Acknowledgement of Termination of Contract
An acknowledgment of termination of contract is an important tool for ensuring that both parties are on the same page when it comes time for them to part ways.3 min read
An acknowledgment of termination of contract is an important tool for ensuring that both parties are on the same page when it comes time for them to part ways. Contracts can be terminated for any number of reasons or under any multitude of circumstances. It can be due to the terms of the contract being completed or because both parties want to end the relationship early.
Acknowledgement of Termination
Your acknowledgment of termination should contain some basic sections and components, including:
- A header stating it is a termination of the contract.
- The date.
- The basic purpose and date of the initial contract.
- A statement saying the contract has been terminated by mutual agreement.
- The termination effective date.
- A signature.
Sample Business Contract Sections
When creating a termination of mutual release agreement for the other party to agree to you will need to make sure it includes certain sections to make sure all of your bases are covered. Sections to include are:
- The basis for the termination: This section will indicate why the contract is being terminated such as for completion or a mutual agreement.
- Termination statement: This section is a statement saying the contract has been terminated and will no longer be in effect.
- Mutual release: This portion will state that both of the parties have agreed to the release and whether or not there were costs, damages, demands, claims, or buyback agreements in regards to the termination.
- Further assurance: In this section, both parties will agree to deliver, share, and file any documents or information that is necessary to complete the termination of the contract.
- Survival of prior transactions: This section will deal with previously completed transactions, if they will be in effect, and how long they can be dated back to.
- Governing law: This section will reiterate the fact that the agreement will be governed by the laws of the state in which it is signed in.
- Entire agreement: In this portion, you are stating that the above information covers the entire agreement between the two parties and that any other written or oral statements made before or after the signing will not modify the terms laid out above.
- Counterparts: This section states that the agreement can be executed in multiple parts which will still be considered originals for their purposes. This can include transmission my mail, email, fax, etc.
- Binding agreement: The agreement should close by stating that the agreement is binding and that both parties agree to the terms.
- Signatures: The end of the agreement should include the names of the signers, what companies they represent, and the date they are signing. There should also be witnesses or a notary signing as well.
The party who wants to terminate the original contract, agreement, or subscription should send a cancellation letter to the other party announcing their intent. You may decide to send a letter of cancellation for a number of reasons. In some cases the product or service may not meet with the expectations, the terms may not be being followed, or the product or service may no longer be useful.
Uses of Cancellation Letters
A letter of cancellation can be used to terminate or discontinue a number of services such as:
- Cable services.
- Online content.
- Mobile phones.
You may also write a cancellation letter in the event that you have an order for certain goods or services, but the other party is no longer able to complete the contract under the original terms. At that point, you can choose to cancel or revoke an order.
When creating your cancellation letter, it should be short and to the point. Use as few words as possible with as many details as necessary to properly explain yourself.
When Should You Write a Cancellation Letter?
While a well-written cancellation letter is the best way to cancel a business agreement and can be considered a professional courtesy to the other party, it is advisable to check with an attorney to ensure that you will not be held in breach of contract for canceling. You are expected to read your contract thoroughly before signing it so it is important to know the terms of cancellation.
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