Termination Letter Template for Vendor – Format Sample & Example

A vendor termination letter is written to a vendor or the supplier of goods for terminating the contract with him because of any discrepancy in the supply of goods. It could be due to any reason like irregularity in supply date, delayed supply, the problem with goods, etc. when such issues arise, eventually, dealers have to stop receiving goods from the vendors. For this, a formal letter has to be written.

The letter should explain the reason clearly and a final date from which the dealer will stop receiving goods should also be mentioned. The process of payment settlement is an important question for the vendor in this scenario and it is also mentioned in the letter.

Termination Letter for Vendor Format

A letter of Termination for the vendor carries legal weight and should be formatted properly. Due attention should be paid to every detail and mistakes should be avoided completely, if possible.

How to write a Termination Letter for Vendors

Name of Sender
Address of Sender


Name of Recipient
Address of Recipient

Dear ———- [Name of the vendor],

This letter is written in reference to the agreement between our companies [name of your company] and [name of vendor company] dated [date of contract]. We are sorry to inform you that we wish to terminate this contract as on [date of termination].
As you are already aware we have been facing numerous issues with the [product/service] that you are supplying. The details of these issues have been reported to you in previous correspondences. Despite repeated requests, these issues have not been addressed satisfactorily from your side.
Please accept this letter as our formal notice of contract termination. We will not be working with you post the delivery of the current order. We regret having to take this decision but as our previous requests have not been met, we are compelled.

(Your Signature)
Sender's Name
Job Title

Termination Letter for Vendor Sample

Rahim Henderson
5037 Diam Rd.
Daly City Ohio 90255
(453) 391-4650


Bryar Pitts
5543 Aliquet St.
Fort Dodge GA 20783
(717) 450-4729

Subject: (______________)

Dear Bryar Pitts,

I am writing this letter to inform you that we have to terminate the contract with your company [vendor company] and will no longer be needing your services as on [date of termination].
We appreciate all the work you have done and the services you have provided until now. But due to reasons like [list of reasons for dissatisfaction], we have to terminate your contract. Despite repeated communication and complaints, you failed to change the low quality [product/service].
You are hereby advised to cease all the further performance. Your full and final payment will reach you directly to your office or wired to your account. If you have any queries regarding the termination, please feel free to contact us at [phone number] or email us at [email id].

(Your Signature)
Rahim Henderson

Termination Letter Template for Vendor

Termination Letter for Vendor


Termination Letter for Vendor in PDF Format

  1. PDF Template 1

Termination Letter for Vendor in Word [Doc.] Format

  1. WORD [Doc.] Template 1


Drafting the right letter of termination for a supplier or vendor requires tact, skill, intellect and expertise which, unfortunately, not everyone possesses. For this reason, we have the above formats and samples so that you can get the job done in the right manner.

Related Articles:

5+ Free Sample of Termination Letter For Poor Performance

3+ Sample Format of Termination Letter For attendance

20+ Free Sample Termination Letter Format with Example

2+ Sample of Lease Termination Letter

5+ Sample format of Termination Letter for Cause

Add a Comment

Your email address will not be published. Required fields are marked *