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Letter Of Cancellation Of Contract

Letter Of Cancellation Of Contract Template for Indonesia

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Key Requirements PROMPT example:

Letter Of Cancellation Of Contract

"I need a Letter of Cancellation of Contract to terminate our software development agreement with PT Tech Solutions due to repeated missed deadlines and quality issues, with the cancellation to take effect from March 1, 2025, including provisions for the return of our proprietary code and data."

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Document background
The Letter of Cancellation of Contract is a crucial legal instrument used in Indonesian business practice when one party needs to formally terminate an existing contractual relationship. This document is essential in situations where a contract needs to be terminated due to various circumstances such as breach of terms, mutual agreement, or completion of obligations. It must comply with the Indonesian Civil Code (KUH Perdata) and related regulations, requiring clear specification of the cancellation grounds, effective date, and any consequential arrangements. The letter serves as official documentation of the contract termination, protecting both parties' legal interests and ensuring proper closure of the contractual relationship. It should be drafted with careful attention to the original contract's termination clauses and Indonesian legal requirements for contract cancellation.
Suggested Sections

1. Letter Header: Full business letterhead including date, reference number, and proper addressing to the recipient

2. Subject Line: Clear indication that this is a Contract Cancellation Notice with reference to the specific contract

3. Contract Details: Identification of the contract being cancelled including date, parties involved, and contract reference number

4. Cancellation Statement: Clear and unambiguous statement of intent to cancel the contract

5. Legal Basis: Reference to the specific clause in the original contract or legal provision allowing for cancellation

6. Effective Date: Specification of when the cancellation takes effect

7. Outstanding Obligations: Statement regarding any remaining obligations or payments that need to be settled

8. Closing: Professional closing with signature block and company details

Optional Sections

1. Reason for Cancellation: Detailed explanation of the circumstances leading to cancellation - include when cancellation is due to breach or specific events

2. Transition Arrangements: Details of any handover process or transition period - include when services or goods need to be transferred

3. Dispute Resolution: Reference to dispute resolution procedures - include when there are ongoing disputes or potential claims

4. Confidentiality Reminder: Reminder of ongoing confidentiality obligations - include when sensitive information was shared during the contract

5. Return of Property: Instructions for returning any company property or materials - include when physical assets or documents need to be returned

Suggested Schedules

1. Original Contract Copy: Copy of the original contract being cancelled for reference

2. Breach Documentation: If cancellation is due to breach, documentation of the breach events and any prior notices

3. Payment Statement: Statement of any outstanding payments or financial reconciliation needed

4. Handover Schedule: Timeline and details for any transition or handover requirements

5. Previous Correspondence: Copies of relevant previous communications regarding 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

Construction

Information Technology

Professional Services

Retail

Real Estate

Healthcare

Education

Transportation

Energy

Telecommunications

Financial Services

Agriculture

Mining

Hospitality

Relevant Teams

Legal

Procurement

Operations

Administration

Compliance

Risk Management

Contract Management

Business Development

Corporate Secretariat

Executive Management

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Procurement Manager

Project Manager

Operations Director

Chief Executive Officer

Chief Legal Officer

Company Secretary

Commercial Director

Risk Manager

Compliance Officer

General Manager

Administrative Manager

Business Unit Head

Industries
Indonesian Civil Code (KUH Perdata) - Article 1338: Establishes the principle of freedom of contract and good faith in contractual relationships, including the right to terminate contracts under agreed terms
Indonesian Civil Code (KUH Perdata) - Article 1266: Governs the conditions for contract termination in bilateral agreements and the requirement for judicial intervention in certain cases
Indonesian Civil Code (KUH Perdata) - Article 1267: Specifies the rights of the party against whom the contract is breached, including the right to demand fulfillment or cancellation of the agreement
Law No. 8 of 1999 on Consumer Protection: Relevant if the contract cancellation involves consumer agreements, ensuring fair treatment and proper notification procedures
Government Regulation No. 82 of 2012 on Electronic Systems and Transactions: Applicable if the cancellation notice is to be delivered electronically, ensuring legal validity of electronic communications
Law No. 40 of 2007 on Limited Liability Companies: Relevant for corporate contracts, establishing requirements for corporate actions including contract terminations
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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