A business contract termination letter refers to all those letters which a business party writes to another business entity terminating a certain business contract (before its expiry) that they must previously have signed. The letter conveys or confirms the details that the sender wishes for the receiver to know. A sample of such a letter has also been provided here.

Sample Business Contract Termination Letter


Mr. Jason Frankel

Frankel Cements Pvt. Ltd.

Lawrence, Kansas

United States of America.

25th May, 2012

Subject: Discussing the termination of a business contract.

Mr. Frankel

This letter is being written to you from Seth & Hegel Developers (PARTY 1). We have a number of business arrangements with your firm Frankel Cements Pvt. Ltd (PARTY 2).

By the way of this letter we would like to inform you that we wish to terminate the contract no- 36873 we signed regarding the cement supply for one of our projects.

The termination results in following terms/ situation:

  • The termination refers to only the particular contract. The other contracts we hold with your firm shall not be affected.
  • This termination is being called because the project has been postponed indefinitely.
  • The termination of this contract has no relation to any future alliance we may wish to form with the business entity.
  • The first advance paid in non- refundable as per the contract. Also no father payments will be made in this regard.

Kindly convey your response to the earliest.

Yours Sincerely


Mr. Mathew Hegel

Seth & Hegel Developers

Lawrence, Kansas,

United States of America.

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