The Release of Contract Letter is a crucial legal document used in Indonesian business practice when parties mutually agree to terminate their contractual relationships. This document is essential when businesses need to formally end their obligations under an existing contract while ensuring legal compliance with Indonesian Civil Code requirements. The letter typically includes details of the original contract, clear termination terms, final settlement arrangements, and mutual releases from future claims. It's particularly important in Indonesia's business environment where formal documentation of contract termination is necessary for legal certainty and risk management. The Release of Contract Letter should be carefully drafted to ensure it meets both legal requirements and practical business needs, especially considering Indonesia's civil law system and local business customs.
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1. Letter Head and Date: Complete business details of the party issuing the letter, including registered address and contact information, and the date of the letter
2. Recipient Details: Full name and address of the recipient party
3. Subject Line: Clear indication that this is a Release of Contract Letter with reference to the original contract
4. Original Contract Reference: Details of the original contract including date, parties involved, and contract reference number
5. Statement of Release: Clear and unambiguous statement declaring the mutual agreement to terminate the contract and release both parties from their obligations
6. Effective Date: Specific date from which the release takes effect
7. Final Settlement Terms: Statement regarding any final payments, returns of property, or other obligations that need to be fulfilled as part of the release
8. Signature Block: Space for authorized signatures from both parties, including names and titles
1. Mutual Release of Claims: Additional section when parties want to explicitly waive any future claims against each other
2. Confidentiality Continuation: Used when certain confidentiality obligations need to survive the termination
3. Partial Release Statement: Required when only specific parts of the contract are being released while others remain in effect
4. Return of Materials: Include when there are physical or digital materials that need to be returned or destroyed
5. Governing Law Reference: Optional reference to Indonesian law governance, particularly useful in cases involving international parties
1. Schedule A - Outstanding Payments: List of any final payments or financial settlements to be made between parties
2. Schedule B - Assets Register: List of any assets or materials to be returned or transferred between parties
3. Appendix 1 - Original Contract: Copy of the original contract being released
4. Appendix 2 - Authorization Documents: Copies of corporate authorizations or power of attorney if required
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Construction
Information Technology
Professional Services
Retail
Healthcare
Education
Financial Services
Real Estate
Energy
Transportation
Telecommunications
Mining
Agriculture
Hospitality
Relevant Teams
Legal
Procurement
Finance
Operations
Compliance
Risk Management
Human Resources
Commercial
Contract Administration
Business Development
Relevant Roles
Legal Counsel
Contract Manager
Procurement Manager
Business Development Manager
Project Manager
Chief Financial Officer
Chief Executive Officer
Operations Manager
Compliance Officer
Risk Manager
Human Resources Director
Commercial Director
General Manager
Supply Chain Manager
Account Manager
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