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A Contract Termination Letter is a crucial document used to formally communicate the decision to terminate a contract and initiate any “off-boarding” processes. Contract Termination Letters create a record that you notified the other party about the cancellation of the contract, providing proof in case of any future disputes.
Contract Termination Letters are often direct, brief and formal, stating the decision to end the contract, the effective end date, and terms of termination. In the case of a breach of contract, details about the breach and any remedies offered may be included.
Regardless of the reason for termination, it's important to draft a clear and concise Contract Termination Letter to protect your rights and interests.
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,
| Re: |
Dated:
Dear :Dear :
This is to notify you that I we have elected to terminate the "" agreement with you. Termination will be effective as of , in accordance with the terms and provisions of the contract.. The termination of this agreement is a result of your failure to meet the obligations under the terms of the contract and your subsequent failure to remedy the default. In accordance with the terms of our agreement, you were required to You were sent a notice on that you were in default. That notice provided you with days in which to cure the default. that you had until to cure the default. You have failed to resolve the problem within that time. You are hereby put on notice that our obligation to you has been terminated and you are no longer due any further performance on our agreement.
Sincerely,
____________________________
Notice of Contract Termination Checklist
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___Sign this document. This document needs to be signed by:
It is recommended that the notice be delivered or sent by certified mail so that you can prove that received the notice.
___Everyone gets a copy. Anyone named in the document should receive a copy of the signed document.
Important Details
A copy of the letter should be kept in your files.
You should also keep a copy of all other correspondence to and from the other party and maintain a written summary of all telephone conversations.
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Before deciding to terminate a contract, make sure to read the agreement carefully to determine whether you can terminate the existing contract. Afterward, determine whether there is a set end date for the agreement and if there are any associated early termination fees. Once you confirm these details, you may proceed to give a formal declaration from you to the other party that you plan to cancel your contract by sending a Contract Termination Letter.
Making a Contract Termination Letter is simple. Just answer a few questions and Rocket Lawyer will build your document for you. Consider these questions beforehand to make the process speedier:
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A Contract Termination Letter can serve as a courtesy to thank others for their services and preserve the relationship for the future. That said, when terminating a contract, be wary of being too polite because it might make the message you are sending unclear, which could potentially expose you to legal liability. To avoid this, make sure that the language you are using is easy to understand and clearly conveys the message that you are trying to get across.
Contracts can be terminated for a number of reasons. Popular reasons include an inability to pay, one party's failure to perform its obligations, an "act of God," or an expired time limit. If you have questions about ending a contract, ask a lawyer.
