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How To Write An Agreement Cancellation Letter

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    A good business agreement must include provisions that allow the aggrieved party to opt out in event of breach. An agreement cancellation letter must follow a series of meetings held to come to a negotiated settlement.

    When writing an agreement cancellation letter, involve the services of legal experts to avoid possible court action and penalties. Such a letter is a legal document whose wording and presentation can weaken your position in the courts of law.

    If your business is not big enough to employ the services of a lawyer, browse the internet for a number of ready designed templates that will act as the first step for your letter.

    Some cancellation letters make mentions of possible court actions to recover damages and losses but this depends on the provisions of the agreement. If you consider termination with possible court action, the letter should give way for a negotiated settlement within a specified period.

    The following is a template of an agreement cancellation letter.

    (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,


    We would like to bring it to your attention that our agreement with you for (mention what the agreement is for), has been terminated this day (mention date).

    After a series of meetings (mention dates) about (give reasons) and lack of improvement from your side, we have decided to opt out of the agreement.

    Our company is also considering legal proceedings to recover damages and losses, unless you report to our office for a negotiated settlement within a period of (state period).

    You should consider the matter with urgency and for further information, contact our contracts department at the head office by (state period).

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

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