Service Contract Termination Letter

What is a service contract termination letter?

A service contract termination letter is a formal written notice issued by one party to another to end an existing service agreement. This notice helps to legally communicate the intent to terminate a contract under the terms outlined in the original agreement.

The parties involved in a termination notice of service contract template are the client and the service provider. Both parties could be individuals, self-employed, independent contractors, or businesses. A service provider is a person that provides professional services in exchange for remuneration and could be referred to in various ways, for instance, as a contractor, consultant, provider, etc.

Either party to the original contract can end it at any time. The present termination notice of service agreement can be used for termination of various types of service agreements, for instance:

• Professional services (translation, security, consulting, etc.)
• Marketing or advertising services;
• Cleaning or catering services;
• Repairing services, etc.

How to draft a service contract termination letter sample?

When drafting a service contract termination letter sample, it is crucial to include key details to ensure that a final document is legally enforceable and concise.

Neither federal nor state laws provide any specific format a termination notice or letter should have. Therefore, the parties are free to pick up their own style or format. In rare cases, an original service contract may even provide a sample letter to end contract of service in a contract’s attachments or exhibits.

Despite a letter’s format, inclusion of certain elements is essential. We created a short roadmap below to guide you through this process.

What to Include?

A termination notice of services sample should include:

• sender’s details (i.e., their full name, mailing address, contact phone, and email);
• recipient’s details;
• date of the letter;
• reference to the original contract that is terminated (name and date);
• clause of the original contract that allows termination;
• end date (i.e., a date on which the contract should end).

Inclusion of other provisions in the text of a letter might be mandatory in certain circumstances only. For instance, if a sender informs about an immediate termination, usually a material breach of a contract should take place. Therefore, it is recommended to provide a detailed reasoning behind the immediate termination.

It is also a good practice to title a letter as “service contract termination letter” so that it is clear from a letter’s subject what this letter is about.

How to Send?

Once a termination notice of services sample is drafted and signed by a sender, it should be delivered directly to the recipient. There are a number of ways how a termination notice could be sent:

• registered or certified mail (make sure to get a return receipt);
• courier service (make sure to get a signature confirmation upon receipt);
• email;
• in-person delivery (ask a recipient to issue a short written confirmation).

Before choosing either of the options above, the first step is to check the original services contract.

Most contracts provide the exact way how a service contract termination letter should be sent. If a contract defines one or a few particular ways of sending, a sender should use only those methods. If, for instance, a contract states that a notice should be sent via certified mail, and a sender uses email instead, an email notice cannot be considered as properly delivered. As a result, the contract cannot be terminated.

When to Send?

The timing in a termination notice of services template is crucial. The original service contract typically includes a notice period clause that defines how far in advance the termination letter must be sent.

An average notice period may vary from 7 to 30 days, depending on the duration of contractual relationships and the type of services provided. For instance, when it comes to more general services like repair and catering, a notice period might be longer. However, if services are closely connected to a service provider’s personality, like security or personal trainer services, in that case a notice period is usually shorter.

In rare circumstances a sender may omit a notice period. This is called an immediate termination of a contract that is possible in case of a material breach of a contract. The list of situations in which immediate termination is possible is usually defined in the text of an original contract. For example, if a service provider needs to have a valid license to render certain services, a client may have a right to immediately terminate a contract once a service provider loses such a license.

How to customize a termination notice of services at Faster Draft?

In order to personalize a letter’s template for your particular situation, follow a few easy steps below:

1. Click the button “Create Document.”
2. Answer simple questions in the questionnaire.
3. Select a document’s format—termination notice of services PDF or Word.
4. Make a payment.
5. Download, print, and use your customized legal template in seconds.