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The Client Termination Letter is a crucial business document used in the Philippine business environment to formally end a professional relationship with a client. It serves as an official record of contract termination and must comply with Philippine legal requirements, particularly those outlined in the Civil Code of the Philippines and related commercial laws. This document is typically used when a company needs to end services due to contract completion, breach of terms, strategic realignment, or other valid business reasons. The letter should maintain professionalism while clearly stating the termination details, effective date, and any transition arrangements. It's essential for risk management and maintaining proper documentation of business relationships, especially in regulated industries or when dealing with significant client engagements.

1. Letter Header: Company letterhead, date, and formal addressing of the client with complete name and address

2. Reference Line: Subject line clearly stating this is regarding contract termination, including any relevant contract reference numbers

3. Opening Statement: Professional greeting and reference to the existing business relationship

4. Termination Declaration: Clear and unambiguous statement of contract termination, citing relevant contract clause if applicable

5. Effective Date: Specific date when the termination becomes effective, considering any notice period requirements

6. Reason for Termination: Brief, professional explanation of the termination reason if appropriate and necessary

7. Next Steps: Clear outline of what happens next, including any immediate actions required by either party

8. Closing Statement: Professional closing with contact information for any questions or concerns