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Business Partnership Termination Agreement for Indonesia

Business Partnership Termination Agreement Template for Indonesia

This document serves as a formal agreement to terminate a business partnership in Indonesia, governed by Indonesian law including the Civil Code (KUHPerdata) and Commercial Code (KUHD). It outlines the terms and conditions for dissolving the partnership, including asset distribution, liability settlement, and mutual releases between partners. The agreement ensures compliance with Indonesian regulatory requirements while providing a clear framework for winding up partnership affairs, protecting all parties' interests, and establishing post-termination obligations and rights.

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Business Partnership Termination Agreement

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What is a Business Partnership Termination Agreement?

The Business Partnership Termination Agreement is a crucial legal document used when business partners in Indonesia decide to end their business relationship formally. It becomes necessary when partners mutually agree to dissolve their partnership, whether due to achieved objectives, strategic changes, or other business considerations. This document, governed by Indonesian law, particularly the Civil Code (KUHPerdata) and Commercial Code (KUHD), provides a comprehensive framework for partnership dissolution. It addresses essential aspects such as final accounting, asset distribution, liability settlement, and ongoing obligations. The agreement helps prevent future disputes by clearly documenting the termination terms and ensuring all parties understand their rights and responsibilities during and after the dissolution process.

What sections should be included in a Business Partnership Termination Agreement?

1. Parties: Identification of all partnership parties involved in the termination agreement, including their full legal names, addresses, and registration details

2. Background: Brief history of the partnership, reference to original partnership agreement, and reasons for termination

3. Definitions: Definitions of key terms used throughout the agreement

4. Effective Date of Termination: Specific date when the partnership will officially terminate

5. Mutual Agreement to Terminate: Express statement of parties' agreement to terminate the partnership

6. Final Accounting: Provisions for final accounting of partnership assets, liabilities, and accounts

7. Asset Distribution: Terms and process for distribution of partnership assets among partners

8. Settlement of Liabilities: Provisions for handling outstanding debts, liabilities, and obligations

9. Mutual Release: Release of claims and obligations between partners post-termination

10. Confidentiality: Ongoing obligations regarding confidential information

11. Representations and Warranties: Partners' assertions about their authority, asset ownership, and absence of undisclosed liabilities

12. Governing Law: Specification of Indonesian law as governing law and jurisdiction

13. Dispute Resolution: Process for resolving any disputes arising from the termination

14. General Provisions: Standard clauses including notices, amendments, and severability

15. Execution: Signature blocks and execution requirements

What sections are optional to include in a Business Partnership Termination Agreement?

1. Intellectual Property Rights: Distribution and ownership of IP rights post-termination, used when the partnership involved significant IP assets

2. Employee Matters: Handling of employees and employment contracts, included when the partnership has employees

3. Ongoing Projects: Provisions for completing or transferring ongoing projects, needed when there are unfinished business matters

4. Non-Compete Provisions: Restrictions on future competitive activities, included when partners agree to post-termination competition limitations

5. Tax Matters: Specific tax considerations and allocations, needed when there are significant tax implications

6. Insurance: Handling of insurance policies and claims, included when there are active insurance matters

7. Client/Customer Transition: Process for transitioning clients or customers, needed when client relationships need to be allocated

8. Public Announcements: Protocol for announcing the termination, included for partnerships with public presence

What schedules should be included in a Business Partnership Termination Agreement?

1. Schedule A - Asset Inventory: Detailed list of all partnership assets and their agreed values

2. Schedule B - Liability List: Comprehensive list of all partnership liabilities and obligations

3. Schedule C - Distribution Plan: Detailed plan for distribution of assets and liabilities among partners

4. Schedule D - Outstanding Contracts: List of all contracts and their disposition post-termination

5. Schedule E - Intellectual Property: Inventory of all IP assets and their allocation

6. Schedule F - Bank Accounts: List of all partnership bank accounts and their handling

7. Appendix 1 - Original Partnership Agreement: Copy of the original partnership agreement being terminated

8. Appendix 2 - Final Financial Statements: Final partnership financial statements and accounts

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Manufacturing

Retail

Technology

Professional Services

Construction

Real Estate

Agriculture

Mining

Transportation

Hospitality

Healthcare

Education

Financial Services

Media and Entertainment

Energy

Trading and Distribution

Relevant Teams

Legal

Finance

Executive Leadership

Corporate Secretariat

Compliance

Risk Management

Business Development

Operations

Administrative Support

Asset Management

Relevant Roles

Chief Executive Officer

Managing Director

Business Owner

Partner

Chief Financial Officer

Legal Counsel

Corporate Secretary

Business Development Manager

Operations Director

Finance Director

Compliance Officer

Risk Manager

Company Director

General Manager

Partnership Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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