Termination of Services Template
Termination of services letters can come in many forms and formats. It should be concise and to the point. Specify the remaining contract terms with which you will and will not be complying. But make sure you are correct in order to preserve any relationship (if desired). Responsible business owners can compose a well-written termination letter with as much professionalism as they ran their business. Options for language are given to assist the business owner in collecting thoughts to put into a complete termination letter.
- Check and double check any termination notices, clauses, etc. that might be in the service contract. Many times early termination comes with a fee or a specific day notice requirement (i.e., 30 days prior termination). If termination comes at the contract end, then there should not be any problem unless there is a specific notification period. Be sure to comply with that.
- Consult an attorney if you need to better understand your responsibilities under a signed contract. There can be serious implications in a breach of contract situation.
If there is a discrepancy or disagreement in a business relationship, start out nice. You can always get firmer as the issue develops. Remember the adage: it is better to be nice than right. It can apply in all aspects of life.
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[City, State Zip]
RE: Termination of Services
Dear [insert name]:
I am writing this letter to let you know that the contract between [insert name of sending company] and [insert name of receiving company] expires on [insert expiration date]. Due to various internal circumstances, the decision has been made to terminate services with [insert name of receiving company] upon expiration of the contract.
On behalf of [insert name of sending company], I would like to thank [insert name of receiving company] for years of high quality, dedicated service. Should our company reconsider the need for services from [insert name of receiving company], we will promptly contact the company to intitiate further discussions.
We wish [insert name of receiving company] all the best and please do not hesitate to contact us for reference for future contracts, as we have been very pleased with the services provided.
[name of person signing letter]
[title of person]
I am writing to inform you that I am officially terminating our contract. This termination is due to the inefficienies and lapses in services from your company.
I will not pay any termination fee as contemplated in the contract as you have not performed your duties and responsibilities correctly or in good faith (which is also required in the contract).
Please contact me to make arrangements for the return of your company and/or employees’ property.
After careful consideration of your matter, I have determined to end our professional relationship [or attorney-client relationship, accountant-client relationship, etc.] effective immediately. I recommend that you seek another [attorney, accountant, etc.] as soon as possible who can more effectively represent you. I will be more than happy to transfer your records as soon as you locate a new [attorney, accountant, etc.].
My decision comes after realizing that you are not providing me with accurate and complete information. Not only does your deception make it difficult for me to properly represent you, it also puts my practice at risk.
Once you have chosen another [attorney, accountant, etc.], I strongly urge you to be upfront and answer all questions completely.
If you need more details or further information regarding this process, please feel free to call my office at [insert phone number] or email me at [insert email address]. I wish you all the best in the future.
As per the conditions of our contract, please allow this letter to serve as a termination of such contract effective as of [insert effective date]. I believe you will find that this 30-day notice satisfies the legal constraints of the agreement and allows us to severe this contract without any further need for legal action.
I wanted you to know that we greatly appreciate your dedicated service for these past few years and harbor no ill feelings at all about [insert receiving company name]. Our business was recently purchased by a larger contracting firm and we will be getting our supplies through that firm’s vendors. I attempted to salvage the relationship with [insert receiving company name], but it was not possible.
Please note that all outstanding orders should be fulfilled as per individual order instructions. All outstanding invoices will be satisfied by [insert date], but we will not be generating any new purchase orders for your company going forward.
If you have any questions or need any further information about our discontinuation of services, you can contact me at [insert phone number] or email me at [insert email address]. I wish you all the best in the future.
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