Business transactions start and end with formal, polite, friendly, and professional documents. A trading arrangement between a service provider or vendor and a client, for example, concludes with a business service termination letter. Such a letter also goes by different names, like cancellation of services letter and dismissal of services letter. It acts as a notice used by both dependent and independent contractors to break off any legal binding. Learn more about such a document by reading this article.
Termination of services letter’s definition varies on how it is used. However, its purpose lies mainly in the discontinuing of any service. The law firm, Hellmuth & Johnson blog cited that contract participants have every right to terminate an arrangement. They also pointed out that creating and presenting termination letters, such as contract termination letters and employee termination letters, is a serious undertaking one has to make. Without scrutiny, presenters of the document may be prone to litigation. Hence, the said activities must be avoided as much as possible. Then again, there are cases when the actions are necessary. An excellent example of these instances takes the form of project closure. And, a termination of services letter is among the many addenda of a project closure report.
Even though all executive contracts have to be ended on a specific date, as stated in one of its stipulations, there are instances when the termination has to be done earlier than expected. These circumstances may be caused by performances, frauds, mistakes, and breaches. Performances, specifically the unfeasible ones, are big no-nos in a contract. Whatever excuse the service provider has, an impossible to complete contract is very much eligible to be terminated anytime.
On top of that, frauds are one of the reasons why a contract has to be terminated. As we all know, it is a criminal act and must not continue. And believe it or not, mistakes can be good grounds why a contract must conclude. But not just any mistakes, it is what businessmen call “mutual mistakes.” This circumstance is when an error occurs without any resolution discussed, making both parties at fault.
The last reasons to terminate a contract are breaches. If one party violates the agreement’s terms or conditions, then that transgression, alone, is enough for the other party to terminate the contract. To ensure that there will be no contract cancellation letters or cancellation notices on the parties’ tables, both of them must flick through the termination policies and procedures.
In concluding something, you get the same mixed feelings just as when you started it. These feelings have chances of affecting the tone of your formal letter writing or, simply, legal writing. Lucky for you, formal letters and formal business letters can work out regardless of what manner you will be using. This is because it follows a standard format that somehow neutralizes your style. Suit your termination of services letter to the standards by checking out our outline of the guidelines below.
Start your letter by stating what your purpose is. Doing so is very crucial because it immediately gives the recipient an idea of what the document is about and of what weight it should be given among the list of priorities.
Service agreement contracts, like lawn service contracts, HVAC contracts for services, janitorial services contracts, marketing services contracts, and many more, are complicated. Most of the time, service providers are the only ones who have in-depth knowledge of their contract stipulations. And with the other party left ignorant, complications may arise. Just as mentioned before, there are many special situations when these arrangements should be terminated. So to make your decision clear to the recipient, you have to cite all the reasons why you are ending the contract. Mentioning the items on your decision criteria also helps bridge any gap.
Provide the exact date of when the termination takes its effect. One good reason for doing so is for you to have enough time to retrieve the resources you have given to your client or contractor. Another point is to provide adequate time for the recipient to prepare necessary documents that you can submit during or after the termination becomes effective.
Every letter must have concluding remarks. Not only that, it finishes your letter the appropriate way, but it also gives slots for you to indicate additional requests or express gratitude.
Employee termination may take form in abandonment, retirement, forced end of a temporary appointment, death, and resignation.
Terminations for a cause refer to the untying of a business relationship between an employer and employee. These are usually for reasons that violate a stipulation or two in a contract.
Usually, termination of services letters is issued if an employee commits misconduct. Some of the reasons include contract breach, violence, harassment, and extreme insubordination.
Every move of a professional that relates to business corresponds to the production of a document. An example of this is the termination of services, either between a service provider and its client or between an employer with its employee. In this activity, youmust provide a formal letter explaining the very existence of termination of services letter.