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This is from a letter I got today, and it reads:

We hereby confirm that the loan agreement entered into between XYZ bank and aforementioned customer, has been terminated. We request you to remove the hypothetication of XYZ bank on the said vehicle.

Whereas, I think it should be like this:

We hereby confirm that the loan agreement entered between XYZ bank and aforementioned customer, has terminated. We request you to remove the hypothetication of XYZ bank on the said vehicle.

Which tense is used here and why?

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  • first one is correct. It has been terminated by an entity (XYZ Bank). In the second example, you could replace has terminated with has ended. That would make the sentence correct
    – Barrie van Boven
    Commented Sep 23, 2015 at 13:46

1 Answer 1

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When one of the parties to an agreement has exercised a right to terminate, we use the passive construction:

The agreement has been terminated.

If the agreement has reached an explicitly set term, so that it ends of its own accord, so to speak, then the passive is not used and we'd say:

The agreement has terminated.

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