Sample Letter on Termination of contract due to company financial constraints

Subject: Termination of contract due to company financial constraints

22nd April 2018

Hilbrokes supply firm

I regret to inform your established firm that the four-year contract for the supply of company electronics to Victoria Falls Company has been terminated effective 22 April 2018.

Your termination is for the following reasons:

Due to the country’s economic condition the company is unable to finance the 4-year contract with your firm. Additionally, the company is laying off some of its employees to help keep the company going. The remaining payment for the completed contract period will be paid by end of this month. This document is private and confidential as should not be shared with prohibited third party.

If you have any questions regarding this letter please contact our Human Resource Department.

Very respectfully


Presenting the Message

As an executive officer, I would request an appointment with the top officers of Hilbrokes supply firm at a closed boardroom meeting. I would begin by thanking the company officials for their time for the meeting, then later offer them refreshments and thank them for having maintained a close contact with my company in the supply. My voice will be calm and steady with few pauses in the conversation.

I would get into the agenda of the meeting by explaining the current state of the company while elaborating the company’s activities on the sourcing of suppliers.

The next step is to communicate the bad news to the officials informing them of the decision to terminate the contract. Furthermore, I would engage them in professional talks about the decision. I will wrap up the conversation by wishing the firm well and promise to engage their services at later.

Activity 2

Crisis Communication Plan


This crisis communication plan will display my roles and responsibilities as the representative of Maisy Mayflower. Presenting the different parts of the scenario will depend on the laws of the two countries. Considerably, since the child was adopted in Bolivia, the state’s policies will take precedence and help in assessing the procedure for the adoption. For the purpose of this plan, a crisis will be defined as an event that may prompt sustained media and public coverage and has the ability to damage the reputation of the person affected.


My guiding principle is to communicate the facts about the entire process and regularly updating any changes that might be made.  The implementation of certain aspects such as speed, honesty, and transparency will help me in providing the correct information to the concerned audiences. Although each crisis will require unique and different public information, the plan outlines a communication response which every employee takes an appropriate action.


Given the urgency of the problem and the reports provided by the media, I will take an immediate action to find the facts about the different events and the amount of damage caused on my client. If there is any security threat raised, I would consult the local law enforcement authorities to protect Maisy Mayflower both at her home and in public gatherings.


As the sole representative, I will make sure all the changing facts about the case are made public to enhance transparency and to assess whether the strategies need to be changed.  In essence, the success of this plan rests solemnly on my ability to show the audiences the cause of the problem and how it will solve.



Bowers, M. R., Hall, J. R., & Srinivasan, M. M. (2017). Organizational culture and leadership style: The missing combination for selecting the right leader for effective crisis management. Business Horizons60(4), 551-563.

Paton, D., & Johnston, D. (2017). Disaster resilience: an integrated approach. Charles C Thomas Publisher.

Spillan, J. E. (2017). Strategies for successful crisis management. School of Business, University of North Carolina, Pembroke.