Document background
The Final Payment Release Letter is a critical document used in Nigerian business transactions to formally conclude financial obligations between parties. It is typically issued after the successful completion of a project or contract and receipt of the final payment. This document serves multiple purposes: it acknowledges receipt of the final payment, provides a clear release of the paying party from further financial claims, and helps prevent future disputes. Under Nigerian law, this document must be carefully drafted to ensure compliance with the Contract Law Act, Limitation Law, and other relevant legislation. The release letter is particularly important in sectors such as construction, consulting, and government contracting, where it provides certainty and closure to business relationships. The document should clearly identify the contract or project involved, specify the payment amount, and include any relevant conditions or reservations.
