A letter for termination of business contract is a formal document which is framed in the case when a party or person informs the other party or person involved in a business contract about its termination through a letter. These letters are legally implacable in nature and are formally drafted.

Sample letter for termination of business contract:


Greg Mathews

Managing director

Fred and Greg Company

T-6, first floor, Martin’s square


Date: 12th Oct 2012

Subject: letter for termination of business contract

Respected Mr. Mathews

I, Henry Jackson am writing this letter to inform you about the decision that I have taken on behalf of my company regarding the business contract that is signed between us .We had entered into a business contract as on 17th May 2012 which entitled my company to sell wooden furniture pieces to your store. As per the contract, my company was the ‘SELLER’ whereas your company had the title of the ‘BUYER’. The termination date of this contract is 17th May 2013 but due to certain payment problems, I wish to terminate this contract prematurely.

I wish to terminate the business contract based on the following given clauses of the business contract:

  • The contract shall terminate if the BUYER fails to make payment for goods purchased from SELLER within a month of deliver.
  • The SELLER holds the right to terminate the contract if the BUYER has made late payment three months consecutively.

I hope that you shall make the due payments as soon as you can and send us a written confirmation saying that you agree to the termination of the contract. We sincerely hope that you understand our reasons for terminating the contract and would respect our decision. My company is dedicated to its clients but beyond a point, we cannot conduct business with a client who fails to make the payments even after getting several requests and warnings.

Thanking you

Yours sincerely

Henry Jackson

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