Knowing the Business Contract Termination Letter

Knowing the Business Contract Termination Letter

Being a business owner means you have to understand how to write the business contract termination letter. This is one of the letters that you will probably need to pen down in the business. Below is the information about the letter.

122 Business Contract Termination Letter

What is Business Contract Termination Letter?

A business contract termination letter is the type of letter containing a termination of business agreement. It is usually sent before the actual due date of the contract. The termination can be based on anything, starting from disagreement to change of price.

How Do You Write a Letter to Terminate a Business Contract?

To write the letter, you need to include these parts and avoid misunderstanding:

The reason for the termination

The contact of person in charge for the termination

The willingness to discuss the termination openly

How Do You Write an Email to Terminate a Contract?

The letter must be written clearly and straight forward. Other than that, it will be confusing for both parties to understand the letter.

How Do I Write a Letter to Terminate a Service?

This is a formal letter, so you must write it in appropriate and formal tone. You can use the example below as your template to write the letter.

Sample of Business Contract Termination Letter

The example of the letter:


October 6, 2020


Sarah Payne

Payne Fresh Dairy

Kellan 26 St,

Highland, MN, 2910


Dear Ms. Payne,

I am writing to you this letter to inform you that we, Green Garden Restaurant, are no longer interested in using Payne Fresh Dairy as the supplier of eggs and dairy to our restaurant. We are aware that the business contract is not going to end until the end of the year but we have decided to terminate the contract.

The reason for the termination is because the quality of the products we have received for the last two weeks was terrible. The last straw was three days ago where the entire box of eggs we received was spoiled and none of the eggs could be used, let alone edible. This is why we decided that the contract must be ended immediately.

I am aware that there will be compensation for the supplier if the business contract is ended by the restaurant before it ends. If you do not mind about this, we would like to invite you or your representative to meet us in person to discuss this problem. We expect no hard feeling between any of us, considering that this is all straightly business and nothing personal.

Please contact me at this email address or you can also call me at phone number (301)2718-389 and I will set an appointment for the representative of Payne Fresh Dairy and us, Green Garden Restaurant, to talk about this problem and end the agreement. Thank you very much.



Jillian Faucett

Green Garden Restaurant


Terminating a contract is never easy. However, if you know exactly how to do it, you will be able to end the agreement amicably. This is why everyone should know how to write business contract termination letter when they own a business.




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