Termination of Contract Letter

A formal notice ending a business contract with a supplier, customer, contractor or service provider. If a notice is served the wrong way, gives the wrong date or relies on the wrong grounds, it may be invalid – or may itself be a wrongful termination. The letter offers four routes: ending on notice (Option A), for breach under a contract clause (Option B), accepting a repudiatory breach (Option C) or by mutual agreement (Option D), with a checklist.

• To give notice to end a rolling or fixed-term contract under its termination clause
• Where the other party has seriously breached the contract and you want to end it
• Where both parties want to bring the contract to an end on agreed terms

• Work through the checklist at the end before writing anything
• Read the contract’s termination, notices and “consequences of termination” clauses in full
• Choose one of Options A to D and delete the others – do not mix grounds unless you have taken legal advice
• Calculate the termination date carefully and send the letter in the way the notices clause requires
• Keep proof of sending and delivery