When cancelling a contract agreement, one should look over the terms and conditions of the contract to review which circumstances are necessary for one-party and dual-party termination. One must draft a clear and concise letter stating the reasons for terminating the contract, setting a clear timeline, says the Law Dictionary.
One should write the termination letter based on the terms and conditions of the contract. While being respectful, the letter should make it clear that the business relationship is terminating by a specified time. Writers can name violations in a matter-of-fact manner without unnecessary vitriol, recommends the Law Dictionary. One should provide contact information at the end of the letter.
A better-case scenario involves a mutual termination of the contract, wherein both parties agree to dissolve the terms of the agreement. This method prevents lawsuits from occurring and also allows for future business relations with the other party, reports the Law Dictionary. The document should contain both party names, and a timeline or final date for the complete termination of contract. The documentation should contain specific references to the former contract, the clearly stated details of the mutual termination of the terms and conditions, and a release from contained binding agreements.