Termination Of Purchase Agreement for Nigeria

Termination Of Purchase Agreement Template for Nigeria

This document is a formal agreement governed by Nigerian law that terminates an existing purchase agreement between parties. It outlines the terms and conditions for ending the commercial relationship, including settlement of outstanding obligations, return or disposal of goods if applicable, and mutual release of future liabilities. The agreement ensures compliance with Nigerian contract law and commercial regulations, providing legal certainty for all parties involved while protecting their respective interests in the termination process.

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What is a Termination Of Purchase Agreement?

The Termination of Purchase Agreement is a crucial legal document used in Nigerian commercial transactions when parties mutually agree to end their existing purchase arrangement. This document becomes necessary when circumstances such as changed market conditions, inability to fulfill obligations, or strategic business decisions require the formal discontinuation of a purchase agreement. It must comply with Nigerian contract law and commercial regulations, particularly the Sales of Goods Act and Contract Law of Nigeria. The agreement typically includes provisions for mutual release, settlement terms, handling of outstanding obligations, and post-termination responsibilities. It serves to protect both parties' interests and prevent future disputes by clearly documenting the terms of termination.

What sections should be included in a Termination Of Purchase Agreement?

1. Parties: Identification of all parties to the termination agreement, including their full legal names, addresses, and registration details if companies

2. Background: Recitals detailing the original purchase agreement, its date, and key terms, and the circumstances leading to termination

3. Definitions: Definitions of key terms used in the agreement, including reference to defined terms from the original purchase agreement

4. Termination: Clear statement of termination, effective date, and mutual agreement of the parties

5. Settlement Terms: Details of any financial settlement, including final payments or refunds

6. Release of Obligations: Mutual release of parties from their obligations under the original agreement

7. Representations and Warranties: Confirmations by both parties regarding authority to terminate and absence of third-party claims

8. Confidentiality: Ongoing obligations regarding confidential information obtained during the original agreement

9. Governing Law: Confirmation that Nigerian law governs the termination agreement

10. Execution: Signature blocks and execution requirements

What sections are optional to include in a Termination Of Purchase Agreement?

1. Return of Goods: Include when there are physical goods or inventory that need to be returned or disposed of

2. Outstanding Payments: Include when there are detailed payment arrangements or installments to be settled

3. Intellectual Property: Include when the original agreement involved IP rights that need to be addressed

4. Survival Clauses: Include when certain provisions from the original agreement need to survive termination

5. Dispute Resolution: Include when specific dispute resolution mechanisms are needed beyond standard court jurisdiction

6. Non-Competition: Include when post-termination competitive restrictions need to be maintained or addressed

7. Third Party Rights: Include when there are third party beneficiaries or obligations that need to be addressed

What schedules should be included in a Termination Of Purchase Agreement?

1. Schedule 1 - Original Purchase Agreement: Copy or details of the original purchase agreement being terminated

2. Schedule 2 - Settlement Statement: Detailed breakdown of any financial settlements, including calculations

3. Schedule 3 - Inventory List: List of any goods or inventory to be returned or disposed of

4. Schedule 4 - Outstanding Obligations: List of any surviving obligations or continuing responsibilities

5. Appendix A - Release Form: Standard form for mutual release of claims

6. Appendix B - Payment Schedule: Schedule of any installment payments or financial arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Oil and Gas

Manufacturing

Agriculture

Real Estate

Retail

Construction

Technology

Mining

Telecommunications

Financial Services

Automotive

Consumer Goods

Relevant Teams

Legal

Procurement

Finance

Operations

Commercial

Supply Chain

Risk Management

Compliance

Business Development

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Managing Director

Commercial Director

Procurement Manager

Legal Counsel

Contract Manager

Chief Financial Officer

Supply Chain Manager

Business Development Manager

Operations Director

Company Secretary

Risk Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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