A letter of cancellation is a letter written from one party to another indicating the termination of a deal, service, project, or an undergoing transaction.
Cancellation letters are usually served as information for an action that is to be performed in the future. A cancellation letter should not be a warning or threat but rather a fact that has an implementation force.
When is a Cancellation Letter Used?
Cancellation letters are usually formal and can be written from an individual to a company, organization to another, or from a company to an individual. Other than indicating the termination of service, deal, project, or an undergoing transaction, cancellation letters are also used in the following ways:
- To inform a service provider, company, or institution that the writer is not satisfied with their products and/or services and would like not to receive such products and/or services in the future
- To cancel membership or subscription to a product or service
- A cancellation letter can be used to show that an undergoing project or affiliation with a company was terminated and the reasons for such termination recorded in the cancellation letter
Types of Cancellation Letters
A cancellation letter is a document that formally informs a person or entity of the termination of a contractual agreement. It usually refers to an employment agreement, but it may also be used with other agreements, such as those involving business arrangements. A cancellation letter should include all pertinent information required by law and regulations regarding the termination of the agreement, including terms for the settlement of any agreements between the two parties. There are different types of cancellation letters, albeit serving the same purpose-cancellation; they are used in different instances, including:
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There are very many reasons to write a cancellation letter. Here are some different scenarios that may prompt the use of a cancellation letter:
Canceling a membership
Due to various reasons, one may wish to cancel their membership with a given company, organization, or institution. To cancel membership, clearly mention in the letter the reason for cancellation and make clear that such cancellations should be effected. Membership cancellation letters are usually very short and direct to the point.
Canceling a business contract
Business contracts are usually very sensitive and demand a lot of care and professionalism when canceling. Before writing a cancellation letter for a business contract, it is important to check if there are any clauses in the original agreement allowing for cancellations and how such cancellations will be affected.
How to Write a Cancellation Letter
There are various ways that one can use a cancellation letter to communicate their intent to cancel a service, deal, project, or an undergoing transaction. Regardless of the reason for cancellation, however, the best and the most effective way is to write a cancellation letter. By writing a cancellation letter, one makes it official in writing that their decision to discontinue is final and should be respected.
Here is how to write a cancellation letter
Specify the cancellation
A cancellation should be brief and direct to the point. The letter should have reference information, including the name/type of membership or subscription being canceled, the name, address, contact details or the sender, and that of the recipient. One should also include a reference number in the cancellation letter to make it easy to process the cancellation. When writing the letter, the first paragraph of the letter should specify the cancellation. The writer should be very specific on the type of service they are canceling, especially when they are being offered more than one product/service or have several subscriptions with an organization.
For example, one may write:
Dear XYZ Limited,
I am writing this cancellation letter to inform you that I would like to cancel my weekly subscription to the premium XYZ formula. My reference number is 6527GHT8276.
Provide a brief reason
Provide a reason for cancellation. Although not necessary, courtesy demands the writer to provide a brief reason, if any, for the cancellation. Providing a reason for cancellation will help the company/organization/individual know where and how to improve what they are offering and what to do to avoid such cancellations in the future.
For example:
Due to unprecedented circumstances, I won’t be able to make weekly payments for the subscription.
Include final payments
Before canceling, it is important to make any due payments to avoid inconveniencing either party. It is important to also pay the exact amount to avoid having over or underpayments of the accounts, which may lead to automatic renewals in the case of subscriptions. Also, check to see if there is any cancellation fee and make such payments on time.
For example, one may write:
I have made payments for all outstanding payments in the amount of $685. Please find attached a receipt for the same.
Request confirmation
It is important that when canceling a service, membership, deal, or any other form of affiliation, one requests to be given a confirmation affirming that the said affiliation has been canceled. The writer should request that an official correspondence be sent to them via certified mail to affirm that the cancellation is successful.
For example, one may write:
Please send an official receipt to my email 123@email.net showing that the subscription has officially been canceled.
NOTE: Although the tone used in the letter should be firm, being courteous can give one a better and timely response and also help maintain their relationship with the other party.
Sign and send
After making sure that all the information required is well captured and accurate, sign and send the letter via certified mail. Countercheck to make sure that the address listed is the exact address and that no information is missed out. Make sure to keep a copy of the letter and the receipt given when sending the letter for future reference.
Professional Tips
Knowing how to write a cancellation letter is very important and may be beneficial for several reasons, as mentioned earlier. Below are professional tips to consider when writing a cancellation letter:
- End on a friendly note: Regardless of the reason for writing the cancellation letter, it is important to remain professional throughout and use polite and friendly language. One may never know if or when they may require the products and/or services from the same organization, company, or individual again, so remaining professional may help maintain their relationship.
- Apologize: It is always important to apologize when canceling anything. Although one may not see it from the other party’s perspective, canceling, especially a major event can be a huge inconvenience to so many people. Make sure to apologize and, if possible, offer them an alternative.
- Use a formal business format: Cancellation letters are very important and can be used as evidence in small claims court. It is important, therefore, to use a standard business letter format when writing.
Below is a standard business formal format to consider when writing:
Sender’s Name and Address
Date
Receiver’s name and address
Salutation
Introduction [State the reason for writing the letter]
Paragraph 2: [Provide reasons for the cancellation]
Paragraph 3: [Make clear that the product/service, membership, etc. should be canceled]
Paragraph 4: [Provide contact information]
Sign the letter
- Make a copy for records: Make copies of all correspondences and store them well. These documents are useful if there is any queries or litigations. Having a copy of all the documents may also help clear any misunderstanding that may arise.
Conclusion
Writing a cancellation letter is very important as it sets clear one’s intent to cancel a deal, service, project, or an undergoing transaction. When writing the cancellation letter, regardless of the reasons for cancellation, keep the tone extremely polite and professional. Also, makes sure to keep a copy of all the receipts and letters sent out for the termination for future reference.
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