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Free contract termination letter template (Word)

A letter ending a contract with a client, vendor or supplier: it identifies the contract and the termination clause, terminates for convenience or for cause with the breach and cure notice, sets the effective date and notice period, and covers final payment, return of materials, surviving terms and reserved rights.

No sign-up. Your answers stay in your browser. Who it is for: Businesses and freelancers ending a service, supply or consulting contract, whether as the client or the provider.

Updated · Word (.docx) · Free to use and adapt

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What is in the contract termination letter

  • Recipient and the contract being ended
  • For convenience, or for cause with the breach and cure notice
  • Termination clause relied on
  • Effective date and notice period
  • Optional final payment or invoice terms
  • Optional return or destruction of materials
  • Surviving terms and reservation of rights
  • Contact for questions
First page of the free contract termination letter template for Word

Read the full template

This is the complete wording. [Labels] are filled in from your answers, and highlighted text only appears when it applies; hover over it to see when.

[Letter date]

[Recipient name]

[Recipient address]

Re: Termination of [Contract name] dated [Contract date]

Dear [Recipient contact name],

We are writing to terminate the [Contract name] between [Sender company] and [Recipient name] dated [Contract date] (the "Contract") for cause, under [Termination clause reference] of the Contract. [Breach description] We gave you written notice of this breach on [Breach notice date], and it has not been fixed within the cure period the Contract allows.We are writing to give notice that [Sender company] is terminating the [Contract name] between us dated [Contract date] (the "Contract"), as [Termination clause reference] of the Contract allows.

The termination takes effect on [Termination effective date], which is [Notice period days] days after the date of this letter, as the Contract requires. Until then, both of us will continue to perform the Contract as usual, except as our rights allow.

[Final payment terms]

By [Materials return date], please return or securely destroy our confidential information and materials, including [Materials description], and confirm in writing that you have done so. We will do the same for yours.

The provisions of the Contract that are meant to survive termination, such as confidentiality, payment of amounts already due and limits on liability, remain in effect. This letter does not waive any of our rights or remedies under the Contract or the law, all of which are reserved.

Please direct any questions to [Sender contact name] at [Sender contact email].

Sincerely,

[Sender signatory]

[Sender signatory title], [Sender company]

The questions you answer

Clausery turns the template into a short questionnaire. Optional parts only appear when they apply.

QuestionTypeAsked when
Letter dateDateAlways
Recipient nameShort textAlways
Recipient addressLong textAlways
Contract nameShort textAlways
Contract dateDateAlways
Recipient contact nameShort textAlways
Is for causeYes / noAlways
Sender companyShort textAlways
Termination clause referenceShort textAlways
Breach descriptionLong textIf “Is for cause” is yes
Cure period givenYes / noIf “Is for cause” is yes
Breach notice dateDateIf “Is for cause” is yes and “Cure period given” is yes
Termination effective dateDateAlways
Has notice periodYes / noAlways
Notice period daysNumberIf “Has notice period” is yes
Has final paymentYes / noAlways
Final payment termsLong textIf “Has final payment” is yes
Include materials returnYes / noAlways
Materials return dateDateIf “Include materials return” is yes
Materials descriptionLong textIf “Include materials return” is yes
Sender contact nameShort textAlways
Sender contact emailEmailAlways
Sender signatoryShort textAlways
Sender signatory titleShort textAlways

How to use it

  1. Open it

    Click Fill it in now. The template opens in Clausery with its questionnaire ready.

  2. Answer the questions

    Work through the sections. Drafts save as you type, on your device.

  3. Download the document

    Get a finished Word file with your formatting intact, or print it to PDF.

Prefer to start from your own wording? Download the Word file, edit it, keep the {tags}, and upload it to Clausery. See the template syntax.

Questions

How do I terminate a contract by letter?

Check the contract's termination clause first: it says who can end it, the notice period, and how notice must be given. Then send a letter that names the contract, the clause, the effective date and what happens next.

What is the difference between termination for cause and for convenience?

For cause means ending the contract because the other side breached it, usually after a chance to fix it. For convenience means ending it without a reason, as the contract allows, usually on notice.

How should I send the letter?

However the contract's notices clause requires, often by email and post or courier to a named address. Keep proof of when it was sent.

Is it really free?

Yes. The download is free, and filling it in with the Clausery app is free too, with unlimited documents. Library templates never count towards a plan limit, and no account or card is needed.

Is my information uploaded anywhere?

No. Clausery runs entirely in your browser. Your answers and the finished document are created and stored on your own device.

Is this legal advice?

No. These are general samples. Laws differ between countries and states, so have the wording reviewed for your situation before you rely on it.

Guide: How to terminate a contract: notice, cause and the letter

Free tool: Deadline calculator: the date a 30-day notice period ends

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This template is a general sample and not legal advice. Laws vary by jurisdiction; have it reviewed before use.