Business Agreement Termination Letter

A letter of termination informs about the discontinuation of a service. Termination letters are of several types. A Business Agreement Termination Letter is used to inform an organization that its contract has been terminated. Certain reasons such as discrepancies in the services or faulty products may lead to termination of the agreement or contract. It is obligatory for the business organization to inform the other about the termination of the agreement in writing instead of informing it verbally.

The writer should script the letter very politely, irrespective of the reason for which the business agreement is being terminated. This shall be helpful in maintaining the relationship for future purposes. The matter of concern must be reported in detail to the receiver for his or her clear understanding of the same. The Business Agreement Termination Letter should be concluded on a positive note by wishing the reader success for future.

Business Agreement Termination Letter – Sample

The following is the sample of a Business Agreement Termination Letter.


Bryan Mundy

Managing Director,

Martin and Steve Pipeline Hydraulics Ltd.,

200 Lonsdale Road,

Toronto, ON M4V 1W6,




A. N.  Stewart,

Chief Executive Officer,

PLL Pipelay Supply Services,

362 Mariposa Ave,

Rockcliffe Park, ON K1M 0T3,


Subject: Termination of Business Agreement

Dear Mr. A. N. Stewart,

I, on behalf of Martin and Steve Pipeline Hydraulics Ltd., am writing to inform you that the agreement signed with your respective organization, PLL Pipelay Supply Services, on May 28, 2017, has been terminated by the management of our organization.

The failure to provide good quality pipelines for our subsea project has lead to the violation of the terms of the contract. The quality of the products delivered to us is inconsistent with the standards and, therefore, it cannot be put to use in the project. Your organization has been known for the quality of its products and services; however, the faulty products provided to us has been disappointing. This has also caused a delay in our project. We request you to kindly arrange for pick up facility as soon as possible so that we can ship back the pipelines to you. We also request you to return to us the payment that has been made to you for the consignment.

We hope that you shall not do so with any other organization in future. We wish you success for your business in future.

Thanking you.


Bryan Mundy

Managing Director,

Martin and Steve Pipeline Hydraulics Ltd.

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