How To Write a Contract Reminder Letter (Template and Tips)

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All contracts have an expiration date, whether they’re vendor contracts, employment contracts, tenancy agreements or another type of contract. When that expiration date approaches, you may need to send a formal contract reminder letter to remind the parties of the impending expiry, or to renew, renegotiate or cancel the contract (ideally, before the contract expires).

How to Write a Contract Reminder Letter

The first step is to determine how the contract will be affected by its expiration. Some contracts are automatically renewed, while others require a formal letter to renegotiate, renew or cancel them. In the case of a cancelled contract, you may be required to provide a reason for the cancellation.

The next step is to make a list of all of the parties involved in the contract. This list should include any business partners as well as the contact person, their email and mailing address, and phone number. You’ll need to write your letter to all of them.

The next step is to determine what information is needed. Some contracts require more information than others, so this should be taken into consideration.

Once you’ve gathered all of the necessary information, you’re ready to write the letter. Start by introducing the subject of the letter. Next, explain why the contract is being cancelled, renewed, or renegotiated. Finally, wrap up by thanking the recipient for their time and consideration.

Principles to Remember When Drafting Your Letter

  • Be firm and professional
  • Use common letter writing conventions – make sure you include a letterhead, a “to”, and a date
  • Use the right tone – avoid allowing emotion to come into your letter (for instance, if you are dissatisfied with performance)
  • Know your rights and responsibilities
  • Know the company’s rights and responsibilities
  • Know the contents of the contract
  • Use plain but direct language
  • Wrap up with a polite closing statement
  • Be explicit about what you want to do
  • Use contract reminder software to make sure you can send reminders ahead of time
  • Have multiple people proofread your letter for mistakes
  • Keep a copy of your letter in case you need it later

Sending Renewals via Email

You can send a contract renewal reminder email in the same way that you’d send a letter – for many companies, it will be the preferred option. However, pay attention to who the email is going to – ensure it’s sent to the correct recipients, whether that’s an individual or a specific contracts/legal email address. If it’s a catch-all address such as [email protected], try to cc a human as well.

Nowadays, an email reminder for contract renewal is often sent as part of a monthly rolling contract, and it may be sent before OR after payment is made (e.g., a Netflix receipt, or Apple App Store subscription receipt). If you run a business where you bill companies or people monthly for services, you may wish to send an renewal reminder email, which could look like the following:

Hi [Firstname]

This is to let you know that we’ll process your subscription to [service] in [three] days. Please log in and cancel your subscription if you no longer want to be billed for this service.

[Company] thanks you for your custom.

Regards,

[Signature]

A sample contract reminder letter (from vendor to customer)

To Whom It May Concern:

This letter is to inform you that the [contract] between [company] and [company] is expiring on [date].

We would welcome your renewal of this contract on the [same terms].

If you have any questions or concerns, please contact me at [phone number].

Sincerely,

[Signature]

A sample contract cancellation letter

To Whom It May Concern:

This letter is to inform you that the [contract] between [company] and [company] is cancelled as of [date].

[Company A] has decided to cancel this contract due to [reason].

If you have any questions or concerns, please contact me at [phone number].

Sincerely,

[Signature]

A sample contract renegotiation letter

To Whom It May Concern:

This letter is to inform you that the [contract] between [company] and [company] is to be renegotiated as of [date].

[Company A] wishes to renegotiate this contract due to [reason].

We would respectfully request that [Company B] incorporate the following changes in the contract.

If you have any questions or concerns, please contact me at [phone number].

Sincerely,

[Signature]

A sample contract renewal letter (from vendor to customer)

To Whom It May Concern:

This letter is to inform you that the [contract] between [company] and [company] is being renewed as of [date].

If you have any questions or concerns, please contact me at [phone number].

We thank you for your custom.

Sincerely,

[Signature]

A sample contract renewal notification (from customer to vendor)

Dear [vendor name]:

As you are aware, the [name of agreement] between [company name] and [company name] has been in effect since [date].

We would like to renew the agreement for another [time period] to [date].

Please contact me to confirm the renewal.

Thank you.

Sincerely,

[Signature]

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