Sample Letters of Cancellation of Business Contract

Mary Gormandy White
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.

4 Sample Contract Cancellation Letters

To make your next business 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. 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.

Example Cancellation of Service Letter to a Vendor

Do you need to terminate a business relationship with a vendor? This sample letter is a good option to choose for things like ending your business relationship with a service provider, such as a digital marketing agency or the company that cleans your offices each week.

Sample Service Contract Cancellation Letter

If you're looking to end a service contract with a supplier, such as copy machine maintenance or a landscaping service agreement, this sample letter will be easy to adjust to your specific situation.

Subscription or Membership Cancellation Letter

Is it time to cut the cord from your cable provider? Did you sign up for a membership that you no longer need? This letter is a good starting point to get the message across when your goal is to end the business relationship.

Cancellation Letter for an Insurance Policy

Do you need to cancel an insurance policy? Use this sample insurance cancellation letter as a starting point for providing the insurance company with written notification of cancellation.

Writing Tips for Cancellation Letters

The goal of writing a cancellation letter is to make a clear and succinct request for termination the business relationship between you and the company, 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

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.
  • 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.
  • Choose a simple font such as Arial or Times New Roman. These are standard business fonts.

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.

Sample Letters of Cancellation of Business Contract