Termination Of Contract By Agreement Template for Indonesia

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Key Requirements PROMPT example:

Termination Of Contract By Agreement

"I need a Termination of Contract by Agreement under Indonesian law for a software development agreement with our vendor PT Tech Solutions, with the termination to take effect on March 1, 2025, including provisions for the handover of source code and ongoing maintenance support for 3 months."

Document background
The Termination of Contract by Agreement is a crucial legal document used in Indonesian business practice when parties mutually agree to end their contractual relationship before its natural conclusion or specified end date. This document is particularly important in the Indonesian legal context, where it must comply with the Civil Code (KUHPer) and related regulations governing contract termination. It's commonly used when business relationships need to be concluded amicably, when project objectives have been met earlier than anticipated, or when circumstances make continuation of the contract impractical for all parties. The agreement typically includes comprehensive provisions for winding down the relationship, handling outstanding obligations, and ensuring all parties are protected in accordance with Indonesian law. It's essential for maintaining good business relationships while providing legal certainty for all involved parties.
Suggested Sections

1. Parties: Identification of all parties to the termination agreement, including their legal names, addresses, and registration numbers

2. Background: References to the original contract, reason for termination, and confirmation of mutual agreement to terminate

3. Definitions: Definitions of key terms used in the termination agreement

4. Effective Date of Termination: Clear statement of when the original contract will terminate

5. Mutual Release: Parties' agreement to release each other from future obligations under the original contract

6. Settlement of Outstanding Obligations: Details of any remaining payments, services, or obligations to be fulfilled

7. Return of Property: Requirements for returning any physical or intellectual property

8. Confidentiality: Confirmation that confidentiality obligations survive termination

9. Governing Law: Confirmation of Indonesian law as governing law

10. Execution: Signature blocks and execution requirements

Optional Sections

1. Transition Arrangements: Details of any transitional period or handover requirements, used when service continuity is important

2. Survival Clauses: Specific clauses from the original agreement that will survive termination, used when certain obligations need to continue

3. Non-Compete/Non-Solicitation: Restrictions on future business activities, used when protecting business interests is crucial

4. Tax Provisions: Handling of tax matters related to the termination, used when significant financial settlements are involved

5. Public Announcements: Guidelines for announcing the termination, used for high-profile or public-facing contracts

6. Dispute Resolution: Specific procedures for resolving any future disputes, used when parties want to specify alternative dispute resolution methods

Suggested Schedules

1. Schedule 1 - Outstanding Payments: Detailed list of any outstanding payments or financial settlements

2. Schedule 2 - Property Inventory: List of properties or assets to be returned or transferred

3. Schedule 3 - Completion Checklist: Checklist of actions required to complete the termination process

4. Appendix A - Original Contract: Copy of the original contract being terminated

5. Appendix B - Settlement Calculations: Detailed calculations of any financial settlements or adjustments

6. Appendix C - Handover Plan: Detailed plan for transitioning any services or responsibilities

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

Technology

Construction

Retail

Professional Services

Financial Services

Healthcare

Education

Transportation

Energy

Telecommunications

Real Estate

Hospitality

Agriculture

Mining

Relevant Teams

Legal

Procurement

Operations

Finance

Compliance

Risk Management

Commercial

Business Development

Contract Administration

Corporate Secretariat

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Chief Executive Officer

Chief Operating Officer

Procurement Manager

Project Manager

Commercial Director

Compliance Officer

Risk Manager

General Manager

Operations Manager

Finance Director

Company Secretary

Legal 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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