Vendor Termination Letters

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These samples are provided to ensure you correctly understand and have an idea of how to write a Vendor Termination Letter. These samples provide a well-organized format for writing a letter terminating your contract with a vendor. 

Sample 1: Vendor Termination Letters

Here is a well-structured template format to illustrate and guide you on how to write a Vendor Termination Letter. Note how the reason for the contract termination is explained. 

Suggested Subject: Termination of Contract for Non-compliance to Terms

To Whom it May Concern, 

In continuation of our warning letter sent on the [date warning letter was sent] to address the [recipient of the letter]

We listed our concerns and complaints and our action if those complaints didn’t meet a resolution. The time allowed for remediation has since elapsed, and as a result, we are effectively terminating the contract between us as of [Date of termination].

All outstanding invoices will be processed within the next 7 days. If you have any questions, please reach out. 

Kind Regards, 
Name and Position.

Sample 2: Vendor Termination

This is another format for writing a Vendor Termination letter. Just as in the first template,  It also contains the reason for the termination and the date the termination is to be effective.

Suggested Subject: Termination of Services

RE: Formal Termination of Contract

We are writing to inform you that we will no longer require your services as we’ve decided to go with another distributor.

[State reason for cancellation]

As stated in the contract, we’re offering a two-week notice period. As such, this termination will come into effect on [Date]. All outstanding payments will be handled within 7 days of termination.

Kind Regards, 
Name and Position. 

Sample 3: Vendor Termination

This email is a formal notice to a vendor informing them of the termination of their contract due to poor performance.

Suggested Subject: Notice of Termination of Vendor Contract

Dear [Vendor Name],

I regret to inform you that we have decided to terminate our contract with your company effective [termination date]. This decision was reached after carefully considering and evaluating your performance, which has consistently fallen short of our expectations.

We appreciate the services you have rendered to our company thus far, and we wish you all the best in your future endeavors.

Sincerely,
[Your Name]

Sample 4: Vendor Termination

This email is a formal notice to a vendor informing them of the immediate termination of their contract due to repeated breaches.

Suggested Subject: Contract Termination Notice – Breach of Contract


Dear [Vendor Name],

We are writing to inform you that we are terminating our contract with your company effective immediately. This decision was made after we discovered that you have breached the terms of the contract on several occasions, including failing to deliver goods and services on time and delivering defective products.
We regret any inconvenience this may cause, but we must take this action to protect our business interests.

Sincerely,
[Your Name]

Sample 5: Vendor Termination

This email is a formal notice to a vendor informing them of the termination of their contract due to a business restructuring that no longer requires their services. The email assures the vendor that any outstanding obligations and commitments will be honored.

Suggested Subject: Contract Termination Due to Business Restructuring

Dear [Vendor Name],

We are writing to inform you that we will no longer require your services due to recent business restructuring. This decision was not made lightly, but it is necessary to streamline our operations and focus on our core business.

We appreciate your services to our company and the partnership we have shared. We will fulfill all outstanding obligations and honor any commitments made before the termination date.

Sincerely,
[Your Name]

Updated on December 22, 2023

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