The Termination Of Business Relationship Letter is a crucial document used in Nigerian business practice when one party wishes to formally end a commercial relationship with another party. It serves as an official record of the decision to terminate and outlines the terms of separation, ensuring compliance with Nigerian commercial law and the Companies and Allied Matters Act (CAMA) 2020. This document is typically used when business partnerships, supplier relationships, distribution agreements, or other commercial arrangements need to be concluded. It should include clear identification of parties, effective termination date, reasons for termination if applicable, outstanding obligations, and transition arrangements. The letter helps maintain professionalism, minimize legal risks, and provide clarity regarding the termination process while ensuring all parties understand their rights and obligations during the transition period.

1. Letterhead and Date: Company letterhead, current date, and reference number if applicable

2. Recipient Details: Full name, title, company name, and address of the recipient

3. Subject Line: Clear indication that this is a termination notice

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

5. Termination Declaration: Clear statement of the decision to terminate the business relationship

6. Effective Date: Specific date when the termination becomes effective

7. Reason for Termination: Brief, professional explanation of the termination decision

8. Outstanding Obligations: Summary of any pending payments, deliverables, or obligations

9. Transition Arrangements: Details of how ongoing matters will be handled during the notice period

10. Closing Statement: Professional conclusion and contact information for further communication

11. Signature Block: Name, title, and signature of the authorized representative