Contract Termination Letter Sample

Whether one writes 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, one needs to know how to write the best termination letter. The contract termination letter is a document that talks about or 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
Next you have to 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 this, also mention the date and the time when the termination letter was written.

Reasons in Details
The next important thing that you have to do while writing a termination letter, is mention in details the reason why the contract has to be terminated. This is the most important step that you have to keep in mind while writing the letter, because if there are any loopholes in the letter, then there might be problems in future. Also, whatever your feelings are for the company or for the person, with whom you want to terminate the contract, should not show on the paper. Keep your private feelings to yourself. Mention the reasons for dissolving the contract in details. Keep your tone neutral.

Be Polite
Politeness will get you anywhere, and while writing a termination letter, you have to keep this in mind. No matter what, no matter how rude the other party had been, no matter what loss and problems you had to go through, remember, that in your letter you have to be polite because you do not know that in future you might need or meet the other party again.

Date, Signature, and Seal
After you have finished writing the contract letter of termination, you have to put your signature, the date and also the seal of your company. Next proofread your letter so that there are no silly mistakes and that there are no mistakes in the terms and conditions.

Letter Format

Date 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 25/03/2005. We regret to take this action against you, but we had no other options. The reasons behind taking this drastic measure is that you had violated Clause 23 of our Company's policy by making a deal with our competitors. You had 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. But still you were found violating our Company's clauses. 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. Sign: Name: Company:

So now you have an idea as to how to write one. 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.