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Cancellation Offer Letter

Cancellation Offer Letter Template for Indonesia

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Key Requirements PROMPT example:

Cancellation Offer Letter

"I need a Cancellation Offer Letter for terminating a manufacturing supply agreement with our Indonesian supplier PT Sejahtera Manufacturing, proposing termination effective March 1, 2025, with a 3-month transition period for finding alternative suppliers."

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Document background
The Cancellation Offer Letter is a crucial business document used in Indonesian commercial practice when one party wishes to initiate the termination of an existing contract. It serves as a formal proposal to end a contractual relationship and is commonly used in situations where early termination is desired, or circumstances have changed significantly since the original agreement. The document must comply with Indonesian legal requirements, particularly the Indonesian Civil Code (KUH Perdata) and related commercial regulations. It typically includes details about the original agreement, reasons for cancellation, proposed settlement terms, and timeline for response. The letter should be drafted carefully to maintain professional relationships while protecting legal interests, and often requires bilingual presentation (Indonesian and English) to comply with Law No. 24 of 2009.
Suggested Sections

1. Letterhead and Date: Company letterhead with complete business details and current date

2. Reference Number: Unique letter reference number following company's documentation system

3. Recipient Details: Full name, title, and address of the recipient including company name if applicable

4. Subject Line: Clear indication that this is a Cancellation Offer Letter with reference to the original agreement

5. Formal Greeting: Appropriate business greeting in both Indonesian and English

6. Original Agreement Reference: Details of the agreement proposed to be cancelled, including date, parties, and subject matter

7. Cancellation Proposal: Clear statement of the offer to cancel the agreement and proposed effective date

8. Reasoning: Brief explanation of the reasons for proposing the cancellation

9. Terms of Cancellation: Key terms including any financial settlements, return of property, or ongoing obligations

10. Response Timeline: Deadline for responding to the offer and method of acceptance

11. Closing: Formal closing, signature block, and company stamp (if required)

Optional Sections

1. Confidentiality Statement: Include when the cancellation involves sensitive business information or trade secrets

2. Mutual Release Clause: Include when parties wish to release each other from future claims

3. Transition Arrangements: Include when the cancellation requires handover of work or materials

4. Outstanding Payments: Include when there are financial matters to be settled

5. Regulatory Compliance: Include when cancellation must comply with specific industry regulations

6. Language Disclaimer: Include when the letter is bilingual (Indonesian/English) to specify which version prevails

Suggested Schedules

1. Schedule A - Financial Settlement: Detailed breakdown of any financial settlements or payments required

2. Schedule B - Timeline: Detailed timeline for the cancellation process and key milestones

3. Schedule C - Asset Register: List of any assets or materials to be returned or transferred

4. Appendix 1 - Original Agreement: Copy of the original agreement referenced in the cancellation offer

5. Appendix 2 - Supporting Documents: Any relevant supporting documents justifying the cancellation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Manufacturing

Retail

Technology

Financial Services

Construction

Mining

Agriculture

Telecommunications

Healthcare

Education

Professional Services

Logistics

Real Estate

Energy

Consumer Goods

Relevant Teams

Legal

Procurement

Operations

Commercial

Business Development

Risk Management

Compliance

Corporate Affairs

Contract Administration

Finance

Project Management

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Chief Executive Officer

Chief Operating Officer

Commercial Director

Procurement Manager

Project Manager

Account Manager

Operations Manager

Risk Manager

Compliance Officer

General Manager

Corporate Secretary

Head of Legal

Industries
Indonesian Civil Code (KUH Perdata): The fundamental law governing contracts and agreements in Indonesia, particularly Articles 1381-1456 which deal with the termination and cancellation of agreements
Law No. 8 of 1999 on Consumer Protection: Relevant when the cancellation involves consumer contracts, ensuring fair treatment and proper notification procedures
Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution: Governs dispute resolution mechanisms that may arise from contract cancellation
Law No. 24 of 2009 on National Flag, Language, Emblem and Anthem: Article 31 requires agreements involving Indonesian parties to be written in Indonesian language
Government Regulation No. 42 of 2007: Regulates franchise agreements and their termination procedures, relevant if the cancellation involves a franchise relationship
Law No. 40 of 2007 on Limited Liability Companies: Relevant when the cancellation involves agreements between corporate entities, particularly regarding authority to terminate contracts
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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