How to Write a Letter of Intent to End a Contract

A contract is an agreement between two or more people or institutions enforceable by law. Generally it states one party will or will not do something to or for the other party. Letters of intent are meant to give fair warning and ample time for all parties involved to digest events as they unfold during the course of the contract---such as non-performance by one of the parties. Examples would be a contract between a landlord and tenant or a baseball player and baseball team.

Instructions

Construct the letter

1. Date the letter and begin with a warm greeting. As an example, "Dear Bill, I hope this note finds you well."

2. Describe the circumstances that lead the parties to enter into the original agreement. Use exact dates when you can. List all terms of the initial agreement. Pretend a baseball player has agreed not to ride his motorcycle at all during the whole term of his four year contract, which is now three years from expiring. You could continue writing, "I would like to remind you that, you agreed in your contract not to ride your motorcycle for any reason for the duration of your contract with our organization."

3. Clearly explain why and how the relationship has changed. Perhaps one party has failed to follow through on agreed-upon terms. Illustrate how these changes have brought about the need to end the contract and state that you intend to do so. The baseball example ends this way: "It has come to my attention that last week you rode your motorcycle around our practice complex for at least half an hour where several fans snapped photos with you while you rode along. This is in clear breach of our agreement and I intend to cancel our contract together."

4. Include your signature at the bottom of the page. "Best of Luck, C.W. Conrad."

5. Mail the letter to all the appropriate people, which will include the person you directed the letter at, your lawyer and his lawyer.

Tips & Warnings

• Always keep this type of correspondence for your records.