A contractor termination letter is a formal document issued by a company to end their business relationship with an independent contractor. This letter serves as the official notice of contract cancellation and outlines the reasons for ending the arrangement, as well as any other relevant details. The letter should be written in a professional and respectful manner, providing sufficient detail to ensure that both parties are fully informed about the situation. By issuing a contractor termination letter, companies can protect their interests and maintain good relationships with contractors even after the agreement has been terminated.