Here is a sample vendor termination letter. It should be written in formal business style and sent by certified mail, so the sender has proof of the time and date the letter was received.
This may be required if the vendor insists the terms of the contract have been violated and consequently demands extra payment. The sender should keep a copy of the letter to have a record of the transaction.
Vendor Termination Letter Sample
564 12th Street
Laurel, MD, 20005
February 17, 2019
ABC Water Company
345 Cherry Road
Baltimore, MD, 30089
I’m writing this letter to formally inform you that the contract Jam Company has with you to supply 10 cases of bottled water per week will expire on March 1st. We will not renew the contract. According to the contract, we may cancel at any time before the expiration of the contract.
Our company no longer requires bottled drinking water because we have invested in a water filter and can provide pure drinking water to our customers at lower cost. We will accept the regular shipment until the expiration date. You can send the last invoice as usual at the end of the current month, and we will pay it immediately.
I would like to express gratitude on behalf of Jam Company for the prompt and satisfactory service you have given over the past five years we have been receiving bottled water from you. I would be happy to personally give a positive testimonial to your good service and product.
If you have any questions, please call me at 555-123-4567 or reach me at firstname.lastname@example.org. We wish you all the best for your future concerns.