 

Sincerely, 

[Your name]

Sample 2: 

Date

To whom it may concern, 

 I am writing to notify you that I am terminating our contract immediately. According to Section 9.4 of the Contract, 

I have enclosed a certified check for $100, as required. Please let me know if you have any questions.

Sample 3:

Date

Dear Sir or Madam, 

I am writing to inform you that I will terminate the contract between us immediately. Under Section 9.4 of the Contract, this is the best course of action for both parties involved. Thank you for your time and understanding in this matter.

To Wrap Up

If you’re not sure how to write a letter to end a contract, INK can get one up for you in seconds.

How to Write a Contract Termination Notice With Samples

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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