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Want to use this letter? A Business Contract Termination Letter is used to terminate an existing agreement or contract between two parties.Notice of Termination. 49.603-6 No-cost settlement agreement-complete termination. Address for Notices. A contract termination letter communicates to a counterparty that you are terminating the agreement that currently governs your business relationship. Whatever the cause the customer should be able to provide evidence to substantiate the cancellation notice.