Contract Termination Letter (Breach)

Contract Termination Letter (Breach)


To be used to given formal written notice of termination of a contract where the other party has breached the terms of the contract.


You should consider the following:

  • Do you actually want to end the agreement – although the other party has breached the terms, can this be resolved without ending the agreement? What will the impact be on your business if you terminate the contract? Will customers be affected adversely? What will you do to ensure that customers don’t suffer a loss as a result?
  • What breach or breaches have occurred? – you will need to be specific as to what the other party has done to breach the contract.
  • What is the other party’s position? If they accept liability you may be able resolve the issue rather than terminating the agreement.
  • What does the contract say about termination?
  • In addition to the termination of the contract do you want to claim damages, compensation or anything else as a result of the breach? You should seek legal advice at this stage, remember litigation is expensive and risky, you may spend more on legal fees than you stand to recover, and if you lose, you may end up having to pay the other side’s costs etc.
  • Courts do not want parties to bring disputes to court, have you explored alternative dispute resolution?
  • If there has been no breach, you may wish to terminate the contract simply for convenience if possible. See Contract Termination Letter (Convenience)

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