Letter to Cancel a Contract with Another Business

[Your letterhead, if desired; if not, your return address]

[Date of letter-month, day, and year]

[Recipient's first and last names]
[Company name]
[Street or P.O. box address]
[City, State ZIP code]

Dear [recipient's name]:

We have had a contract with your company for the past year. When our current 6-month contract period ends on June 30, 2010, we do not plan to renew this contract because of budget constraints and other logistics. Please contact us so that we can discuss the details of this transition.

We have enjoyed doing business with you and wish you the very best of success. Thank you for your diligent efforts and for handling the details involved in concluding this contract.

Sincerely,

[Signature]

[Sender's first and last names]