In organizational setups, different contracts and agreements are signed between different parties on a daily basis. These agreements can also be terminated under certain circumstances. In order to do so, it is necessary to inform the other party about the same via a contract cancellation letter. Since it is a formal way of communication, it is important to be able to convey the message in a professional manner.
How to Write a Cancellation Letter for a Service Contract
Format of a letter written by an employer to his employee informing him of the termination of the employment contract is shown below.
The first paragraph of the body of the letter contains the details about the actions taken on the employee.
The second paragraph cites the reasons for the actions.
The third paragraph lists the implications and future actions that may have to be taken by both or either of the parties.
These letters are usually written in the official letterheads and the date is printed on the right corner. Another sample of a contract termination letter is given below. This is written by the housekeeping contractor to the human resources manager of a company, citing that his staff will no longer for the company.
Termination of Contract Clause
Wz-3432 Mollis St.
City of Industry Louisiana 67973
4565 Semper Ave
Astoria NJ 34545
Dear Eleanor Jennings,
I would regretfully like to inform you that our company (A1 Housekeeping Services) no longer wants to provide house-keeping services to ABC Global Solutions.
The decision to end this seven-year-long relationship with your company has been made by the executives of our company after taking into account the feedback provided to us by our staff working here. They seem to be unhappy with the work hours and the treatment they receive.
According to our contract, a three-month notice-period is required to be provided by the party that initiates the termination of the contract. Therefore, I would like the notice period to start today.
By the end of the notice period, I also expect all the dues to be cleared.
Due to the varied and multipurpose nature of the contract, it is used as a legally binding document in a number of places. It lists out specific terms and conditions and contains a written record of both parties’ agreement to adhere to them. Therefore, cancelling such a contract is an equally heavy job and it is important that there be plain and formal communication regarding it.