The Intent To Terminate Contract Letter is a crucial document used in Indonesian business practice when a party wishes to formally end a contractual relationship. It must comply with Indonesian Civil Code (KUHPerdata) requirements and any specific provisions in the original contract regarding termination notices. This document is typically used when a party needs to provide advance notice of termination, whether for convenience or cause, and serves as official documentation of the termination process. It should include specific reference to the original contract, clear termination date, and any relevant legal bases for termination under Indonesian law. The letter may also address transition arrangements, outstanding obligations, and ongoing commitments that survive termination.
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1. Letter Header: Full company details of the sender including registered address and contact information
2. Date: The formal date of the termination notice
3. Recipient Details: Full name, title, and address of the recipient
4. Subject Line: Clear indication that this is a notice of intent to terminate contract with reference number
5. Contract Reference: Specific details of the contract being terminated including date, parties, and contract reference number
6. Statement of Intent: Clear statement of intention to terminate the contract
7. Legal Basis: Reference to relevant termination clause in the original contract or applicable law
8. Termination Date: Specific proposed date when the termination will take effect
9. Formal Closing: Professional closing with full name, title, and signature of the authorized representative
1. Reason for Termination: Include when the termination is for cause or when explanation would help maintain business relationships
2. Outstanding Obligations: List of any remaining obligations, payments, or deliverables that need to be addressed before termination
3. Transition Arrangements: Include when there needs to be a handover process or transition period
4. Confidentiality Reminder: Reference to ongoing confidentiality obligations that survive termination
5. Request for Acknowledgment: Include when formal confirmation of receipt is required
6. Dispute Resolution: Include when there are existing disputes or potential areas of disagreement
1. Schedule of Outstanding Items: Detailed list of pending deliverables, payments, or obligations
2. Copy of Original Contract: Attachment of the original contract being terminated for reference
3. Transition Plan: If applicable, detailed timeline and responsibilities for transition period
4. Proof of Breach: If termination is due to breach, documentation of the breach events
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