Sample Letter of Termination for Purchase / Sale Agreements

In business, sometimes things don’t work out as we expect them to. You might end up with a contract, but eventually, you will get dissatisfied with how the party is delivering or selling their products/services. When caught up in such cases, it’s always recommended that you quit further transactions more professionally. While some people may opt to cancel their purchase over the phone, it is always a good idea to send a purchase order cancellation letter.

Defining a Termination of Purchase Agreement Letter

A letter to terminate a purchase agreement is, as its name implies, an official document sent by a buyer to a seller informing them that the sales contract has been canceled.

Usually, the main purpose of this letter is to bring both parties (the buyer and the seller) to an agreement to hold on to a purchase. Other than that, the letter also states where the earnest money shall be deposited/refunded. When purchases are terminated using an official letter, it not only shows professionalism but also helps maintain better relationships down the line.

Free Templates

Free Printable Purchase and Sale Agreement Termination Letter Template for Word File

Free Printable Purchase Agreement Termination Letter Template for Word File

Free Customizable Purchase Agreement Cancellation Letter Template 01 for Word Document

Free Customizable Purchase Agreement Cancellation Letter Template 02 for Word Document

    Common Reasons to Write this Letter

    There are plenty of reasons as to why an individual may decide to terminate a purchase contract.

    These include:

    • If the supplies fail to honor their commitment and don’t deliver products/services on the agreed date,.
    • When a consumer decides that they can no longer afford the prices of goods/services offered,.
    • If the supplier fails to deliver the right type of goods ordered, i.e., they might be of poor quality or substandard,. 
    • If the business has decided to close down its operations after making some orders, it would be good for it to notify the supplier not to process the supplies in time.
    • If the buyer suspects any cases of fraud from the supplier.


    [Your Full Name]

    [Your Address]

    [City, State, Zip Code]

    [Email Address]

    [Phone Number]


    [Seller’s/Company’s Name]

    [Seller’s/Company’s Address]

    [City, State, Zip Code]

    Subject: Termination of Purchase Agreement for [Product/Service/Property Description]

    Dear [Seller’s/Company’s Representative Name],

    I am writing to formally notify you of my decision to terminate the purchase agreement dated [Date of Agreement], between [Seller’s/Company’s Name] and myself, regarding the purchase of [Product/Service/Property Description], under the terms outlined in the agreement.

    After careful consideration, I have decided to exercise my right to terminate the agreement due to [Reason for Termination, e.g., unsatisfactory product condition, failure to meet delivery deadlines, financing issues, etc.]. This decision was not made lightly, and I have taken all necessary steps to ensure that this action is in compliance with the terms and conditions of our agreement, specifically referring to [Clause or Section from Agreement related to termination].

    Please find attached any relevant documentation supporting my decision to terminate, including [List any Documents, e.g., inspection reports, communication records, financial documents]. As per the agreement, I expect [Full Refund/Partial Refund/Other Compensation as per Agreement Terms] to be processed and returned to me within [Number of Days] days of receipt of this letter.

    I regret any inconvenience this decision may cause and would like to express my appreciation for your understanding and cooperation in this matter. It is my hope that we can resolve this termination amicably, without the need for further legal action. Please confirm receipt of this letter and your agreement to the terms of termination as outlined above.

    Should you require any further information or wish to discuss this matter further, please do not hesitate to contact me at [Your Phone Number] or via email at [Your Email Address].

    Thank you for your prompt attention to this matter.


    [Your Signature (if sending by mail)]

    [Typed Name]

    Sample Letter to Terminate Purchase Agreement

    Subject: Termination of Purchase Agreement – Order #123456

    Dear Customer Service Team,

    I am writing to formally request the termination of the purchase agreement associated with Order #123456, dated February 20, 20XX. Due to unforeseen circumstances, I must cancel this order, which consists of a custom dining room set.

    Upon placing this order, I was under the impression that the delivery timeline, as discussed, would accommodate my needs. However, the subsequent delay notification, extending the delivery date beyond the agreed-upon timeframe, has caused significant inconvenience and no longer meets my requirements.

    As per the sales agreement and consumer rights under the Colorado Consumer Protection Laws, I understand that I am entitled to cancel this order within a specified period if the service or goods provided do not adhere to the agreed terms. Given the circumstances, I kindly request a full refund of the deposit paid ($1,000), to be processed to my original payment method.

    I regret any inconvenience this may cause and appreciate your prompt attention to this matter. Please confirm the receipt of this letter and the initiation of the refund process. Should you require any additional information or documentation from my end, do not hesitate to contact me directly at or 555-678-9100.

    Thank you for your understanding and cooperation. I look forward to your swift response confirming the termination of the order and the details of the refund.


    Maria Gonzalez

    Tips for Writing a Good Termination Letter

    • As a golden rule of thumb, always write the letter in a polite and professional tone.
    • Make sure you provide the reason for canceling the purchase agreement.
    • Indicate in the letter that you are following the stated agreement guidelines and regulations.
    • Make sure you mention the precise date you would like the termination process to end.
    • Show gratitude to the counter party for their service. Also, you can wish them well in their future transactions. Perhaps you will need their services in the future.

    You will constantly enter into contracts as a business owner with various suppliers, clients, and vendors. While some of these contracts will involve verbal communication, others will require legal agreements between two or more parties. Whichever the case, always keep in mind that some contracts won’t go as well as expected and, therefore, will need a termination. However, when you have decided to terminate a contract, always ensure you do it formally through an official purchase agreement termination letter. This will not only show your professionalism but will also help maintain a positive relationship even after the contract is terminated.

    About This Article

    Bryan Brown
    Authored by:
    Licensed Attorney - Asset Protection, Business Formation, Contract Drafting, Real Estate, Securities, Tax
    Bryan Brown is a seasoned attorney with a particular passion for empowering small businesses and startups. His comprehensive suite of services covers crucial areas like Asset Protection, enabling businesses to shield their pivotal assets, and Business Formation, guiding new enterprises through the foundational stages. Bryan's prowess in Contract Drafting ensures that businesses operate on robust agreements, while his insights into Real Estate, Securities, and Tax matters provide a holistic legal framework for clients. With a reputation for thoroughness and dedication, Bryan Brown stands as an invaluable asset for any business aiming to thrive in the Texas environment.

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