Sample Termination Letter Due to Breach of Contract

Terminating a contract is never easy, especially if it is due to a breach of agreement. If you are a business owner or manager, it is essential to have a strong termination letter to ensure that the party in violation is made aware of their wrongdoing. Here is a sample termination letter that you can use as a guide.

[Your Company Letterhead]


[Recipient name and address]

Dear [Recipient name],

This letter is to inform you that [Your Company] is terminating its contract with [Recipient name] due to the breach of the agreement between our companies. It has come to our attention that you have failed to meet the terms and conditions of the contract, specifically, [list the specific breaches].

These breaches have caused significant harm to our company, which cannot be rectified by any means. As a result, we have no choice but to terminate the contract effective immediately.

We understand that you may have put in effort and resources into the project, but we cannot tolerate a breach of the agreement under any circumstances. We expect you to comply with your obligations under the contract and take responsibility for the consequences of non-performance.

Please be advised that any outstanding and unpaid bills must be settled within [timeframe] from the date of this letter. Any failure to do so may necessitate legal action.

We regret that we had to take this action, but we hope that this serves as a reminder to you and your company that contracts are binding and must be honored. Further, we do not wish to conduct future business with parties who fail to meet their contractual obligations.

If you have any questions or concerns, please do not hesitate to contact us.


[Your name and position]

[Your Company]