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Contract Cancellation Letter

Contract Cancellation Letter

Are you unhappy with a service or in a position where you can't continue with a certain contract? A contract cancellation letter would serve your purpose. Read the article to know how to draft such letters.
Sheeba Nambiar
A contract cancellation letter is written with an intent of informing a service provider about your decision of canceling the contract or any such contractual services and informing about not requiring the service in future. It could be any kind of contract -- an insurance policy, a magazine subscription, a cable facility or any other service.

The format of a cancellation letter mostly remains the same, with only the content of the letter changing. The only possible variable factor in a cancellation letter is the content of the letter which varies depending on the contract or policy type.

Contract Cancellation Template

Given below is a template that could help you to understand the essentials that need to be mentioned in a cancellation letter for a contract.

Your Name
Contact Details


Name of the Recipient
Contact Details



While writing letters such as for a contract cancellation, one must directly point out the issue or the reason for writing the letter. Put your request forward to cancel the contract and explain in detail the reason of cancellation. Although, it is not mandatory to highlight the reason of cancellation, it could be helpful for the company to understand the reasons why the customers are terminating or canceling the contract.

If your reason for canceling the contract is influenced by a better offer available elsewhere, then do mention the name of the company offering the service. This is, so that the company that you are canceling the contract with does not convince or bother you in future to continue with their service.

Mention the registration number/account number so that the reader can identify you along with the other details pertaining to your contract.

Request them to acknowledge and accept the cancellation by either sending a written acceptance/confirmation letter or through an e-mail.

Yours Sincerely,


Your Full Name

Note.- The format used for the above-mentioned template can be used as a general format to draft any type of cancellation letter.

Cancellation Letter Sample

Given below is a sample letter for delivery cancellation.

Winston Collins
1234 Brooke Street,
Arlington, TX 74015

November 27, 2012

Mr. Tim Walters
Vice President
Chris Delivery Service,
25 South Street,
Addison Town, TX 76000

Subject: Cancellation of delivery service


I am writing this letter to confirm that as of Thursday, i.e., Nov 29, 2012, I would no more require the help of Chris Delivery Service. Your services have always pleased me, and hence I wish that we part on good terms. I have planned to employ another delivery service, as they are located closer to my office and their delivery service is quicker and prompter in the mornings.

Please consider this letter as a confirmation from my end that I wouldn't be in a position to continue my services with you come this Thursday. My account number is 00223344.

Please send me an acceptance reply to my e-mail ID acknowledging the contract termination. You are free to contact me in case of any other issue(s) in this regard. Wish you the very best in your future endeavors.

Yours Sincerely,


Winston Collins

Writing Etiquette

While drafting a letter, one must use letter writing etiquette applicable to business writing. It is important to avoid informal terms, and even if you are not satisfied with the services, using abusive language is strictly forbidden. Be polite and courteous while explaining your concerns and complaints. Doing this would ensure that the issue will not unnecessarily prolong and you can expect a prompt response to your request. Here is some more advice in this regard.

✓ Try to maintain a professional tone and be very specific while drafting a contract cancellation letter.
✓ Specify a reason(s) for canceling the contract.
✓ It is required that you mention the precise date on which you would like the service to come to a halt.
✓ Assure the company that you are following the contract's guidelines to the core.
✓ Lastly, remember to express your thanks to them and wish them well. It's possible that you may require their services in the time to come.

You must always notify the other party of your decision to end a contract, even though you may have irreconcilable issues. Do not stop the payment abruptly. That's the professional way to address a contract termination.