Ending a business relationship | sample letter

A letter terminating a business relationship must clearly inform the reader of your decision. If it is possible, start the letter with a positive remark and then proceed to explain the reasons that have forced you to terminate the business contract.

Use polite language and keep the letter short.

Ending a business relationship - sample letter

Your Street Address
City, Postal code
Email: Phone:

Name of the recipient
Title
Name of the company
Street Address
City, Postal Code

March 4, 2012

Dear (Recipient name):

There has been a sharp increase in the price of the raw materials we purchase from your company during is past year. Since we have not increased the price of your products, this has started digging into our profits. Needless to say, we are forced to look or another supplier. We are already in talks with few firms and some of them have expressed their interest in filling our needs at a lower price. Therefore, we are terminating our current contract with you with immediate effect.

As you know, we operate in the highly competitive smartphone market and need to keep costs as low as possible. We will always appreciate the cordial relationship we have shared with your company.

We wish you continued success.

Yours sincerely

Signature

Your name

Sincerely,

Handwritten signature

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