The Mutual Cancellation Agreement is a crucial document used when parties mutually agree to terminate their existing contractual relationship in Indonesia. It's particularly relevant when business circumstances change, strategic directions shift, or parties wish to amicably conclude their business relationship without invoking formal termination clauses. The document must comply with Indonesian Civil Code requirements and typically includes provisions for mutual releases, settlement of accounts, and handling of post-termination matters. It's essential in various scenarios, from simple service agreements to complex joint ventures, and must be drafted in Indonesian language as per Law No. 24 of 2009, though bilingual versions are common for international transactions. The agreement provides legal certainty and protection for all parties while ensuring a clear framework for ending their contractual obligations.
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1. Parties: Identification of all parties to the agreement, including their complete legal names, addresses, and company registration details as required under Indonesian law
2. Background: Brief recitals explaining the existing agreement(s) being cancelled and the parties' mutual desire to terminate their contractual relationship
3. Definitions: Key terms used in the agreement, including reference to the Original Agreement(s) being cancelled
4. Mutual Cancellation: Clear statement of the mutual agreement to cancel the Original Agreement(s) and the effective date of cancellation
5. Release of Obligations: Mutual release of parties from their obligations under the Original Agreement(s), subject to any surviving provisions
6. Settlement of Outstanding Matters: Confirmation that all outstanding payments, obligations, or deliverables have been settled or how they will be handled
7. Return of Property: Requirements for the return or disposal of any confidential information, materials, or property
8. Governing Law: Confirmation that Indonesian law governs the cancellation agreement
9. Execution: Signature blocks and execution requirements, including provision for dual language if required
1. Surviving Provisions: Identifies any provisions from the Original Agreement that will survive the cancellation, such as confidentiality obligations - include when certain obligations need to continue
2. Tax Provisions: Addresses tax implications of the cancellation - include when there are significant tax consequences to address
3. Non-Disparagement: Mutual agreement not to make negative statements about each other - include in sensitive commercial relationships
4. Dispute Resolution: Specific procedures for resolving any disputes arising from the cancellation - include when parties want specific dispute resolution mechanisms
5. Further Assurance: Commitment to execute additional documents if needed - include when complex arrangements might require future documentation
6. Costs: Allocation of costs related to the cancellation - include when significant costs are involved in the termination process
1. Schedule 1 - Original Agreement(s): Copy or details of the agreement(s) being cancelled, including date and reference numbers
2. Schedule 2 - Outstanding Matters: List of any outstanding matters and their agreed resolution method, if applicable
3. Schedule 3 - Settlement Statement: Detailed statement of any financial settlements or payments related to the cancellation, if applicable
Relevant legal definitions
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Relevant Industries
Manufacturing
Technology
Retail
Construction
Energy
Mining
Agriculture
Financial Services
Healthcare
Telecommunications
Logistics
Real Estate
Professional Services
Education
Consumer Goods
Relevant Teams
Legal
Commercial
Procurement
Business Development
Operations
Compliance
Corporate Secretariat
Risk Management
Finance
Strategy
Relevant Roles
Chief Executive Officer
Chief Legal Officer
Legal Director
Commercial Director
Contract Manager
Business Development Manager
Procurement Manager
Legal Counsel
Company Secretary
Operations Director
Project Manager
Partnership Manager
Compliance Officer
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