Two parties get into a legal binding when they sign an agreement with agreed-upon terms and conditions. One of the parties is the service provider and the other party exchanges money with those services. If the service provider does not want to continue being in a legal binding, he can write to not renew the service.
What is a service non-renewal letter to a company?
When a service provider feels that he cannot continue providing services to the company due to any reason, he decides to not renew the services and communicates his decision by writing a letter that is known as a service non-renewal letter. In simple words, the person or company rendering the services decides to do away with this process because of some reason.
What are the reasons for writing the facility cancellation letter?
People who sell the facilities they provide to their clients have an option to terminate the agreement. According to this agreement, they cannot make a sudden decision and deprive their customers of their services all of a sudden. Therefore, they wait for the facility to expire. Once the date of expiry draws closer, they inform their clients about the fact that they want to let the facility expire on its expiry date.
How to write?
Telling the customer that you are no longer interested in continuing providing the services and therefore, you want to cancel the agreement sounds a bit rude. Therefore, you must choose an appropriate way to walk away. Follow the tips given below:
Inform the company about the non-renewal:
At the beginning of the letter, write a clear and concise statement to inform the customer that you are not going to renew the services. To give strength to your decision, mention the clause of that contract in which you were given a right to terminate the contract before its expiry date comes.
Give reason:
Sometimes, the customer wants to know as to why you are not into rendering facilities to him anymore. So, he might want to read the reason. Give the reason if you feel easy. Note that you are not bound to specify the reason as it is your right to terminate it. So, it is up to you if you want to specify the reason or not.
Letters written in a professional setting are generally kept positive. Therefore, if you have a bad reason to specify, try not to bring it up. When you are reluctant to renew the contract, it is a clear sign for the client that you are not happy. So, mentioning the negative reason or criticizing anyone involved in the legal binding is not recommended.
Mention the date of cancellation:
When you are ready to not renew the utility, it means you are ready to be out of the contract and you know when exactly it is going to happen. Customers generally don’t keep track of dates. Therefore, you should consult the agreement and carefully see the date on which the contract is supposed to be ending. Then choose the date after which, you will no longer will available for providing the utilities you have been providing.
Sample letter:
Date:
Name of the sender:
Address:
Company name:
Subject: Service non-renewal letter
Respected Mr. ABC,
This letter is being written to inform you that the company (mention the name of the company) is not renewing the contract of services with you.
Under section (mention the clause of agreement), the agreement will be renewed automatically unless someone terminates the renewal before the expiry date (mention the expiry date). This letter should be served as a timely notification from ABC company of nonrenewal of service.
Please acknowledge this letter by sending back a copy of the letter so that we can ensure that you have received this notification. You can feel free to contact us if you have anything to discuss with us regarding this matter.
We have enjoyed working with you during the tenure of your agreement. We hope that we will find a way to work with you in the future also.
Regards,
Name of the sender,
Name of the company,
Designation of the sender
Signatures
________________
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