A Company Termination Letter is a formal letter sent to an individual or organization that has been hired to perform services for a company. The letter announces the decision to terminate the relationship without any further obligations from either party. The primary purpose of the letter is to clearly communicate the reasons for the termination, outline any responsibilities the recipient may have in regard to the termination, provide details of any final payments due and address any legal obligations on both parties. It also serves as an important document in the event that either party wishes to take action against the other in relation to the termination. Writing such an important letter in an engaging and professional tone is essential.