A contract termination letter template is a formal document notification about terminating or canceling an agreement or an ongoing business relationship. It is an official declaration for ending all relationships with the other party. These services may exist between either employer and employee, two organizations or companies; marriage between individuals, or supplier and client. Writing a contract termination letter is official proof of the decision to terminate a contract. It becomes an official record station when and how the contract was terminated.
Reasons for Providing Termination Letter:
If one entity is dissatisfied with the services of another entity, or if they no longer require the services presented to them, the contact is likely to be terminated. Termination letters may be a way of ending contracts in disagreement or dissatisfaction, but not all contracts end in the same way. A contract termination letter may serve as a courtesy or thank you letter to the other party for their services; either way, one must maintain a professional and positive tone to maintain a conciliatory relationship between both parties for future development. In certain situations, one of the two parties may breach the contract for definite reasons; there is a possibility that the other entity might try to re-negotiate or make amendments to improve the situation to rectify disagreements between both parties.
Types of Contract Termination Letter:
• Employee Contract Termination Letter: This letter is given by an employer to an employee for their dismissal due to breach of contract. This letter includes everything related to the employee; for instance, the reason for their dismissal, last pay check, benefits, severance pay.
• Business Contract Termination Letter: This letter is written from one organization to the other stating breach of contract for sure reasons. This might be written after an agreement from both parties, mutual; or this could be a letter to one entity to the other. The reason might be due to lack of service or lack of responsibility.
• Marriage Contract Termination Letter: This letter is written when a marriage between two individuals doesn’t work out or one of the spouses terminates the contract before the expiry date. At the separation of the individuals, the letter must include everything related to them. For instance, their assets, properties, basically anything owned by both of them. In mistaken cases, individuals also try to take custody of the offspring shared between the parents. Everything is carried out by the rules and law followed in the country where the individuals live.
• Vendor Contract Termination Letter: Vendor contracts are legally binding documents that must be approved by the company before offering their services. These services might end if the company does not require them anymore, or if the goods supplying agents fall in short of supplies, or, for a certain reason, refuse to sell their goods anymore. In any of those cases, a vendor termination letter must be written stating all the reasons for termination and how long the services were kept between the supplier and the client.
resources.workable.com
