An Agreement Termination Letter is essential when parties need to formally end their contractual obligations in compliance with U.S. law. This document is typically used when either party wishes to end an agreement before its natural conclusion, or when confirming the end of a contract that has reached its term. It should clearly state the termination date, reference the original agreement, outline any remaining obligations, and address any survival clauses. The letter serves as formal documentation of the termination and helps prevent future disputes by clearly establishing the terms of separation.