Contract Termination Letter (Non-renewal)

Lawyers within our network have agreed to share some of the documents they regularly use in the course of their practice along with annotations explaining different provisions and outlining decisions you might need to make. You can contact our lawyers and download a copy of this document.

Wondering how to write a contract termination letter? The best way is to start with our free contract termination letter template. In general, this contract termination letter template is meant to help business owners avoid an automatic renewal of a contract by communicating to a counterparty that the current agreement governing your business relationship will terminate at the expiration date of the current agreement.

A lawyer is available for free consultations through Priori to discuss this document and much more.

VIA [[CERTIFIED RETURN RECEIPT MAIL]/[FEDEX]]
[Counterparty Company Name]
[Address]
[Address]
[Address]
[Attention: Responsible Party]

Dear [Responsible Party],

[[I am writing to inform you that]/[This letter serves as confirmation that] ] [Company Name] is not renewing the [Agreement Name], dated [Agreement Date]. [Reason for non-renewal.]

Under Section [__] , [Agreement Name] expires on [Expiration Date] but automatically renews unless cancelled at least [Required Time Period for Cancellation] before [Expiration Date]. This letter serves as timely notification that [Company] has decided not to renew [Agreement Name]. Accordingly, [Agreement Name] will terminate on [Expiration Date]. [Unless I hear otherwise from you, I will assume that you acknowledge this notice of termination.]

[Please indicate your acknowledgement and receipt of this notice by executing and returning a photocopy of this notice.] Please don’t hesitate to contact me if you have any questions or wish to discuss this matter. We have enjoyed working with [Counterparty Company] and hope to find a way to do so again in the future.

[Name]
[Title at Company]

[Acknowledged and Received]:

_______________
[Responsible Party]
[Title at Counterparty Company]

Many contracts include terms that specify the timing for proper termination of the agreement for non-renewal. A lawyer can help determine this timing and address any resulting termination issues, if any.

It is helpful to have proof that the notice of termination was sent and received, in order to avoid future allegations that no notice was sent. You may also wish to fax the notice. Having a lawyer send the notice on your behalf will provide an added layer of proof that the notice was in fact sent.

In some contractual relationships, it may make sense to communicate the termination in person or via phone before sending the formal contract termination letter. If you take this option, the letter remains crucial but can be styled as a "confirmation" in order to acknowledge the prior conversation.

Note: If you are terminating for any other reason than non-renewal, please see [INSERT LINK TO BREACH FORM].

Typically, there is no contractual obligation to provide a reason for non-renewal. However, if it is in fact required, or if for any reason you wish to specify why you are not renewing, then a lawyer can help you accomplish your communication goals while simultaneously protecting your rights and position under the contract.

Non-renewal letters often reference the section that specifies the terms for automatic renewal and the timing for terminating in advance of automatic renewal.

Note: some contracts specify requirements for acceptable delivery and acknowledgment of notifications (including notifications of non-renewal). A lawyer can help you understand and comply with these requirements.

Disclaimer This form is a sample that has been prepared for general informational purposes only. Nothing contained in the form is legal advice, nor does it create an attorney-client relationship with either the drafting attorney or Priori Legal. You are encouraged to seek your own legal counsel to review the form, customize it for your business and obtain advice on its general applicability prior to use.