Understanding your rights to terminate a business relationship should start before you sign.

I want to terminate a relationship, where do I start?

Before you pick up the phone to end the relationship, go back to your agreement. Specifically,
be sure to review the termination and payment clauses. These clauses will layout what notice
you must provide to terminate the agreement, the amount of final payment and when such
payment must occur.

Sample Termination Email When You Are The Client

Subject Line: Completion of Brand Development

Email:
Hi Mr. Johnson,

First off, I want to say that our company has really appreciated the experience your team has brought to our brand development process. With that said, I wanted to provide written notice that effective on the completion of our logo design, our company will not require future branding services and will be terminating our service agreement. Per the agreement, upon receipt of your final invoice, we will submit payment within seven days.

Sincerely,
[Your Name]

Sample Termination Email When You Are The Service Provider

Subject Line: Virtual assistant contract

Email:
Hello Mr. Smith,

I wanted to provide written notice that on [date] we will be terminating our service agreement, which will provide you 30 days’ notice as required in our agreement.

It has come to my attention that you have requested a departure from our mutually agreed scope of work that we are not able to provide at this time. For this reason, we believe that it may be more beneficial to seek out another virtual assistant that can better help your company. Our company is thankful for the opportunity to work with your business, and we wish you luck with your future projects.

We will be sending your final invoice this week and updating the status on all projects in
process to help with transition.

Best regards,
[Your name]

How do I handle payment?

Termination of the agreement does not excuse the payment obligation for services already rendered.

If you are responsible for making the final payment you may need to:
• Provide written notice of termination with the required amount of notice
• Fulfill any other obligation listed in your agreement
• Deliver final payment on time. Terminating the agreement does not excuse your obligation to pay for services already rendered

If you are expecting to receive final payment you may need to:
• Provide written notice of termination with the required amount of notice
– If there is a notice period, continue to provide the required services without interruption through the end such notice period
• Provide your final invoice or timesheet
• Returning the other party’s materials / destroy the other party’s date
• Fulfill any other obligation listed in your agreement on a timely basis

Be sure you confirm with the other party that you fulfilled all of your obligations upon termination (in writing for your records). Timing can be everything when ending a business relationship.

Important to keep in mind…

While you may want to bring this relationship to a close as quickly as possible, keep in mind that ending a relationship should be treated as purposefully as starting one. It’s important that you see the contract through – make sure you know your rights to terminate the contract. Invest in your future, review your agreements before you sign. Ambiguity can cost you!