Notice of Cancellation Letter Template

You must have heard about the “notice of cancellation letter” many times. But what does it mean? It is a formal written document businesses use to request the termination of existing agreements, contracts, or subscriptions. A well-curated letter can help them conclude a relationship efficiently and professionally, whether a membership, product order, or service.

The notice of cancellation letter must explicitly express your decision to cancel and state the reasons. Adhering to the appropriate format and etiquette is crucial to prevent misunderstandings and potential legal ramifications. 

This article will outline the steps for crafting a proficient message and furnish you with a cancellation letter template to assist you in initiating the process. It can allow you to customize the message according to your own needs. 

Writing a notice of cancellation letter can be tough. You need to be clear but still kind. You might cancel a membership, subscription, or business contract. It could also be for a big event like a wedding. Please follow the correct steps to get the tone right in your letter, irrespective of why you’re canceling.

Cancelling a Membership or a Subscription

Follow the formal business format when writing your letter.

This style adds professionalism to your letter. Use a computer and a word processing program to compose it, and choose a clear 12-point font for readability. The formal contract cancellation letter template includes a specific heading at the top, which is:

Your Name

Subscription number (if applicable)

Your address, including the city’s name, state or territory’s abbreviation, and the US ZIP code

The date you wrote or sent the letter in the MM/DD/YYYY format.

Membership or Subscription Company Name

Company’s address, including the city’s name, state or territory’s abbreviation, and the US ZIP code

Clearly state the membership or subscription you want to cancel.

Begin the letter with “Dear [Subscription or Vendor Company Name]” and then specify the name or type of membership or subscription you are canceling. Include all the significant details in the sample cancellation letter template upfront to ensure the recipient understands the purpose of your message.

For example, you may write:

Dear FS Magazine,

Please cancel my monthly magazine membership at the end of this pay period. My account number is 12345678.

Give a short reason for canceling. In one brief sentence, explain why you’re canceling the membership or subscription. You don’t have to go into a lot of detail, just give a quick explanation for the cancellation.

For example,

I opt to cancel my subscription to your B2B magazine because of tighter finances.

Ask for confirmation of the cancellation.

Also, request a receipt to ensure that your membership or subscription has been successfully canceled, assuring you that the cancellation process is complete.

If there is a cancellation fee for the membership or subscription, please enclose the payment for the fee in the notice of cancellation letter or message. Kindly ask for the reimbursement to be issued by check if there are any outstanding funds owed to you, like a refund for a canceled membership before its expiration.

For example,

Please confirm the cancellation of my membership by return mail. I have enclosed the fee for the cancellation of my membership.

• Conclude the letter with “Sincerely” or “Best”, then print it out.
• Sign it by hand and mail it to the membership or subscription company’s address.
• Send it via Certified Mail to have a stamped proof of the date and time you sent it.

The completed notice of cancellation letter will say:

Dear Lifestyle Living Magazine,

Please terminate my monthly magazine subscription after this payment cycle. My account number is 12345678. I would like to discontinue this membership because of budget cut-offs. Kindly acknowledge this termination letter by replying to my email or mail. Also, please find attached the cancellation charges with taxes.

Yours faithfully,

James Hanson

Cancelling a Business Contract

Express your decision to cancel. Start by addressing the recipient, “Dear [Contract Company Name or Contact].” You can state your decision to cancel upfront, ensuring the recipient understands the purpose of your letter.

Provide a concise reason for the cancellation. Even as you terminate the contract, it’s important to uphold a professional and friendly tone. Clearly state the reason for canceling and express the desire to part on good terms. Maintaining a positive business relationship is valuable for future collaboration with the contractor.

For example:

I’ve been satisfied with our previous business dealings, and I aim for an amicable parting. I’ve chosen to opt for another party supply service because of their competitive rates and extended operating hours.

Include any remaining payments for services.

If there are outstanding payments owed to the contract company, enclose a check with the notice of cancellation letter envelope specifying the exact amount. Also, include payment for that fee if there is a cancellation fee associated with the contract.

For instance,

Enclosed, please find a check for the last payment of our contract: $148.61

Ask for confirmation of the cancellation. Also, request the recipient to reply by mail to confirm the contract’s termination. Ensure to mention the contract’s expiry date and clarify that the letter serves as notice for the non-renewal of the contract.

For instance, you could state:

My agreement with Celebration Crafts concludes on MM/DD/YYYY. Consider this letter as my notification not to extend the contract for the approaching calendar year.

Conclude with a friendly tone.

Always end contract cancellation letters on a friendly note to keep the door open for future collaboration with the contract company. Remember to sign the letter by hand as well.

Dear ABC Inc.,

I’m writing to let you know that I won’t be needing your services anymore, starting next Monday [MM/DD/YYYY]. I have been very thrilled about our past dealings and hope we can part on good terms. Our operations manager has decided to go with another party supply service because they have better prices and longer operating hours.

You can find the check attached to this letter. We are clearing our dues and you can cash the check at the earliest convenience. To clear any doubts, contact me on xxxx xxxx.

Yours faithfully,
James Hanson
[Add your signature here]

Save a copy of the letter for yourself. Duplicate the letter for your records before mailing it via the USPS. Use high-priority services to send the letter, ensuring you get stamped proof of the date and time the recipient received it.

Only include copies of receipts or documents with the notice of policy cancellation letter. Try keeping the original receipts or documents for your records.

 Also Read: Non Profit Fundraising Letters

Please take care of these things:

Search the Termination Causes

Several contracts contain provisions outlining the termination process for the involved parties. If your contract includes such clauses, exiting it can be straightforward: ascertain whether the termination terms are relevant to your situation and notify the other parties accordingly.

Failing to cancel a contract appropriately can lead to substantial fees and an undesired legal dispute.

Identify Any Contract Breaches

Terminating a contract is typically possible if one of the involved parties has neglected their specified responsibilities. Identifying and substantiating a breach of contract empowers you to end the agreement.

It is advisable to seek legal assistance to safeguard your interests and ensure precision in this process before using a letter of cancellation template to write the message.

Claim the Performance Impossibilities

If it becomes impractical for you to fulfill your contractual obligations, you may consider asserting contractual impossibility. However, this is not typically advised, as you would need to demonstrate that the impossible conditions are a result of the other party’s actions or a force majeure event.

State the Reason for Your Frustration

Each contract has a specific purpose, and if that purpose becomes obsolete or frustrated, you have the option to terminate the contract. For instance, in a scenario where you rented out your house for overseas work, but unforeseen social upheaval compels your return home, you may terminate the lease.

Negotiate With Vendors or Partners

Consider addressing your concerns in the cancellation letter template through open communication. Clearly state to your partners the reasons behind your desire to exit the contract, and they might be willing to accommodate your request. You could enhance the appeal by proposing incentives, such as a cancellation fee, to make the arrangement more favorable.

Write the Notice of Cancellation Letter

Drafting a notice of cancellation letter enables you to provide formal written notice of canceling the contract. This letter explicitly communicates your intent and helps mitigate liability, which is essential for avoiding complications during the termination process.

You can send the letter via Certified Mail to get proof of mailing and delivery. It lets you store records and ensure the message falls into the right hands only.

 Also Read: Credit Dispute Letter Template

You can use a sample cancellation letter template to send contract-end messages. Here is one you can consider as a reference.

[Your name]

[Your street address]
[City name, state abbreviation, and ZIP code]

Date: __________

To,

[Recipient’s name]

[Their mailing address]
[City name, state abbreviation, and ZIP code]

Subject: Notice of cancellation letter

Dear [Recipient’s name]

[Start with an introductory sentence, following up with something you have already discussed with the recipient. You can also ask them how they are doing if you have a personal connection with them. State the reason for canceling the contract without beating around the bush. Also, provide details about the agreement you intend to stop.]

[The second paragraph should throw more light on the issue. Describe why you want to terminate the agreement in detail. Keep the note light and formal.]

[Close the letter on a good note. Ask the recipient to reach out to you if they have any questions or queries. Also, ensure them that you will help them transition to a different vendor.]

[Closing sentence]

Yours sincerely,
[Your name and designation with the signature]

Here is a sample of the contract cancellation letter template for your staff’s reference:

Dear Ms. Ivy,

It’s been a while since we last spoke on call. I hope you are doing well. I wanted to inform you that our purchase manager has decided to terminate our contract #82552A with your brand. We hope to end our relationship on a good note.

We are trying to scale down our operations for the next two quarters, leading us to cut purchases. Also, we have a lot of budgeting modifications coming up. Hence, we are still considering which vendor we will proceed with after we resume our purchases.

Having said that, we would always consider your company before others for buying our materials because we know you provide the best quality.

Please allow us some time to sort out our internal matters and fix our budgeting limits. You can call me anytime if you want to discuss something or have any concerns.

Thank you.

Regards,
Halley Bower, Senior Executive- Purchase
XYZ Company

This sample can help you maintain emotional connections while expressing your message.

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