Release Of Contract Letter Template for Indonesia

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Key Requirements PROMPT example:

Release Of Contract Letter

"I need a Release of Contract Letter for terminating a software development agreement with PT Tech Solutions, effective March 15, 2025, including provisions for the handover of source code and maintenance documentation."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

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

Industries
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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