How to write a letter regarding the renewal of a contract

Updated February 17, 2017

Each time a contract is about to expire, employers must notify their employees or vendors in writing. If you would like to renew the contract, you may include a copy of the new contract or set up a meeting to discuss the new terms. If you are not going to renew the contract, you should tell the other parties in the letter and briefly explain why you are not renewing with them. Contract letters can require a lot of planning and preparation.

Insert company letterhead into your printer. This letter is an official communication about a contract, so you should use your company stationery.

Type the full date, and skip a line space.

Type the name of the recipient, her company, and the company's address. Do this even if the recipient is an employee who works for you. If you are denying the renewal of a contract, the matter might go to court, so it is important to make the letter appear as professional as possible. Skip an additional line space.

Open the letter by typing "Dear Mr./Ms. (Name)" followed by a colon. Skip a line space.

Begin the first paragraph by directly stating whether or not you wish to renew the contract. If you wish to renew, either refer to the attached contract and give instructions for returning it, or give the recipient information about what she needs to do to contact you to negotiate a new contract.

If you are not renewing the contract, thank the recipient for her time and interest. Give brief details about why the contract will not be renewed. Then give her the relevant information she will need to reapply later, if applicable, or to appeal the decision.

Add a paragraph to thank the recipient for her time and provide your contact information in case she has additional questions. Skip a line space.

Type "Sincerely," and skip three line spaces. Type your name. Print the letter and sign above your typed name.

Make copies of the letter and keep one for your records. If you are not renewing the contract, provide another copy for your lawyer in case the matter goes to court. Mail the original letter via certified mail. Certified mail has a tracking number you can check to be sure the letter arrived at its destination. If you want proof that the addressee signed for the letter, ask for a return receipt and you will receive a postcard with her signature.

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About the Author

Natalie Smith is a technical writing professor specializing in medical writing localization and food writing. Her work has been published in technical journals, on several prominent cooking and nutrition websites, as well as books and conference proceedings. Smith has won two international research awards for her scholarship in intercultural medical writing, and holds a PhD in technical communication and rhetoric.