Sample Letter of Cancellation of Business Contract

Jeanne Grunert
Cancelled Stamp

Breaking up is hard to do. That's true in life, and sometimes in business as well. Particularly if you aren't in the habit of canceling business contracts, knowing what to say-and what not to say-can feel a little daunting. It's helpful to have a guide to follow that you can easily adapt to suit your own particular situation. A letter to cancel a business contract is similar to a letter of request, but what you are requesting is to end to an agreement.

Sample Cancellation Letters

To make your next contract cancellation easier, utilize one of the sample letters provided here. They are free, professionally written, and may be modified to meet your individual needs. Simply click the image of the letter that most closely meets your needs to open the file, then edit the information to personalize it to your particular situation.

Use the toolbar commands to save and print when you are ready. The LoveToKnow logo will not appear on the printed copy. If you need help downloading the letters, check out these helpful tips.

Writing Tips for Cancellation Letters

The goal of writing a cancellation letter is to make a clear and succinct request, with no room for misinterpretation.

Content and Tone

Keep the tone of a cancellation letter professional and neutral. This isn't the time to send a long complaint letter to the company even if the reason for your cancellation is poor service, although saying a few words about the cancellation reason is useful.

Keep it simple, straightforward and to the point. State clearly that you are canceling your contract and include a simple reason why. If you owe any money on the account, request a final bill or enclose the payment.

Letter Format

Cancellation letters should be printed in black ink on an 8 ½ x 11 piece of paper or business letterhead. Use a 12 point font, the standard size for easily readable type, and choose a simple font such as Arial or Times New Roman. These are standard business fonts.

There are several ways to format a business letter, but one of the easiest methods is the block format. In this format, you single space the entire letter, leaving approximately 6-8 lines between your return address and the business address to whom the letter is addressed. Double space, type your salutation, double space, and begin.

Other Things to Note

Don't tear up or get rid of your original contract, no matter how tempting it may be. Retain the original contract and save copies of the cancellation letter and any correspondence in a folder.

Even after the company confirms cancellation, retain the records for at least several months in case they make a mistake and bill you or open the contract again. You'll need records to prove the date of cancellation. It's also good to send your letter via certified mail. It costs a bit extra, but you receive a signed card back in the mail proving that your letter was received.

Read the Contract Before Canceling

Always read your contract carefully before sending a cancellation letter. Some contracts have provisions under which you may or may not be able to cancel. For example, a contract may cover a certain period of time and allow early cancellation only if you experience poor service. In that instance, you certainly don't want to write something like, "Although your service has been excellent..."

If there is a legitimate service issue, state it concisely, and cite the portion of the agreement that allows you to cancel under those circumstances. Otherwise, it's best not to elaborate.

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Sample Letter of Cancellation of Business Contract