               [CANCELLATION OF CONTRACT]

General rules:

     * State the cancellation in the first sentence.  
     * Give a reason for the cancellation and express 
        regret.
     * Do not attack or threaten the supplier.
                         COMPANY
                         ADDRESS
                     CITY, STATE ZIP




Date


Name
Company
Address
City, State Zip


Dear               ,
     Since you have not taken satisfactory steps to bring 
your performance into compliance with our contract, we have 
no alternative but to cancel the contract.
     [Restatement of reason for cancellation.]
     We regret that we must cancel this contract, but you 
should be aware that we have no alternative.


Sincerely,



Name
Title

