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The Acknowledgement Letter For Termination of Contract is a crucial document used in Indonesian business practice when parties wish to formally document their mutual agreement to end a contractual relationship. It is particularly important in the Indonesian legal context, where formal documentation of business relationships is highly valued and required under the Indonesian Civil Code (KUHPer). This document should be used when both parties have agreed to terminate their contract and need to formally acknowledge this agreement in writing. It typically includes references to the original contract, the agreed termination date, any final obligations or outstanding matters, and must be written in Indonesian (though bilingual versions are permitted). The document helps ensure smooth contract closure and provides legal certainty for all parties involved, which is especially important given Indonesia's civil law system where written documentation carries significant weight.

1. Letter Header: Date, reference number, and formal letterhead details

2. Recipient Details: Full name and address of the recipient party

3. Subject Line: Clear indication that this is an acknowledgement of contract termination, including reference to the original contract

4. Opening Salutation: Formal greeting to the appropriate contact person

5. Reference to Original Contract: Details of the original contract including its date, parties, and subject matter

6. Acknowledgement of Termination: Clear statement acknowledging the mutual agreement to terminate the contract

7. Effective Date: Specific mention of when the termination takes effect

8. Final Obligations: Statement of any remaining obligations or immediate actions required by either party

9. Closing Statement: Formal closing confirming mutual understanding and agreement

10. Signature Block: Space for signatures, names, and titles of authorized representatives from both parties