An agreement termination letter is a notice given for canceling or ending a contract. It is a formal and legally binding declaration of your intention to end or terminate all relations with another party. A contract termination agreement makes clear to a third-party, with whom you previously had an agreement, that you will no longer maintain that agreement. It is possible that the business agreed upon by the two parties might have run its course or there may be irreconcilable differences between the two associates, making it hard to continue contracting. In any case, a termination letter will have to be written to start the process for termination of the agreement. This is true for all agreements and contracts.
Suppose you have placed an order with a particular supplier for certain goods or services, but over time you realize that the supplier is not faithful to the terms of the contract, you will feel the need to cancel that agreement. Or your priorities may have shifted and your objectives may have changed which is why you no longer need their services. Whatever may be the reason, sending a termination agreement keeps everyone informed of the cancellation of the contract. An agreement termination letter acts as evidence that you followed dues process and notified the other party about the termination and the end date.
In the professional setting, if an employer feels dissatisfied with the way someone is delivering on a contract the company will sometimes issue an employee termination letter. This letter must be issued in complete compliance with the rules of the contract signed by the employee at the time of induction.
When it comes to real estate, just how there are legal formalities and paperwork that has to be submitter before getting an apartment or property, there is similar paperwork that a tenant is expected to submit before leaving a property. If you intend to relocate to another location, the first step is to let your present landlord know that you are planning on vacating the premises. This may be done by writing a lease termination agreement. The idea is to give your landlord enough time so that they can find someone else to occupy the premises. This lease termination letter will help as a reference in the event of a dispute. While submitting a termination of rental agreement, it will be a good idea to include a copy of your original rental agreement letter, just for reference.
When it comes to the termination letter format, remember to use a business letter format and try to keep the tone professional and to the point. The termination agreement template given below will give you an idea about how this letter can be written. To avoid any misunderstandings state the reasons for terminating the agreement clearly. In the letter, it would help if you communicate plainly, that you are following the stated agreement guidelines and provisions for contract cancellation. It is always important to state when you would like the service to end and request for a confirmation of the agreement cancellation. In the case of mutual agreement termination, you can express gratitude by thanking the counter party for their service and wish them well for the future.
Check out our updated agreement termination samples and templates for the different practical applications of these letters..