Get Access to World’s largest Template Library & Tools

Guide to Writing a Business Termination Letter

In the sphere of business and management, agreements or contracts play a pivotal role. They are significant in sealing and safeguarding the relationship between business partners or between business owners and their clients. Because business contracts are executed in a consensual manner between its parties, then it follows that business dealings require prior notice before one party can terminate the said agreement.

This is where business termination letters come into the picture. It is inevitable that business dealings and agreements are no longer needed due to the accomplishment of its purpose or expiration of contract term. In line with this, a party to a business contract have the right to terminate the said agreement under reasonable and lawful grounds. Moreover, writing the same is made easy and convenient with the following discussions and letter samples pertaining to the how-tos and overall dynamics of business termination letters.

Partnership Termination Letter Template

partnership termination letter template
File Format
  • Google Docs
  • Word
  • Pages

Size: A4 & US

Download Now

Day Notice to Terminate Tenancy Letter Template

day notice to terminate tenancy letter template
File Format
  • Google Docs
  • Word
  • Pages

Download Now

Free Client Termination Letter To Accountant

free client termination letter to accountant
File Format
  • Google Docs
  • Word
  • Pages

Size: A4 & US

Download Now

Free Business Contract Termination Letter

free business contract termination letter
File Format
  • Google Docs
  • MS Word
  • Pages

Download Now

Free Business Partnership Termination Letter

free business partnership termination letter
File Format
  • Google Docs
  • MS Word
  • Pages

Download Now

Free Business Termination Acceptance Letter

free business termination acceptance letter
File Format
  • MS Word

Download Now

Sample Fixed Term Contract Termination Letter Template

sample fixed term contract termination letter template download 1 788x

Understanding the Purpose of Business Termination Letters

Nowadays, business ventures and activities take a variety of forms. Taking into account the type and nature of a business agreement or transaction entered into by the parties, business termination letters are written for varied purposes. Below are some of the general purpose of writing the said letter.

As a Basic Manifestation of Business Courtesy

In the realm of business, business persons value the relationship that they’ve built not just pertaining to their clients but also to their business partners. Unilaterally terminating an agreement without any notice whatsoever to the other part and without valid grounds is considered as a manifestation of disrespect and unprofessionalism. As a business letter, managers and business owners must never ignore nor neglect the importance of notifying the other party. This is specifically significant if such decision can affect the business relationship between them.

As a Sign of Good Faith and Observance to the Business Agreement

Aside from being a business letter, a business termination letter is also considered as a legal document. Most business agreements embody grounds for termination which either party to the contract may invoke. Furthermore, the said agreement also outlines the scope and covered period. As parties to the agreement, they should observe the terms and conditions and perform their obligations in good faith. If ever they decide to terminate, the termination letter must cite valid and reasonable grounds to prevent resource wastage.

As a Matter of Documentation

Bear in mind that valid termination letters are proof of the cessation of an agreement. If ever further conflict arises between the contracting parties, the document is admissible as evidence.

Indeed, the relevance of business termination letters cannot be understated. They help promote the good and sound relationship of business partners even beyond the contract terms.

Notice of Termination Contract Letter

notice of termination contract letter download page 0011 788x1020

Basic End of Contract Thank You Letter

basic end of contract thank you letter page 001 788x

Common Grounds for a Valid Business Termination Letter

A business termination letter will not be complete without embodying the reason for such termination. There are indeed circumstances and scenarios that permit or give one party to a business contract the right to come up with a termination letter. Below are some of the common grounds or reasons for writing a business termination letter.

Circumstances beyond the Control of the Business Partners

Under the law, these are also referred as fortuitous events or circumstances that are unpredictable, unforeseeable, unintentional, unplanned, and the like which hinder or make it impossible for the parties to realize the objective of the contract. Examples of such are natural calamities such as typhoon and earthquake and other emergency situations.

Commission of Acts that Constitutes a Breach of Contract

Breach of contract refers to an act wherein a party to a contract disregards, ignores, or fails to comply with his or her obligations and responsibilities under the business agreement. As long as the facts and circumstances substantiate breach of contract, a party can write a valid business termination letter. To hold otherwise will be prejudicial to the party who complied with his or her obligations faithfully.

Commission of Fraud and Other Acts of Misrepresentation

When it comes to fraudulent acts, the said ground covers a variety and diversified circumstances. Examples of such are concealment of material facts, acts of misrepresentation, and many more. It will truly depend on the circumstances of the case and the nature of the business agreement.

These are some of the common grounds and reasons why business managers opt to terminate a contract. There are still more specific grounds specifically those that are concretely mentioned in the contract.

Partnership Termination Letter Template PDF Format

download partnership termination letter template pdf format page 001 788x1020

Contract Termination Letter in PDF

contractterminationrequest page 002 788x1020

Termination of Business Management

termination letter of business management 2 788x1020

Free Termination of Services Contract Letter Template Sample

termination of services contract letter template download 1 788x

Essential Components of a Business Termination Letter

Writing a termination letter for a business-related purpose is easy if you know the basic elements of such letter. Knowing the purpose and how such elements are used will guide you in outlining the content of your letter. The essential components of a business termination letter are as follows.

Company Letterhead

These type of letter forms part of the business correspondence between business persons. That is the company letterhead must be indicated to make the letter appear and sound official and professional. This section may include the name of the company, the basic contact details, the company logo, and other background designs that represent which form part of the brand statement of the company.

Letter’s Heading

Because such letter involves two or more companies or business entities, the return address must be specifically indicated. You may also include the company’s fax number and email address.

Statement as to the Letter’s Subject Matter

After the letter’s heading, it is highly suggested that you should indicate the subject matter of the letter. It is more easy and convenient for the addressee to know the purpose of the letter and put them on their list of priorities. In here, you may write statements such as “Subject: Letter of termination of the business agreement.”

Substantiate the Reasons for the Termination

The addressee must fully grasp the reason for the termination. You should specify the reasons why your company decided to end their business agreement with the addressee. Cite the grounds in a clear and straightforward manner. Is it about the commission of fraud? Or is it about an unfavorable financial crisis that greatly affects the terms and object of the agreement?

Most importantly, the effectivity date of the said termination must be specifically provided in the body of the letter. Moreover, you may cite specific provisions of the contract that were violated by the other property to further emphasized that your reasons are valid. Indeed, regardless of the type of reason, it should be substantiated.

Concluding Statements

In here, you may extend your final thoughts and message to the addressee. If the reasons for such termination is not due to fraud or negligence of the other party, you may positively end the letter with a statement of gratitude and appreciation because of business opportunities and activities that you’ve executed together. Furthermore, you can also reiterate your contact details, if ever the addressee has further inquiries in relation to the said letter.

Signature of the Parties

Make sure that the letter is dated and signed. The authorized representatives of the business must affix their signatures at the end of the letter. You can also keep an extra-copy of the letter for reference and documentation purposes.

Aside from the cited components, you can add more depending on the circumstances of the business agreement.

Company Letter of Termination

company letter of termination 2 788x1020

Service Contract Termination Letter Template

service contract termination letter template 1 788x

Editable Termination of Services Letter to Client in MS Word

termination of services letter to client editable 1 788x1020

More Tips and Writing Strategies

To further enhance the quality of your business letter, you may refer to the following tips:

Go straight to the point.

Like any other business letter, your letter must be brief, concise and straightforward. Bear in mind that the recipients of the letter are also busy with various commitments at hand. If it is clear and concise, it is more easy for them to provide a response.

Adopt a positive language.

Regardless of the gravity of the offense or grounds for the such termination, ensure that you will not use any informal or, worse, harsh language. Always observe utmost decency.

Convey your gratitude and appreciation.

Because of the business relationship you’ve established with them, you should convey your appreciation and gratitude for the opportunities and their contributions to the growth and development of your business as a whole. In addition to this, you may also cite specific accomplishments and milestones that they helped you in attaining such success.

Adopt a formal and professional formatting.

As a business letter, the termination letter must be professionally written and printed on a clean sheet of paper. You should take into account the margins, font size and style used, and the sentence structure. Proofreading it is thus highly suggested to ensure that the letter is free from grammar issues.

Writing a termination letter is not really a favorite endeavor for most business representatives. However, they are inescapable realities that all business persons must accept especially when clear grounds for termination exists and the reputation of the business is at stake.

Therefore, business termination letters may come in various formats as long as it suits the context of parties’ business relationship. Preparing and writing one demands utmost diligence and care due to its legal character. Writing a professional letter is a must to uphold the professional standards and core values of the company.

More in Letters

22+ Internal Transfer Letters16+ Sample Professional Reference Letter Templates
16+ Banking Cover Letter Templates - Sample, Example18+ Sample Employment Letters
54+ Sample Business Letters - DOC, PDF14+ Sample Behavior Warning Letters - DOC, PDF, Apple Pages, Google Docs
11+ Sample Nursing Resignation Letter Templates - PDF, DOCResignation Letter Templates - 16+ Free Word, PDF Format Download!
15+ Letters of Recommendation for Graduate School - PDF, DOC13+ Employee Reference Letters - Samples, Examples
10+ Sample Retirement Resignation Letters14+ Free Thank You Letter To Teacher - PDF | Word | Apple Pages | Google Docs
54+ Simple Cover Letter Templates - PDF, DOC15+ Business Letter of Intent - Word, PDF
19+ Service Termination Letter Templates - PDF, DOC19+ Guarantee Letter Templates
50+ Simple Resignation Letters7+ Sample Rent Increase Letters
12+ Letter of Recommendation for Student Templates - MS Word | Apple Pages | Google Docs6+ Bonus Award Letter Templates in PDF
2+ Merit and Bonus Letters Templates in PDF | MS Word15+ Sample Landlord Reference Letter Templates
6+ Audit Findings Letter Templates in PDF | MS Word15+ Audit Confirmation Letter Templates in MS Word | PDF
10+ Audit Engagement Letter Templates in PDF | MS Word13+ Recruitment Letter Templates in PDF | MS Word
8+ College Recruiting Letter Templates in PDF | MS Word14+ Sample Director Resignation Letters
12+ Employee Appointment Letter Templates5+ Logistics Cover Letter Templates in PDF | MS Word
28+ Letterhead Templates - PDF, Word, AI, EPS12+ Sample Rental Reference Letter Templates in Word | Google Docs | Apple Pages | PDF
Offer Letter Templates - 17+ Word, PDF Documents Download!11+ Internship Offer Letter Templates - PDF, DOC
10+ Department Transfer Letter Templates - DOC, PDF7+ Sample Income Verification Letters
11+ Termination of Services Letter - Word, PDF Documents Download!13+ Sample HR Job Application Letters
15+ Church Resignation Letter Templates16+ Promotion Recommendation Letters
16+ Simple Appointment Letters13+ Medical Leave Letters
33+ Job Application Letter Templates in Word14+ Certificate Letter Templates - PDF, DOC
12+ Sample Medical Resignation Letters in PDF | MS Word | Apple Pages | Google Docs8+ Sample Reference Letter for Teacher Templates
32+ Formal Letter Templates - PDF, DOC12+ Tenant Warning Letter Templates
10+ Thank You Letter to Recruiter - PDF, DOC18+ Formal Request Letter Templates
11+ Auditor Appointment Letter Templates - Word, PDF30+ Recommendation Letter Templates - PDF, DOC
7+ Early Retirement Resignation Letter Templates in PDF | Word10+ Payment Request Letter Templates - PDF
12+ Sample Business Rejection Letters11+ Job Application Letters for Doctor - PDF, DOC
14+ Sample Formal Rejection Letters14+ Resignation Letter Formats in MS Word | PDF | Google Docs | Apple Pages
11+ Sample Donation Request Letter Templates29+ Job Offer Letter Examples
47+ Resignation Letter Templates - Free Word, Excel, PDF, iPages19+ Sample Job Application Letters for Assistants - DOC, PDF
14+ Job Application Letters For HR21+ Letter of Recommendation for Student - PDF, DOC
11+ Part-Time Job Cover Letter Templates -Samples, Examples11+ Medical Letter Templates
13+ Loan Application Letter Templates14+ Sample Employment Letter of Intent Templates - PDF, DOC
Essential Guidelines When Writing A Promotion Application Letter12+ Real Estate Letter of Intent Templates - PDF, DOC
12+ Solicitation Letter Templates10+ Free Resignation Letter Templates Due to Pregnancy in Google Docs | Word | Outlook | Apple Pages | PDF | DOC
22+ Company Letterhead Templates - PSD, AI, Word10+ Sample Two Week Notice Resignation Letter Templates - Google Docs, MS Word, Apple Pages
Volunteer Thank You Letters - 13+ Free Sample, Example Format Download!7+ Sample Personal Reasons Resignation Letters in PDF | Word | Google Docs | Apple Pages
7+ Cover Letters For Internships21+ Appeal Letter Examples
10+ Consultant Offer Letter Templates12+ Employees Write-Up Templates - Word, PDF
18+ Sample Friendly Letter Formats14+ Volunteer Reference Letter Templates - PDF, DOC, Apple Pages, Google Docs
14+ Employee Verification Letters12+ Counter Offer Letter Templates
13+ College Application Letter Templates17+ Legal Letter Templates
10+ Job Application Letter for Students - PDF, DOC13+ Tenant Letter Templates in MS Word , Google Docs , Apple Pages , Outlook , PDF
Reference Letter Templates - 29+ Word, PDF Documents Download!10+ Performance Warning Letter Templates
8+ Membership Application Letters10+ Free Relocation Resignation Letters in PDF | Word | Apple Pages | Google Docs
25+ Transfer Letter Samples14+ Contract Offer Letter Templates
13+ Sample Director Appointment Letters38+ Payment Letter Templates
29+ Sample Free Letter of Intent Templates - PDF, WordComplaint Letter - 37+ Free Word, PDF Format Download!
10+ Writing Templates MS Word 2010 Format Free Download9+ Trainee Appointment Letters
bottom banner