Contracts start as a meeting of the minds. As described, it is where parties come into a common understanding into forming a contract with one another. It’s here that terms, conditions, rights, and duties are discussed and agreed upon. For some reason, one of the contracting parties may act contrary to what was agreed upon, which breaks the trust and good faith that you’ve exercised during the course of forming the contract. Such actions render the contract invalid and result in its eventual termination.

What is a Contractor Termination Letter

A Contractor Termination Letter is a formal letter that expresses intent to terminate any agreement and business relationship with an independent contractor. The intention of termination of such a contract may be derived from a variety of reasons most notably from not honoring the terms and conditions stipulated in the contract.

Contractor Termination Letter Samples

Contractor Termination Letters are a type of termination letter which terminates a contract made between you and the Contracting firm. Below are Contractor Termination Letters Samples which you can use as a reference if ever you arrive in a situation where you have to write such a letter in the future.

General Contractor Termination Letter

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General Contractor Letter of Termination

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Letter of Termination General Contractor

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Contractor Business Contract Termination Letter

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Contractor Termination Letter of Business Contract

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Contractor Letter of Business Contract Termination

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Reasons for Terminating a Contract between your Contractor

A contract is a written agreement whereby the agreeing parties come into a mutual decision to agree upon the terms, conditions, rights, and duties of the contract. The legality of such agreement is determined by the delivery and compliance of the agreeing parties to the terms and conditions stipulated in the contract. Termination of the contract happens when one of the contracting parties fail to comply with the stipulations that they previously agreed upon.

In this particular situation, a business may terminate a contract between its contractors for reasons such as Breach of Contract, Failure to Perform, and Fraud. These three not only disrespects the stipulations in the contract but also the duty of good faith the business owner has given toward the contractor.

1. Breach of Contract: Breach of Contract is described as the act of doing something contrary to what was agreed upon in the contract. In this case, breaches may mean failure to deliver the services according to the specified quality in the agreement. Such failure may negatively impact the business operation of the aggrieved party.

2. Failure to Perform: Failure to perform happens when of both or either parties fail to fulfill the obligations and duties agreed in the contract. For example, when the Contractor fails to render services such as repairs and renovation, as previously agreed, renders the contract null and void, thus, terminated.

3. Fraud: Fraud is defined as the deliberate act of dishonesty where one party deceives another for personal and financial gain. With that said, when the Contractor intentionally defrauds his client by way of giving less to gain more, that alone is an outright violation of the client’s duty of good faith. Good faith is the foundation of contracts, and breaking such is a ground for its termination.

How to Write a Contractor Termination Letter

Say, that your Contractor violated your trust and duty of good faith, for example, and you decided to terminate any business relations with them. Expressing your disappointment and intention to cut business ties with your contractor should be done calmly and professionally. To do that, here are the steps on how to write a Contractor Termination Letter.

Step 1. Gather all the Evidence of Violations by the Contractor

Before writing your letter, you must first gather all the evidence about the violations made by the Contractor. Gather all the documents such as reports and purchase receipts and photographs from the site. Cross-reference them and list down any irregularities that you find. Doing so enables you to accurately enumerate all the violations in the contract in your letter.

Step 2. Address the Letter Directly to the Boss

Your letter should be addressed directly to the Boss of the Contracting Firm. In that way, the message in your letter will get the attention that it needs and in turn, receive a response from the head. Addressing your letter directly to the Boss of the Contracting Firm enables them to address any faults in their staff and equipment, especially if they’re the cause behind the contract’s termination.

Step 3. Express your Disappointment Calmy and Professionally

A Contractor Termination Letter is a formal letter. That means that, although you’re deeply disappointed with your Contractor, you must be able to express it calmly and professionally. When writing your letter, use words that show respect for the recipient at the same time writing it in a neutral tone. Doing so tell them that nothing is personal, its just purely business.

Step 4. Keep your Letter Brief and Concise

Formal letters like your Contractor Termination Letter should be written briefly and concisely. By doing so, it allows your recipient to immediately read and understand the message that you want to convey and express. It also avoids any miscommunication between you and your contractor, which may flare up into tensions that will negatively affect both of your businesses in the future.

Step 5. Don’t Forget to Say Thanks

Despite the disappointment that you felt for your contractor, expressing your gratitude for the service that they’ve rendered to you is the most formal and gracious way of cutting your ties with them. In expressing your thanks, tell them that it has been an honor doing business with them and it is to your utmost regret to sever your ties with them. This way, it enables you and your contractor to part ways without harboring any ill-feelings at the same time maintain a good business relationship between both of you.

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