The Mutual Release Agreement is a critical legal instrument used in Indonesian business and commercial relationships when parties wish to formally resolve disputes or terminate their obligations to each other. This document type is particularly relevant in situations involving commercial disputes, employment separations, partnership dissolutions, or settlement of claims under Indonesian law. It must comply with the Indonesian Civil Code and related regulations, including mandatory language requirements. The agreement typically includes detailed provisions about the scope of releases, representations about undisclosed claims, and specific consideration being exchanged. It serves as a final settlement document that prevents parties from bringing future claims about the released matters, providing clarity and certainty under Indonesian law.
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1. Parties: Identifies and defines all parties to the agreement, including their legal status, registration details, and authorized representatives
2. Background: Sets out the context of the dispute or circumstances leading to the mutual release, including reference to any existing agreements or relationships
3. Definitions: Defines key terms used throughout the agreement, including 'Claims', 'Released Matters', and other relevant terminology
4. Mutual Release: Core section detailing the mutual releases being granted by each party, including scope and extent of claims being released
5. Representations and Warranties: Statements by each party regarding their authority to enter into the agreement and that they have not assigned any claims to third parties
6. Consideration: States the consideration being exchanged for the mutual releases, even if nominal
7. No Admission of Liability: Clearly states that the agreement and releases do not constitute an admission of liability by any party
8. Confidentiality: Obligations regarding maintaining confidentiality of the agreement and its terms
9. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and designates jurisdiction for dispute resolution
10. Execution: Formal closing and signature blocks, including requirements for proper execution under Indonesian law
1. Payment Terms: Include when the release involves monetary settlement, detailing payment amounts, methods, and timing
2. Return of Property: Include when parties need to return documents, materials, or other property as part of the settlement
3. Non-Disparagement: Include when parties wish to prevent negative statements about each other after the release
4. Cooperation: Include when ongoing cooperation is needed for implementing the release or related matters
5. Tax Provisions: Include when the release involves payments with tax implications
6. Insurance Claims: Include when insurance policies or claims are relevant to the released matters
7. Future Claims: Include when specific provisions about future or unknown claims need to be addressed
8. Language Declaration: Include when agreement is bilingual, stating which version prevails (required if non-Indonesian version exists)
1. Schedule of Released Claims: Detailed list of specific claims, disputes, or matters being released
2. Schedule of Excluded Claims: List of any specific claims or matters explicitly excluded from the release
3. Schedule of Related Agreements: List of any existing agreements affected by or relevant to the release
4. Payment Schedule: If applicable, detailed breakdown of any payments to be made as part of the settlement
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Construction
Real Estate
Technology
Financial Services
Mining and Resources
Retail and Consumer Goods
Healthcare
Education
Transportation and Logistics
Agriculture
Energy
Telecommunications
Professional Services
Tourism and Hospitality
Relevant Teams
Legal
Human Resources
Compliance
Risk Management
Corporate Affairs
Executive Leadership
Finance
Operations
Commercial
Business Development
Project Management
Relevant Roles
Legal Counsel
Corporate Secretary
Chief Legal Officer
Risk Manager
Compliance Officer
Human Resources Director
Chief Executive Officer
Chief Financial Officer
Operations Director
Contract Manager
Business Development Manager
Project Manager
General Manager
Commercial Director
Settlement Officer
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