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Things you need to know about Termination of Agreement Letter.


1. What is a Termination of Agreement Letter?

A Termination of Agreement Letter is a formal and written notification to the other party that you are terminating the agreement or contract you have with that party. It specifies the date the termination will be effective and may even state the reason why the agreement is being terminated.

There are no special legal requirements to send a Termination of Agreement Letter but it’s best to use a mode of service where you can trace whether it was received or not (i.e. via courier).  Further it’s advisable for you to save copies of the letter for yourself in case legal action is pursued later on.


2. When do you need a Termination of Agreement Letter?

A Termination of Agreement Letter is needed if you intend to terminate your agreement or contract with another party.  The letter serves as written notification of your clear intent to terminate the agreement. Be sure to check your agreement if it contains any procedure and/or requirement that must be satisfied before the agreement can be validly terminated. For example, certain agreements may require the termination letter to be sent within a certain period of time prior to the intended date of termination (i.e. thirty (30) days prior to the intended date of termination). If such procedure and/or requirements exist in your agreement, be sure to follow them.


3. How can a Termination of Agreement Letter protect you?

A Termination of Agreement Letter helps you by creating a record that you formally notified the other party about the termination of the agreement and when the termination will be effective. This is helpful if the other party later on disowns any knowledge of the termination, particularly if a case is filed in court.

The Termination of Agreement Letter can also help preserve the business relationship because the parties are upfront with each other about the termination. The letter also serves as an opportunity to cut the business relationship on good terms and with courtesy to the other party.


4. What information do you need to create the Termination of Agreement Letter?

To create your Termination of Agreement Letter you’ll need the following minimum information:

  1. The type of recipient (i.e. individual or corporation) as well as name and details (i.e. address, position within the corporation)
  2. The type of sender (i.e. individual or corporation) as well as name and details (i.e. address, position within the corporation)
  3. The details of the agreement to be terminated (i.e. title and date executed)
  4. When the termination will be effective

Related Documents.

Activities that involve a Termination of Agreement Letter sometimes use the following documents. You may be interested in them:

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