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First, you have to be very sure of the terms of the contact, which isn't easy when there isn't a written record of them. Then you have to be clear that your client has breached these terms and this breach entitles you to terminate. Once you have established this, you must give reasonable notice of termination.
When you no longer need the services of a vendor, follow the terms of your original contract or agreement in canceling services. If you have a contract that stipulates a certain amount of notice, typically 30 days, honor that as well.
We inform you that we will no longer require the services of name of company, as of date. With this notification, we comply with the minimum notice period required by our agreement. Your company has provided us with good service in the past, however, we decided to terminate our business contract due to reasons.
Dear Name, This letter is to inform you that as of date, we will no longer require your services. We've enjoyed working with name of company but due to reasons, we have decided to terminate our contract. All outstanding deliverables should be completed before our contract is officially terminated.
A customer can terminate the contract with a supplier if the supplier breaches the contract in one of a number of ways; late delivery, incorrect quality or specifications of items supplied, incorrect items supplied, or if the vendor says that they cannot deliver the items.