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10 Tips for Writing an Contract Cancellation Letter

Here are some tips to help you writing contract cancellation letter.

  • Compose it only on your business letterhead. This a formal letter so it has to composed on a standard business format.
  • The language should be polite. Write a short and to the point contract cancellation letter in an apologetic tone.
  • Start with the name of the concern person, title, organization. It will be better to mention the specific details of all the parties to the given contract.
  • Write a crisp and meaningful subject line to deliver the purpose in a single glance to the reader.
  • Mention important information like the contract number, term of the contract and the date of starting of the contract at the beginning of the letter. You can preferably enter these details in the subject/reference line.
  • Add some line to express your apology and regret for sudden termination of a contract.
  • Do not forget to discuss about the notice period for termination of the contract, if there is any. The most important part of the contract cancellation letter is monetary penalty. Thus, mention the mode of payment clearly in your letter.
  • You are required to specify the reasons for termination of a contract.
  • Include the terms and conditions mentioned in the contract. But in case there are no such terms, you do not have to emphasize.
  • Conclude with a positive note. Express your gratefulness by indicating that you are willing to do business with the party in future.

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