A Contract Cancellation letter is written by one of the party in the contract to the other in order to cancel the contract. The letter should mention the contract details and also the reason why the party wants to discontinue the contract. A sample contract cancellation letter is given here under:

Sample Contract Cancellation Letter:

The Manager,

Yorkshire, London

2nd June 2014

Ref: Contract Cancellation Letter

Dear Sir,

This is with ref. to the contract number 768979070/80880 that our company entered with yours on 12th of March, 2014, according to which ABC Limited had to supply stationary items to PQR Limited for period of one year. For initial three months you have supplied stationary items and it was up to the mark and as per the standard we required. But the recent lot of stationary items which we received is sub standard and also not as per the list provided. I have also registered so many complaints regarding the matter through various emails and letters (copies enclosed) but we have received no response from your end.

So our company has decided to cancel the contract due to bad response from your end and supplying substandard stationary items. And also as per the terms of condition of contract we will pay only 75 % of the agreed prices for the last lot.

I have enclosed contract cancellation document for your perusal mentioning the above said reasons. Please sign the document and send us back. In case of any query, you can call us on 68970970.


Linda Joseph

Inventory Manager

PQR Limited.