Notice of Contract Termination document if:

• You want to notify a party to a contract that the contract is being terminated and to provide the date of termination.

Sometimes things just don’t work out. Whether you’re dissatisfied with the way someone is delivering on a contract or you no longer need their services, sending a Notice of Contract Termination makes it clear to everyone that the contract has been cancelled.

You can maintain better relationships down the line if everything is explicit. A Notice of Contract Termination is a formal declaration from you to another party that you plan to cancel your contract. The Notice contains the terms under which you are permitted to terminate the agreement. It also states when the contract ends. A Notice of Contract Termination creates a record that you notified the other party about the cancellation and the end date. That way you’ll have proof if the other party claims something different down the road. That said, not all agreements end on bad terms. A Notice of Contract Termination can also serve as a courtesy to thank others for their services and preserve the relationship for the future.

Agreement termination notice procedure
Use a termination clause. Many types of long-term and automatically renewing contracts have a termination clause. This gives you the steps you need to take if you want to terminate the contract. A common termination clause says that the person who wants out of the contract must notify the others involved of his intent to do so. This must be in writing and within a certain number of days from when they want to end the contract or when it will be automatically renewed.

Argue the contract is impossible. If you are unable to perform your obligations due to some impossibility, you may have a legal right to terminate the contract. You cannot be unable to fulfill the contract because of circumstances you caused yourself. It must be either the fault of the other person involved. It can also be the result of an act of nature, such as a hurricane or tornado.

Claim a frustration of purpose. Frustration of purpose occurs when the reason behind entering a contract goes away. To be able to terminate a contract based on frustration of purpose, the purpose of the contract must be known by all parties involved.

Identify a failure of condition. If one party fails to fulfill his end of a contract, that lack of performance may allow the second party to terminate his end of a contract.

Negotiate a termination. If you know you want to terminate a contract, contact the other person involved in the contract. Attempt to negotiate an end to the contract. You and the others involved can cancel the contract by mutual agreement at any time. You may want to offer some compromise by offering to pay some type of cancellation fee, returning funds received as a result of the contract, or offering to continue the contract for a few more months. Be sure to put any new arrangement reached in writing and have both parties sign it.

Claim breach of contract. If the person you are in the contract with knowingly fails to keep the terms of the contract, you may terminate your end of the contract. The person who broke the contract has no right to complain that you ended the contract. Since she breached the contract, they have no say in whether or not you terminate the contract.