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

From,
Name of Sender
Address of Sender

Date

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.

Sincerely,
(Your Signature)
Sender's Name
Job Title