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TERMINATION OF AGREEMENT

WHAT IS A LETTER OF TERMINATION OF AN AGREEMENT?

A Termination Letter for termination of an agreement is used by a party to let the other party know that they want to terminate the agreement before expiry of term of the agreement.


A party might need to terminate an agreement before expiry of its term for several reasons including a breach by the other party, or shutting down a particular activity/business. The parties can also wish to terminate an arrangement by mutual agreement if it's not working
out for any reason.


This document should only be used to end and cancel an agreement before its expiry.

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HOW TO USE THIS DOCUMENT

This letter includes information such as if there was a breach of the agreement, what is the nature of the breach and whether any notice

has been given to rectify the breach. It also can be used if the parties want to terminate the agreement in cases where there's no breach but parties mutually comply with end a contract.

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It also allows the party sending the letter to specify whether any amounts are due under the Agreement from any party

to the other and to specify the period of time within which the amounts should be paid. The letter allows the parties to acknowledge that no further amounts need to be paid or obligations undertaken post termination and acceptance of

the letter.

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Once this letter is completed with all of the relevant information, the party sending the letter can sign and send an original signed copy to the other party by certified mail. Using certified mail allows a party to possess a record that written notice of termination was sent in the event of any future dispute. The other party should then sign and confirm the terms of the letter.

 

While it may not be necessary in all cases for the receiving party to sign and confirm the terms of the letter (it would depend upon the terms and conditions laid out in the agreement between them) an acceptance by the other party creates a legally binding document on both parties.

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