Contract termination letters are necessary in many vendor relationships with Contractors. If you are getting into a business relationship with a contractor it is important to write down how the end of the relationship will happen. This helps both parties know how much time to give and how the termination should be delivered. Contractors respect owners who pay their bills when they say they will and give the contractor notice if there are not funds available for their next project.  We hope this information helps you with your next contract termination and please burn as few bridges as possible.  You never know when you will need their help again.

Sample Contract Termination Letter

3/1/2010

Contractor Bob
Address
Phone
Fax
Website

Contractor Bob,

Thank you for your business. As mentioned in our agreement I would like to provide this 30 day notice to terminate our agreement on 4/1/2010. While we enjoy your work and appreciate all that you are doing, our funds are no longer available and we hope that we can work with you in the future.  At this time we would also like to schedule a meeting in two weeks to review our work together.

Since

rely,

Builder Joe

Address
Phone
Fax
Website

CC (send additional copies to other people or groups)

Contract Termination Letters

Contract termination letters should always include who is terminating with whom and when the termination is taking place. Sometimes it may be appropriate to mention why the termination is happening but normally it is just important to give notice and keep it simple to avoid any confusion or delays.

Business Contract Termination Letter

In most businesses like Contractors Warehouse we request a 30 written notice for any open account. This will let us know that you do not plan on continuing your relationship the way it currently is set up. You are welcome to email, fax, or mail the contract termination letter directly to us.

Vendor Contract Termination Letter

If you are working with a vendor it is important to let them know as soon as you can if you are planning on terminating your agreement. A 30 day notice is normal for most vendor contract termination letters.

Agreement Termination Letters

If you are working with a verbal agreement then it may be appropriate to have a verbal notice instead of a termination letter. We do not suggest this and we always suggest documenting the relationship so that if there are any questions about what was agreed upon it will be in writing and not just on a hand shake. Sometimes this is not possible or you may have an ongoing relationship with the vendor. In this case still give a termination notice verbally so there are no surprises.