Contract Termination

Use this Contract Termination Template when you need to end a business contract but want to keep things friendly.

[Company letterhead]


[Recipient's Name and Address]

Subject: Termination of Business Contract

Dear [Recipient's Name],

We regret to inform you that we have made the difficult decision to terminate our business contract with [Recipient's Company Name]. This decision has not been taken lightly, and we understand the potential impact it may have on both our companies.

After thorough evaluation and consideration of various factors, including [briefly explain the reasons for termination, such as changes in business strategy, market conditions, or performance issues], we have concluded that it is in the best interest of our company to terminate our contractual agreement.

We want to express our sincere appreciation for the partnership and collaboration that we have shared throughout the duration of our business relationship. We value the contributions you have made towards our mutual success and acknowledge the efforts your company has made to fulfill its obligations under the contract.

In order to ensure a smooth transition, we are committed to working together during the termination process. We propose a mutually agreed-upon plan for winding down our business activities and resolving any outstanding matters. Our team will be available to discuss the necessary steps, address any questions or concerns you may have, and negotiate an amicable resolution.

We understand that this decision may impose significant challenges for your organization, and we genuinely regret any difficulties it may cause. It is our hope that we can mutually find suitable alternatives or explore opportunities for future collaboration in different capacities, if appropriate.

We kindly ask that you initiate the necessary actions to terminate any ongoing commitments or services as per the terms outlined in our contract. Furthermore, we appreciate your cooperation in settling any outstanding financial matters, including invoices or pending payments.

We genuinely value the positive working relationship we have established, and we would like to express our gratitude for the trust and confidence you have placed in our company. We sincerely wish you and your team success in all your future ventures.

Should you require any further clarification or wish to discuss this matter in detail, please do not hesitate to contact our representative, [Your contact person], at [Your contact details].

Thank you for your understanding and cooperation in this matter.


[Contact name]

[Company name]

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