When a business is terminated by the owners, a contract is to be made which is a legal certification of the action. On the termination of the business, decisions such as the distribution of the capital, operating surplus/ loss, the cash flows etc. are to be made, which are recorded in the contract. A sample of such a termination contract is given here where the two co owners agree to the termination terms and any other decisions.

Sample Business Termination Contract

Date on which the contract is signed: 25th July 2013

This termination contract is being made for and is being entered by Mr. Arthur Bruno (to be referred to as owner 1) and Mr. James Harper (to be referred to as owner 2) on the above mentioned date.

This contract certifies the termination of a business by the name Harper & Bruno Distributers Ltd. The terms of the termination and the details of the owners are contained in this document.

Details of owner 1:

Name: Mr. Arthur Bruno

Designation: Co- Owner

Contact Address: House No. 1349, Western Lane, North Square, New York, USA.

Contact No.: 21568979

Details of owner 2:

Name: Mr. James Harper

Designation: Co- Owner

Contact Address: 487, 3rd and mains, Times Square, New York, USA.

Contact No.: 32155562

Details of the business:

Name: Harper & Bruno Distributers Ltd.

Location: 4536, 5th and mains, New York, USA.

Terms and Conditions:

11. The operating surplus (profit) of the firm as on the date of termination is to be divided between the owners in a ratio of 1:1.

12. The office building is to be sold or leased as suitable, and the proceeds are to be equally divided between the parties.

13. The brand name is being dissolved on the business termination.

14. Any due bills or charges are to be borne by the parties in equal ratio.

Signatures:

_______________________ _______________________

Mr. Arthur Bruno                            Mr. James Harper

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