Breach of Contract Termination Letter

People who sign the contract are bound to fulfill the agreed upon terms and conditions of the contract. If anyone of the parties does not fulfill those terms, that party is considered to be in breach.

Breaching the contact is a very unprofessional attitude. It can cause serious damage to the financial health of the other party.

The other party has a right to consult law agencies to enforce the terms and conditions of the contract for the compensation of the loss.

The other party has to send a termination letter to the party who has breached the contract. The termination of the contract letter should clearly state that how the recipient of the letter is not fulfilling the terms of the contract.

The losses faced by the injured party due to a breach of contract should also be mentioned in the contract termination letter.

What is a breach of contract termination letter?

It is a letter which is a formal declaration of ending the business relationship with the other party that signed the agreement first after accepting all the terms and then started to breach it. Since this letter is written to cancel the business relation, it should be written in a polite tone.

Key elements of contract termination letter:

  1. Names and contact details of the party that breached the contract.
  2. The foundation on which you have decided to terminate the contract.
  3. Issues faced by you because of contract breach. Make sure that the issues are mentioned in the letter in terms of monetary loss.
  4. Dates of termination.
  5. Other information which is important to be mentioned in the letter.

The contract termination letters are sometimes very important just to ensure that both the parties in the contract are being treated fairly.

Letter body:

This letter is being written to confirm that [COMPANY NAME] is terminating the sale and purchase contract dates 28th August 2018. According to contract, your company was to complete the project by the end of previous month. However, you could not do so.

Please contact me as soon as possible to get the necessary details about the termination of the contract. I will pursue all the legal actions.


Breach of contract termination letter

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