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Mutual Rescission And Release Agreement for Indonesia

Mutual Rescission And Release Agreement Template for Indonesia

This document serves as a formal agreement under Indonesian law where two or more parties mutually agree to terminate their existing contractual relationship(s) and release each other from future claims. It incorporates provisions compliant with the Indonesian Civil Code (KUHPer) and related regulations, ensuring a legally binding termination of obligations while protecting both parties' interests. The agreement includes specific provisions for the cessation of rights and obligations, settlement of any outstanding matters, and mutual releases, all structured to comply with Indonesian legal requirements for contract termination and settlements.

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What is a Mutual Rescission And Release Agreement?

The Mutual Rescission and Release Agreement is a crucial document utilized when parties wish to formally end their contractual relationships under Indonesian law. It is commonly used when business relationships need to be terminated amicably, or when parties want to settle disputes without litigation. This document type is particularly important in Indonesia's civil law system, where formal documentation of legal relationships is essential. The agreement combines elements of contract termination (governed by the Indonesian Civil Code) with comprehensive releases, ensuring that both parties can move forward without future legal exposure. It typically includes provisions for handling outstanding obligations, return of property, and final settlements, making it suitable for various commercial and employment contexts. The document must comply with Indonesian legal requirements for valid agreements under Article 1320 of the Civil Code and related regulations.

What sections should be included in a Mutual Rescission And Release Agreement?

1. Parties: Identification of all parties to the agreement, including their full legal names, addresses, and any registration numbers for companies

2. Background: Recitals explaining the existing agreement(s) being terminated, the relationship between the parties, and their mutual desire to terminate and release each other

3. Definitions: Key terms used throughout the agreement, including 'Effective Date', 'Original Agreement', 'Claims', and 'Release'

4. Mutual Rescission: Clear statement of the parties' agreement to terminate the Original Agreement and the effective date of termination

5. Effect of Termination: Detailed description of what happens upon termination, including cessation of obligations and rights

6. Mutual Release: Comprehensive release provisions where each party releases the other from claims related to the Original Agreement

7. Return of Property: Obligations regarding the return or destruction of confidential information, materials, or property

8. Payment and Settlement: Any final payments, settlements, or financial adjustments between the parties

9. Surviving Provisions: Identification of any provisions from the Original Agreement that will survive termination

10. Representations and Warranties: Basic representations about authority to enter agreement and understanding of its effects

11. Governing Law: Specification of Indonesian law as governing law and jurisdiction for disputes

12. Execution: Signature blocks and execution requirements

What sections are optional to include in a Mutual Rescission And Release Agreement?

1. Non-Disparagement: Mutual agreements not to make negative statements about each other, often included in sensitive commercial or employment terminations

2. Confidentiality: Obligations to keep the terms of the rescission agreement confidential, if required

3. Tax Provisions: Specific provisions about tax implications and responsibilities, particularly relevant for high-value settlements

4. Further Assurance: Commitment to execute additional documents if needed, useful for complex terminations

5. Specific Exclusions: List of specific claims or rights that are not being released, needed when certain matters should be preserved

6. Employee Benefits: Specific provisions about ongoing benefits or obligations if the agreement involves employment relationships

7. Dispute Resolution: Detailed alternative dispute resolution procedures, recommended for international or high-value agreements

What schedules should be included in a Mutual Rescission And Release Agreement?

1. Schedule 1 - Original Agreement(s): Copy or list of all agreements being terminated

2. Schedule 2 - Settlement Payment Details: Breakdown of any settlement payments, including payment schedule if applicable

3. Schedule 3 - Property Return Schedule: List of items to be returned by each party with timeline

4. Schedule 4 - Surviving Obligations: Detailed list of specific obligations that survive termination

5. Appendix A - Release Specifics: Detailed description of specific claims being released, if any

6. Appendix B - Form of Public Announcement: If required, agreed form of any public statements about the termination

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

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions























Clauses


























Relevant Industries

Manufacturing

Technology

Real Estate

Construction

Retail

Financial Services

Professional Services

Healthcare

Education

Energy

Mining

Agriculture

Transportation

Telecommunications

Hospitality

Relevant Teams

Legal

Executive Leadership

Human Resources

Finance

Operations

Commercial

Risk & Compliance

Procurement

Business Development

Project Management

Relevant Roles

Chief Executive Officer

Managing Director

Chief Legal Officer

Legal Counsel

Contract Manager

Business Development Manager

Human Resources Director

Chief Financial Officer

Operations Director

Project Manager

Procurement Manager

Commercial Director

Risk Manager

Compliance Officer

General 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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