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Contract Cancellation Letter Template

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    When one of the parties involved in an agreement is dissatisfied with the progress of a signed contract that party may decide to opt out based on a set down procedure. The dissatisfied party may write a contract cancellation letter to their associates; stating with reasons why the agreement should end.

    A contract cancellation letter is a legal document issued with advice from lawyers to avoid court penalties. The aggrieved group must study the contract document to make sure that cancellation depends on breach of sections of the agreement other than personal squabbles.

    For example, if you entered into agreement to supply a hotel with 100 chickens per day for two years; it is in your legal rights to cancel the contract if the hotel turned away the supply after one month citing low business.

    The hotel will be under obligation to pay for damages and loss of business. The following is a sample of a contract cancellation letter written by a supplier.

    (Sender Name)
    (Sender Title/Position)
    (Sender Organization Name)
    (Sender Street Address)
    (City, State, Zip Code)


    (Recipient Organization Name)
    (Recipient Street Address)
    (City, State, Zip Code)

    Dear Sir/Madam,


    Following a series of meetings about breach of the signed agreement (mention breached sections and clauses) by your side (mention business name), we write to tell you that we have opted out of the contract.

    We wish to bring it to your attention that our company has incurred business losses estimated at (state estimated figure) due to your actions.

    We have instructed our legal team to cause meeting with you to find a negotiated settlement of the losses accrued. Should you fail to come to a negotiated settlement within a period of (state an appropriate period), we shall have no option but seek legal redress.

    Yours Faithfully,
    (Mention your name and position in business)

    Click here to learn how to write an agreement cancellation letter.

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