The Agency Cancellation Letter is a crucial document used when a principal company needs to formally terminate their relationship with an appointed agent in Indonesia. This document must comply with Indonesian legal requirements, particularly the Indonesian Civil Code (KUH Perdata) and Commercial Code (KUHD) provisions regarding agency relationships. The letter serves multiple purposes: it officially notifies the agent of the termination, specifies the effective date, outlines transition requirements, and documents any post-termination obligations. The document is essential for risk management and legal compliance, as it creates a clear record of the termination process and helps prevent future disputes. It should be drafted in both Indonesian and, if necessary, English languages to comply with Law No. 24 of 2009, and must consider any specific requirements outlined in the original agency agreement.
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1. Letter Header: Company letterhead, date, reference number, and formal business letter formatting
2. Recipient Details: Full name and address of the agent/agency being terminated
3. Reference Line: Clear reference to the original Agency Agreement including its date and reference number
4. Subject Line: Clear indication that this is a Notice of Agency Agreement Cancellation
5. Opening Statement: Formal opening and reference to the authority to issue the cancellation notice
6. Cancellation Declaration: Clear and unambiguous statement of the cancellation of the agency agreement
7. Effective Date: Specific date when the cancellation takes effect, considering any notice periods in the original agreement
8. Transition Requirements: Key immediate actions required from the agent regarding ongoing business, documentation, and company property
9. Closing Statement: Professional closing including any requirements for acknowledgment
10. Signature Block: Space for authorized signatory details and signature
1. Reason for Cancellation: Include when there's a specific breach or cause for termination that needs to be documented
2. Outstanding Payments: Include when there are pending financial matters to be addressed
3. Confidentiality Reminder: Include when there's sensitive information or trade secrets involved
4. Non-Compete Reminder: Include when the original agreement contained non-compete provisions
5. Legal Reservations: Include when needing to reserve legal rights for future claims or disputes
1. Property Return Checklist: List of company property, documents, and materials to be returned by the agent
2. Final Account Statement: Statement of any outstanding financial matters, commissions, or payments
3. Handover Requirements: Detailed list of transition requirements and deadlines for ongoing business matters
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Retail
Technology
Pharmaceuticals
Industrial Equipment
Automotive
Construction
Agriculture
Import/Export
Telecommunications
Financial Services
Real Estate
Tourism
Energy
Relevant Teams
Legal
Commercial
Business Development
Sales
Compliance
Operations
Corporate Secretariat
International Business
Contract Administration
Risk Management
Relevant Roles
Legal Counsel
Commercial Director
Business Development Manager
Sales Director
Country Manager
Managing Director
Compliance Officer
Contract Manager
Chief Executive Officer
Regional Director
Operations Manager
General Counsel
Company Secretary
Relationship Manager
Distribution Manager
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