The Auto Rescission Letter serves as a critical legal instrument in Indonesian business practice, designed to facilitate the automatic termination of contracts when specific trigger events occur. This document type is particularly valuable in situations where parties have agreed in advance that certain circumstances would automatically void their contractual relationship. It must comply with Indonesian Civil Code requirements and typically includes precise details about the original contract, the triggering event, and the legal basis for rescission. The document is commonly used in various commercial contexts, from real estate transactions to service agreements, where automatic termination provisions have been pre-negotiated. Its effectiveness relies on clear documentation of the triggering event and proper service according to Indonesian legal requirements.
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1. Letter Header: Date, recipient's complete name and address, and reference number if applicable
2. Subject Line: Clear indication that this is an Auto Rescission Notice for [specified contract]
3. Contract Reference: Details of the original contract including date, parties, and contract number
4. Rescission Trigger: Clear statement of the condition or event that has triggered the automatic rescission
5. Legal Basis: Reference to relevant contract clause and/or legal provisions allowing for automatic rescission
6. Effective Date: Specification of when the rescission takes effect
7. Closing Statement: Formal closing of the letter including any required acknowledgment requests
8. Signature Block: Signature, name, and title of the authorized representative
1. Outstanding Obligations: Include when there are remaining obligations or payments to be settled
2. Return of Property: Include when physical items or documents need to be returned
3. Confidentiality Reminder: Include when the original contract contained confidentiality obligations that survive termination
4. Dispute Resolution: Include when there's a need to specify dispute resolution procedures
5. Transition Arrangements: Include when temporary arrangements are needed post-rescission
1. Evidence of Trigger Event: Documentation proving the occurrence of the event triggering the automatic rescission
2. Payment Statement: Statement of any outstanding payments or financial reconciliation if applicable
3. Asset Register: List of any properties or assets to be returned, if applicable
4. Original Contract: Copy of the original contract highlighting the auto-rescission clause
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