Termination of Sales Contract Letter Sample

By | December 3, 2016

A sales contract termination letter is a simple document outlining when and why you intend to finish business relationships with an agency or vendor. This particular document is usually written in a letter format, detailing that the terms of a sales contract are no longer valid.

This type of letter does not have to be written in a negative manner. In fact, many organizations draw up contracts for a particular period of time, and when that time is over, the contract gets terminated automatically. The reason that no organization lets a sales contract go on forever is the fact that they might want to explore other avenues at a later stage. And this contractual time barriers frees them to obtain services from different (sometimes cheaper and better quality ones) vendors and suppliers at a later date, allowing them to compare services.

Terminating a sales contract is no issue – all you have to do it write a letter to the person who is directly doing business with you (usually a manager) and inform him or her of your decision to end the contract – or change vendors. If there is a problem in the liaison that you have created with him or her over the years, you can highlight that in the letter as well.

For your insight, here is a sample letter to terminate a sales contract:

 

Termination of Sales Contract Sample

 

Reeva Redford
Procurement Manager
The Energy Proficient Company
773 Stills Avenue
Spearfish, SD 19383
Tel: (222) 222-2222

December 3, 2016

Mr. Pierce Worthington
Supply Manager
Richmond Services
8872 Michigan Road
Spearfish, SD 57785

 

Dear Mr. Worthington:

This letter is with reference to the sales contract drawn up between Richmond Services and The Energy Proficient Company, on December 1, 2015. We would like to inform you that the tenure for this contract was 1 year from the day it was signed, which expired yesterday. Please note that we will not be renewing this contract this year due to some internal changes within the company, which have dictated that we now acquire services of a local vendor.

Over the last year, Richmond Services has provided our company with great services in terms of quality and delivery timeliness, and we are truly appreciative. If the above-mentioned structural changes had not transpired, we would undoubtedly have renewed this contract without question. Since I have been exceptionally satisfied with our business relationship in the past, I would like us to part on amicable terms.

Please feel free to contact me for any questions or concerns that you may have regarding the sales contract termination. We anticipate working with you soon.

 

Sincerely,

(Signature)
Reeva Redford
Procurement Manager
The Energy Proficient Company
773 Stills Avenue
Spearfish, SD 19383
Tel: (222) 222-2222