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Consulting Agreement Termination Letter Template for United Arab Emirates

A formal document governed by UAE law that serves to officially terminate a consulting engagement between a company and either an individual consultant or consulting firm. This document complies with UAE Federal Law No. 5 of 1985 (Civil Code) and related commercial regulations, providing clear terms for the termination including effective date, notice period, final payments, and post-termination obligations. It addresses key aspects such as the return of confidential information, settlement of outstanding fees, and any continuing obligations, while ensuring compliance with UAE commercial practices and legal requirements for business correspondence.

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What is a Consulting Agreement Termination Letter?

The Consulting Agreement Termination Letter is a crucial document used in the United Arab Emirates business environment when a company needs to formally end a consulting engagement. It serves as the official notification of termination and must comply with UAE Federal Laws, particularly the Civil Code and Commercial Transactions Law. This document is typically used when either party wishes to end the consulting relationship according to the terms specified in the original agreement, or when both parties mutually agree to terminate the engagement. The letter should detail the effective termination date, notice period compliance, final payment terms, handover requirements, and any post-termination obligations such as confidentiality and non-compete provisions. In the UAE context, particular attention must be paid to formal requirements such as company stamps, proper signatory authority, and appropriate professional language in both Arabic and English if required.

What sections should be included in a Consulting Agreement Termination Letter?

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the consultant

2. Subject Line: Clear indication that this is a termination notice for the consulting agreement

3. Reference to Original Agreement: Details of the original consulting agreement including date, parties, and any relevant amendments

4. Termination Statement: Clear statement of termination including the effective date and reference to relevant termination clause in the original agreement

5. Notice Period: Confirmation of notice period being given and how it aligns with the agreement terms

6. Outstanding Deliverables: List of any pending work or deliverables that need to be completed before termination

7. Payment Terms: Details of final payment, including any pro-rated fees or outstanding amounts

8. Return of Property: Requirements for returning any company property, documents, or confidential information

9. Closing Statement: Professional closure including any appreciation for services rendered

10. Signature Block: Authorized signatory details and company stamp as required under UAE law

What sections are optional to include in a Consulting Agreement Termination Letter?

1. Transition Plan: Include when there's a need to outline the handover process of ongoing projects or responsibilities

2. Non-Compete Reminder: Include when the original agreement contains non-compete or non-solicitation clauses that survive termination

3. Dispute Resolution: Include when there are unresolved issues or potential disputes that need to be addressed

4. Mutual Release: Include when both parties agree to release each other from future claims

5. Confidentiality Reminder: Include when there's a need to emphasize ongoing confidentiality obligations

6. Certificate of Service: Include when the consultant requests or requires formal documentation of the engagement

What schedules should be included in a Consulting Agreement Termination Letter?

1. Schedule A - Outstanding Payments: Detailed breakdown of any final payments, including fees, expenses, and other compensations

2. Schedule B - Pending Deliverables List: Comprehensive list of any unfinished work or deliverables that need to be completed

3. Schedule C - Company Property Checklist: Itemized list of company property, access credentials, and documents to be returned

4. Appendix 1 - Transition Timeline: Detailed timeline for handover of responsibilities and completion of pending work, if applicable

Authors

Alex Denne

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

Publisher

Ƶ

Document Type

Cancellation Letter

Sector

Sales

Cost

Free to use

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