The Agreement Cancellation Letter is a crucial document used when parties mutually or unilaterally decide to terminate an existing contractual relationship in Indonesia. This document must comply with Indonesian Civil Code (KUHPer) requirements and should be drafted in Indonesian language, though bilingual versions are permitted. The letter serves multiple purposes: it formally documents the termination decision, establishes the effective date of cancellation, outlines any remaining obligations or settlement terms, and provides for mutual release of future obligations. It's particularly important in business relationships where a clear record of agreement termination is necessary for legal and audit purposes. The document should be specific enough to prevent future disputes while maintaining professional relationships between the parties.
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1. Letter Header: Date, reference number, and formal letterhead including the sender's complete details
2. Recipient Details: Complete name and address of the recipient party
3. Subject Line: Clear indication that this is an Agreement Cancellation Letter with reference to the original agreement
4. Original Agreement Reference: Details of the agreement being cancelled including its title, date, and parties involved
5. Cancellation Statement: Clear and unambiguous statement of the intention to cancel the agreement
6. Effective Date: Specific date when the cancellation takes effect
7. Mutual Release: Statement releasing both parties from future obligations under the agreement
8. Signature Block: Space for authorized signatory's name, title, and signature
1. Outstanding Obligations: Section detailing any remaining obligations that need to be fulfilled by either party before or after cancellation
2. Return of Materials: Instructions regarding the return of any confidential information, materials, or property
3. Survival Clauses: Reference to any provisions from the original agreement that will survive the cancellation
4. Settlement Terms: If the cancellation involves any settlement or payment, details of such arrangements
5. Dispute Resolution: Optional clause regarding how any post-cancellation disputes will be handled
1. Copy of Original Agreement: Attachment of the agreement being cancelled for reference
2. Statement of Outstanding Amounts: If applicable, detailed list of any outstanding payments or financial obligations
3. Handover Schedule: If applicable, timeline and checklist for returning any materials or documents
4. Written Consent: If required, written consent from other parties or stakeholders regarding the cancellation
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