The Agreement Termination Letter is a crucial document used in Indonesian business practice when parties need to formally end their contractual relationships. It serves as an official record of termination and must comply with Indonesian Civil Code requirements and other relevant regulations. This document is typically used when parties mutually agree to end their relationship, when one party exercises their contractual right to terminate, or when circumstances necessitate contract termination. The letter should clearly state the termination's effective date, reference the original agreement, outline any remaining obligations, and address the handling of confidential information or property. It may also include provisions for transition periods, final settlements, or dispute resolution mechanisms. The document's format and content should reflect Indonesian legal requirements, including proper language requirements under Law No. 24 of 2009 if involving Indonesian parties.
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1. Date and Address Block: Current date and complete address details of both parties
2. Reference Line: Reference to the original agreement being terminated, including its title and execution date
3. Subject Line: Clear indication that this is a termination notice/letter
4. Formal Greeting: Appropriate salutation to the receiving party
5. Opening Statement: Reference to termination right under the original agreement and notification of exercise of that right
6. Termination Details: Specific details about the termination including effective date and basis for termination
7. Outstanding Obligations: Statement regarding any remaining obligations, payments, or duties of either party
8. Return of Property: Instructions regarding return of any property, documents, or confidential information
9. Closing Statement: Formal closure including any requirements for acknowledgment
10. Signature Block: Space for signature, name, and title of authorized signatory
1. Mutual Release: Section releasing both parties from future claims - include when a clean break is desired and agreed upon
2. Survival Clauses: Reference to any provisions from the original agreement that will survive termination
3. Dispute Resolution: Include when there are unresolved issues or potential for disputes
4. Transition Arrangements: Details of any transitional period or handover requirements - include when services or operations need to be wound down
5. Confidentiality Reminder: Restatement of confidentiality obligations - include when sensitive information was shared during the agreement
6. Payment Settlement: Details of final payments or financial settlements - include when there are outstanding financial matters
1. Schedule A - Original Agreement: Copy or reference to the original agreement being terminated
2. Schedule B - Outstanding Obligations List: Detailed list of any remaining obligations to be fulfilled by either party
3. Schedule C - Settlement Statement: Statement of any financial settlements or payments required
4. Schedule D - Property Return Checklist: List of items, documents, or materials to be returned by either party
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