The Termination of Agency Agreement Letter is a crucial document used in Pakistani business practice when a principal wishes to formally end a commercial agency relationship. This document, governed by Pakistani law including the Contract Act 1872 and the Partnership Act 1932, serves as an official notification of termination and outlines the terms under which the agency relationship will conclude. It is typically used when either party wishes to end the agency relationship according to the terms of the original agreement, or when circumstances necessitate termination. The letter must comply with Pakistani legal requirements for agency terminations, including proper notice periods, handling of outstanding commissions, and post-termination obligations. It's essential for maintaining clear business records and preventing future disputes.

1. Date and Address Block: Current date and full contact details of both parties

2. Reference Line: Subject line clearly stating 'Termination of Agency Agreement' and any reference numbers

3. Opening Salutation: Formal greeting to the appropriate contact person

4. Agreement Reference: Clear identification of the agency agreement being terminated, including its date and parties

5. Termination Notice: Formal statement of termination, citing relevant clause from original agreement if applicable

6. Effective Date: Clear statement of when the termination becomes effective

7. Reason for Termination: Brief explanation of termination reason if appropriate and required

8. Immediate Actions Required: List of immediate steps the agent must take, such as ceasing to represent the principal

9. Return of Materials: Requirements for returning any company property, materials, or documents

10. Final Accounting: Statement regarding final commission payments and outstanding accounts

11. Closing Statement: Professional closing with any acknowledgment requirements

12. Signature Block: Space for signature, name, and title of authorized representative