Letters Ending Contracts inform the recipient of the sender’s intention to end a contract that both are party to. To do this, this Letter Ending a Contract template includes the following terms and sections:
Names, addresses, date and reference
The Letter starts with a standard letterhead structure, clearly setting out the parties to the contract (ie the sender and the recipient), their addresses, and the date of the Letter. The reference number or code the parties can use to identify this Letter is also set out here.
Re: Notice of termination of the contract
The body of the Letter starts with an identification of the Letter’s purpose: providing the recipient with formal notice of the sender’s intention to terminate (ie end) the relevant contract.
Introduction
Next, the parties to the contract in question are identified and the date of the contract, along with which party is expressing a wish to end the contract.
Notice
The content of this section will differ depending on the reason why the contract is being ended.
If the contract is being ended for a reason other than the recipient’s default (ie not because the recipient has failed to perform their obligations under the contract), the clause of the contract that allows the sender to end the contract in these circ*mstances is identified and it’s stated that the notice period specified in the contract itself is being given (ie the contract should end after that period of time has elapsed).
If the contract is being ended because the recipient has not adequately performed their obligations under the contract, this will be set out. The recipient’s relevant obligations under the contract are identified and how the recipient has defaulted on these obligations is explained. If the recipient has a chance to remedy their default (eg by improving performance), this is also communicated, along with the length of time the recipient has to achieve this and the fact that, if they don’t, the contract will then be ended. The clause of the contract allowing for such a remedy period is also identified. If no remedy period is available, this is noted and it’s highlighted that the contract is to end without a notice period on a specified number of days after the Letter is sent (eg 2 days, to take into account the Letter’s postage time).
Reservation of rights
This section will be included if the contract is being ended because the recipient is in default of the contract. It will set out the sender’s express reservation of their rights to claim any losses suffered due to the recipient’s breach of contract, under the contract and under the law more broadly.
Acknowledgement and further actions
This final section asks the recipient to acknowledge when they receive the Letter. It also sets out various things that the recipient should do if and when the contract ends. For example, return all of the sender’s property, destroy any confidential information relevant to the contract, and any other specified actions.
Yours faithfully…
The Letter ends with a space for the sender to sign and date before the Letter is sent.
If you want your Letter Ending a Contract to include further or more detailed provisions, you can edit your document. However, if you do this, you may want a lawyer to review the document for you (or to make the changes for you) to make sure that your modified Letter complies with all relevant laws. Use Rocket Lawyer’s Ask a lawyerservice for assistance.
