1. A letter for denying or canceling a business deal should tell the reader precisely of your decision. Nonetheless, it should not accuse or put the blame on the reader.
  2. Open the lee=letter with a positive statement when possible. Shortly give details on why you are denying or finishing your business relationship.
  3. Close with a positive statement.


[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-

Dear [Recipients Name],

We have noticed that you have increased your prices on the materials that we usually order from your company. We do understand that in light of our country's economy, you must have found the need to do so. However, we have discovered another supplier who can supplies us the materials at a much lower cost than yours. Therefore, we have decided to terminate our contract and use them instead. It will be effective on May 10. We hope that you understand and that we maintain our good business relationship.


[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -