Example of Cancellation of Contract Letter

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When it comes to business contracts, there are various reasons why one may want to cancel the agreement. It could be due to a breach of contract, dissatisfaction with the terms of the contract, or any other valid reason. Regardless of the reason, it is essential to terminate the contract appropriately and professionally. One way to do that is by sending a cancellation of contract letter to the other party. Here is an example of how to write one:

[Your Company Letterhead]


[Recipient`s Name and Address]

Dear [Recipient’s Name],

I am writing this letter to inform you that we have decided to cancel the contract [contract number and date] between your company and ours, effective [date of termination].

The reason for the termination is [state the reason for terminating the contract]. We have tried to work through the issues, but regrettably, we have not been able to come to a satisfactory resolution. Thus, we believe it is in both parties` best interests to end the agreement.

Please be advised that we intend to fulfill all of our contractual obligations up to the date of termination. We also request that you reciprocate by fulfilling any remaining obligations or returning any property or equipment belonging to us.

Please let us know your understanding of the termination and any further steps that we should take to close this matter. We appreciate the time and effort that you have invested in this agreement, and we hope to maintain a cordial relationship with your company in the future.


[Your Name]

[Your Position]

Remember, it is crucial to keep a copy of the cancellation letter for your records. Additionally, it is always best to consult legal counsel before terminating a contract to ensure that you are doing so within the parameters of the agreement and the law.

In conclusion, cancelling a contract is never an easy decision, but sometimes, it is necessary. When sending a cancellation of contract letter, it is essential to be clear, concise, and professional. By following the above example, you can ensure that the termination of the contract is handled appropriately and respectfully.