A Contract Termination Letter is an official document from one party to another that officially ends an agreement or contract between them. This letter is often used in business situations, and it states the intention to terminate the contract on a stated date. It also serves as a formal notice to the other party involved in the contract, informing them of its termination and giving details on what the cancellation entails. In order to be effective, it must contain clear and concise language. It should state when the termination will take effect and why it is being terminated. The letter should also include any instructions regarding final payments, investment returns, or security deposits that may have been set up during the original contract.