Cancellation Letter of Contract: Different agreements and contracts are signed between many parties daily in organizational setups. Under certain circumstances, such agreements can also be terminated. Hence, it is essential to inform the other party about the same through a cancellation contract letter. Here, this action needs to be executed in a formal way. It is vital for anyone to communicate this message in a manner that is professional.
How to Write a Cancellation Letter of Contract
Given below represents the desired format of a letter written by an employer to his/her employee informing about the termination of the contract employment.
In the first paragraph of the body of the letter, it reflects the details about the actions taken on the employee. Here, employee means the name of the person working in the organization.
In the second paragraph, the reasons for actions, like termination needs to be cited.
In the third paragraph, it is necessary to list the implications and future actions that may have to be taken by both or either of the parties.
(Signature of the employer)
Such letters are normally written on official letterheads, and the date is essentially printed on the right-hand corner. Given below is another sample letter of contract termination. Here, it is written by the housekeeping contractor to the human resource manager of the company. The letter indicates that the contractor’s staff will be no longer working for the company.
Termination of Contract Clause
Wz-6432 King Street.
City of Industry, Louisiana-68973
4665 Semper Avenue
Astoria NJ 36565
Dear Edward Jennings,
John Hester informs Edward Jennings that John Hester’s company under the name A1 Housekeeping Services no longer intends to offer house-keeping services to ABC Global Solutions.
John Hester informs Edward Jennings that this decision to end this seven-year-long relationship with ABC Global Solutions has been made by the executives of John Hester’s company. This has been done after considering the feedback provided by the staff who are working at ABC Global Solutions. The staff seems to be unhappy with the working hours, and the treatment that they receive.
According to the contract clause, a three-month notice period is required to be provided by the party that initiates the termination of the contract. Hence, John Hester informs Edward Jennings that he would like the notice period to start today, the twelfth of December, 2019.
By the end of the notice period, John Hester will expect all the outstanding dues to be cleared by Edward Jennings's company.
(Signature of John Hester)
Designation: Manager of House Keeping Contracts