The Termination Of Contract Form is a crucial legal instrument used in Indonesian business practices when parties need to formally end their contractual relationships. This document becomes necessary when parties mutually agree to terminate their existing contract, when a contract needs to be terminated due to breach or non-performance, or when circumstances necessitate an early termination of contractual obligations. It is designed to comply with Indonesian legal requirements, particularly the Indonesian Civil Code (KUH Perdata) and relevant sector-specific regulations. The document includes essential provisions for termination procedures, settlement of obligations, and post-termination arrangements, while providing clear documentation of the parties' agreement to end their contractual relationship. It serves as a vital tool for risk management and legal compliance in Indonesian business operations.
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1. Title and Date: Clear identification of the document as a Contract Termination Agreement with the date of execution
2. Parties: Full legal names and addresses of all parties involved in the original contract
3. Background: Reference to the original contract including its date and purpose, and brief statement of the intention to terminate
4. Definitions: Key terms used in the termination agreement, including reference to defined terms from the original contract that remain relevant
5. Termination Declaration: Clear statement of the mutual agreement to terminate the contract
6. Effective Date: Specific date when the termination becomes effective
7. Settlement of Outstanding Obligations: Details of any remaining payments, services, or obligations to be fulfilled by either party
8. Mutual Release: Release of parties from future obligations under the original contract, subject to any surviving provisions
9. Return of Property: Requirements for returning any physical or intellectual property belonging to either party
10. Confidentiality: Confirmation that confidentiality obligations from the original agreement survive termination
11. Governing Law: Confirmation that Indonesian law governs the termination agreement
12. Execution: Signature blocks for all parties
1. Surviving Provisions: List of specific provisions from the original contract that will survive termination - include if any provisions need to continue
2. Dispute Resolution: Specific procedures for resolving any disputes related to the termination - include if not covered in original agreement
3. Non-Disparagement: Mutual agreement not to make negative statements about each other - include for sensitive commercial relationships
4. Future Cooperation: Terms for any transitional assistance or future cooperation - include if there's an ongoing business relationship
5. Tax Provisions: Handling of tax implications of the termination - include if significant tax consequences exist
6. Employee Matters: Provisions relating to employee transfers or protections - include if employment relationships are affected
7. Insurance Claims: Handling of existing or potential insurance claims - include if insurance matters are relevant
1. Schedule A - Outstanding Payments: Detailed list of any outstanding payments or financial settlements between the parties
2. Schedule B - Property Inventory: List of physical or intellectual property to be returned or transferred
3. Schedule C - Completion Checklist: Checklist of actions required to complete the termination process
4. Appendix 1 - Original Contract: Copy of the original contract being terminated
5. Appendix 2 - Settlement Calculation: Detailed calculations of any settlement amounts, if applicable
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Retail
Construction
Professional Services
Financial Services
Healthcare
Energy
Transportation
Telecommunications
Real Estate
Agriculture
Education
Hospitality
Mining
Relevant Teams
Legal
Procurement
Operations
Commercial
Compliance
Risk Management
Finance
Supply Chain
Vendor Management
Business Development
Contract Administration
Relevant Roles
Legal Counsel
Contract Manager
Procurement Manager
Business Development Manager
Commercial Director
Chief Legal Officer
Operations Manager
Project Manager
Compliance Officer
Risk Manager
Chief Executive Officer
Chief Financial Officer
Supply Chain Manager
Vendor Relations Manager
Account Manager
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