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In this tutorial on writing a contract termination letter, a contract termination letter is defined as a formal notice to end a contract between firms. The guide provides a step-by-step approach to drafting one. It begins with writing your personal information at the top of the letter, including your full name and contact details—home address (with number, street name, city, state, and zip code), phone number (including area code), and email address. Additional contact information is optional. The video emphasizes that this structure is essential for clarity and professionalism in communicating the intention to terminate the contract.