What Is a Sample of a Bad News Contract Termination Letter?


Quick Answer

Bad news letters convey negative information clearly and decisively while also portraying the author in a positive light in order to preserve future relationships. These letters are used to terminate contracts or other business relationships with employees and vendors.

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Full Answer

When writing a bad news termination letter, the author should carefully consider how to convey the termination message without creating a negative impression. The letter may begin with a positive statement that validates the relationship but then offers the negative news. Bad news should be clearly and briefly stated along with any necessary actions the recipient must take, such as payment to close the account or arrangements to receive a severance benefit. Finally, the letter should close professionally. The focus of the letter should stay on the needs of business operations and avoid personal accusations or criticism.

Termination letters provide legal notification of the end of a contract and protect the author. Using a termination letter helps maintain a professional tone in business relationships, allows the contract to end clearly under specific terms and makes those terms clear to all by putting them writing. Whenever the contract is ended as expected, sending a positive termination letter politely notifies the other party and may encourage future business.

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