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Contract Termination Letter Sample

Contract Termination Letter Sample

While terminating a contract, one needs to know the correct method of writing the termination letter. The article below contains a contract termination letter sample, which will help you write a good termination letter.
Ratnashri Dutta
Last Updated: Feb 14, 2018
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Whether you require a contract termination letter in order to dissolve the relation between an employer and an employee, between a landlord and a tenant, or between a businessman and the client, you need to know the right format. The contract termination letter is a document that mentions the terms and the conditions that the two parties propose, in order to dissolve the recent relation, such as landlord and tenant, or employer and employee, and so on. The letter should be written in such a manner so that there are no loopholes, which in turn, might cause some problems in the future. It is due to these reasons that one needs to know how to write this letter properly.

Steps to Remember

One needs to learn the proper methods so that there is no problem faced by the receiver in understanding the content of the letter.

Person or Entity With Whom Terminating Contract
  • Mention the name of the person or the name of the entity with whom you want to terminate the contract.
  • You have to make sure that you mention the name of the person or the company properly so that there are no confusions.
  • Besides, also mention the date and the time when the letter was written.
  • Next, mention the reason for the contract termination.
  • Mention sensible reasons, and make sure there are no loopholes in the letter so as to avoid problems in future.
  • If you have any personal animosity for the person, please do not mention it in the letter.
  • State the reasons in detail, and maintain a neutral tone.
Be Polite
  • This is one of the important points you need to keep in mind; be polite.
  • Regardless of what has happened, how rude the other party had been, or what losses you have had to go through, you must be exhibit politeness.
  • One of the prime reasons for this is that you might very well meet that party in future. Circumstances might be different then, and might create an awkward situation; therefore, stress on the politeness factor.
Date, Signature, and Seal
  • After you have finished writing the letter, put down your signature, the date, and also the seal of your company.
  • Next, proofread the letter so that there are no grammatical or analytical errors.
Letter Format

Name Of Company
Address Of Company

Dear Ms. Sarah Brown,

This is to inform you that your employment with us has been terminated as of date 05/03/2005. We regret taking this action against you, but we had no choice.

The reasons behind taking this drastic measure is that you have violated Clause 23 of our Company's policy by making a deal with our competitors. You have also violated Clause 34, which says that you cannot work in any other company while continuing your work with us. We had given you warning earlier as well, both verbal and written. However, you were far from rectifying your mistakes.

Hence, we had no option but to terminate your employment. You have to meet Mr. Richard Smith, who will explain in details all the paperwork that you have to carry out and the payment that you will receive. Kindly get in touch with him.

We wish you luck for your future and would like to thank you for working with us.


Just follow the above steps, keep the letter short, and use simple and clear language so that no one has a problem in following the letter.