Not all contracts go smoothly. For example, you may be having irreconcilable issues with a service provider or the services being offered are no longer useful to you. In this case, you may notify the other party of your intent to terminate the agreement by sending a contract cancellation letter. This is the professional way to handle a contract termination. Do not simply stop payment. Give the service provider the courtesy of a formal letter that states your intent to cancel the contract and explain the reason.
Write your name and address at the top of the contract cancellation letter. The service provider or business may have many clients and it is important that your clearly identify yourself.
Indicate the date of your letter. This should be the date you plan to send the letter, not the date the contract will be cancelled. This letter should be sent at least several days before the contract will be officially cancelled, but give as much notice as you can.
Address the service provider by name in the greeting, such as "Dear Mr. Parker." A company may have many sales representatives and you want your cancellation letter to be sent to the one you've done business with.
Write the body of the letter. A contract cancellation letter only needs to be about one paragraph as a general rule. Start the letter by thanking the other party. State that the contract will be cancelled on a specific date. Include your name, their name, and the specific date; for example: "The service agreement between my company, Company X, and yours, Company Y, will officially end on June 4, 2011." Refer to the clause of the original contract that allows you to cancel, if applicable, and state your reason for cancelling.
Add your contact information, including a phone number and e-mail address, and let the service provider know that you can be contacted with any questions or concerns about the contract cancellation.
End the letter with a formal closing such as "Sincerely," your signature, and your typed name.