Cancellation Letter & it’s Format with Free Sample Template

​Cancellation letter or Email is issued to cancel any written agreement / contract you are in with the other party. Letter of cancellation is a formal way to communicate to the other party that you are cancelling the contract/agreement/subscription or any other written commitment or terms and condition that you earlier agreed upon. Letter of Cancellation is written for various different reasons but its primary objectives is to notify the other party that we are not willing to continue the relationship or agreement and documenting the cancellation for all legal purposes. it is good to mention the reasons for cancellation for better understanding and further communication. We have added few cancellation letter sample templates at the end for learning and better understanding about how to write a cancellation letter to cancel the order. 

Cancellation Letter Format:

A letter of cancellation comes in a business letter category and must follow the standard.  A well-written cancellation letter format typically includes:

1. Header / Sender's Information

Your information such as name, address, contact information and phone number should be mentioned

2. Date

Date of Writing the Letter

3. Recipient Information

Recipient information such as name, title, company name, address, city, state should be included

4. Salutation

The letter should be started with formal greeting and refer

5. Add Subject Line

There should be a clear subject in short to me mentioned e.g. “Cancellation of Contract / service agreement” or whatever you are cancelling

6. Opening Paragraph with Details of Agreement

Clearly mention Contract number, dates, agreement terms and the intention to cancel the contract and the reason for cancellation

7. Reason for Cancellation:

Mention the reasons for cancellation, details the clause/points and also brief about the expectation you had

8. Request for confirmation

Request a written Confirmation of receipt of cancellation letter and contract cancellation

9. Closing paragraph

Thanks for their assistance and understanding. In case of any other instruction it should be mentioned here

The tone / language of cancellation letter must be polite & firm but professionalism must be maintained throughout. Please refer to the sample template to learn more about format and its writing.

How to Write Cancellation Letter or Email?

• Note down the date, the organization’s name and contact information and use right cancellation letter format while writing such an important letter. 
• While writing a letter of cancellation letter to a customer, it should be politely written and looks neutral. A notice period is effective before a cancellation order is effective.
• When writing a cancellation letter to a company, it should be informed that they are no longer have any permission with any activity related to your account (e.g. withdrawal of payments, any other services.)
• A written confirmation mail should be received regarding the status of the cancellation order.
• Mention clearly the legal steps (judicial action) that would be taken if there is misuse after the notice period of cancellation order is over.
• The letter of cancellation should be printed on good quality of paper. Also a handwritten signature, with sender address and contact number should be taken.

Cancellation Letter Types & Reasons

There are various different types conditions where a cancellation letter is written depending upon the situation, such as:

• To Cancel Service Agreements: Cancellation letter is mandatory to cancel the order or to terminate any services such as internet subscriptions, phone contracts, or utility services Agreements etc.
• To Cancel an Agreement /Contracts: Letter of cancellation is important in case of Canceling employment agreements/Appointment letter, leases agreement, partnerships deed, or contracts for any purchases.
• To Cancel any kind of Subscriptions: The Letter is required to send for Cancelling magazine subscriptions, club memberships, or recurring donations.
• To Cancel Any Booked Reservations: It is required to write letter to cancel the order of any kinds or to Cancel hotel bookings, flight reservations, event registrations, or for any such appointments etc.

The letter of cancellation should not to lengthy but all the details such as account numbers, contract dates and reasons for cancellation should be mentioned to understand the cancellation

Common Reasons for Writing Cancellation Letter:

Some of the common reasons are mentioned below which may have triggered to write a cancellation letter:

• Financial Reasons: In case of Inability to continue paying for the service because of unforeseen financial situations.
• Service Related Issues or Customer Dissatisfaction: Where you found Poor service related issues for quality of service, not meeting expectations, any unethical or unfair trade practices, or customer dissatisfaction with the product/service etc.
• Personal / Individual Reasons: At the time of any such Changes in personal circumstances, immediate relocation, or sudden health related issues.
• Compliance / Legal Obligations: Letter of cancellation is important, in case you found any breach of contract, violation of any contract clause or for any non-performance related issues.

Cancellation Letter & its Legal Reference

A cancellation letter is used for legal reference and therefore must be in a formal business letter format and the reason for cancellation must be clearly mentioned to avoid any misinterpretation. Especially in Contract Agreement, this letter is going to be used as reference to end of legal binding and may specify any legal consequences of cancellation like penalties, refund and any other obligation after cancellation. The letter plays a crucial role therefore one should maintain a polite and friendly tone throughout the letter

At last, a well-written and a good cancellation letter format plays a vital role in cancelling agreements/contract legally and also help in maintaining relationships.

Find Below Cancellation Letter Sample Template available for free download in Doc & PDF

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