How To Write a Contract Reminder Letter
May 15, 2024
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).
Need to regularly send reminders, or keep on top of renewing contracts? Find out how Contract Hound’s easy contract reminder software ensures you never miss a deadline here. It’s free to get started!
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 producement@, try to cc a human as well.
Sample Contract Renewal Email
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:
A Sample Contract Reminder Letter (from vendor to customer)
A Sample Contract Cancellation Letter
A Sample Contract Renegotiation Letter
A Sample Contract Renewal Letter (from vendor to customer)
A Sample Contract Renewal Notification (from customer to vendor)
A Lease Expiration Reminder Letter (from landlord / management company to tenant)
Follow direction from your lease agreement around whether digital communication is an acceptable form of notice for legal purposes. If this is not explicitly called out, email notices can be a grey area. You can either seek more clarification from a lawyer or play it safe and send an old fashioned letter. Or, what we’ve seen some clients do is do both.
Ensure the reminder is sent well in advance of the expiration date. If you have notice provisions in your lease agreement, make sure you are in compliance with them.
Need to regularly send reminders, or keep on top of renewing contracts? Find out how Contract Hound’s easy contract reminder software ensures you never miss a deadline here. It’s free to get started!