Business Letter to Cancel Contract

By | February 6, 2016

Sample letter to contractor for cancellation of contract due to shortage and lack of investment or business partner problems.

Sample Letter to Cancel Contract

Dear Sir,

It is apprised that my company signed a contract with your department for named provision of 10 feet high boundary wall along with 3 feet high concertina wire and barbed wire. Sir it was a great honour for me and even it would be much satisfying if I could complete it upto the required standards and specifications. But it very painful for me to inform you that I have met a sudden financial crises due to my partner who has fled abroad taking all the money and savings of our business with him. Due to this unforeseen situation now I have nothing in my hands to invest in this project. Sir, it therefore requested that the project in question may kindly be cancelled. Moreover the security money deposited against this contract with your department may also be returned to me so that I can strive to survive again. Sir it will be a great favour for me from your side.

Thanking you in anticipation.

M/S Shahid Ent

Letter to Cancel the Contract


Dear Stephen Builders,

It is apprised that the contract agreement named construction of 06 H type houses was concluded between our department and your firm in last week. As you know our office has already issued you a work order to start the work. I am feeling very sorry to inform you that this project has been held due to some financial implications. Moreover it is felt that it may take a lot of time to revise the project or to take a decision. Therefore higher authorities have issued written orders to cancel the contract agreement. You are requested to keep your hopes alive for early decision and it is also expected from your side that you will quote your rates in the forthcoming bids. Once again it expected that you will not create ill feelings about our department due to cancellation of the deal.

Yours sincerely,

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