The Termination And Mutual Release Agreement is essential for businesses operating in Indonesia who wish to formally conclude their contractual relationships while protecting themselves from future claims or liabilities. This document type is commonly used when parties want to end commercial arrangements such as distribution agreements, service contracts, joint ventures, or other business relationships in a mutually agreeable manner. It must comply with Indonesian legal requirements, including the Indonesian Civil Code (KUHPerdata) and Law No. 24 of 2009 regarding language requirements. The agreement typically includes comprehensive releases, final settlement terms, and provisions for the return or destruction of confidential information, while clearly stating which obligations survive the termination. It's particularly valuable in situations where parties want to ensure a clean break while maintaining professional relationships and minimizing the risk of future disputes.
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1. Parties: Identification of all parties to the agreement, including their legal details and authorized representatives
2. Background: Recitals describing the existing relationship between the parties, reference to the agreement(s) being terminated, and the parties' desire to terminate and release each other
3. Definitions: Definitions of key terms used throughout the agreement, including 'Effective Date', 'Original Agreement', and 'Claims'
4. Termination: Clear statement of termination of the original agreement(s), specifying the effective date and immediate consequences
5. Mutual Release: Comprehensive mutual releases from claims, liabilities, and obligations, with clear scope and any exceptions
6. Surviving Obligations: Identification of any provisions from the original agreement that will survive termination
7. Settlement of Accounts: Details of any final payments, reconciliations, or financial settlements between the parties
8. Return of Property: Requirements for return or destruction of confidential information, materials, or property
9. Representations and Warranties: Basic representations regarding authority to enter agreement and understanding of releases
10. Confidentiality: Ongoing obligations regarding confidentiality of the termination agreement and any surviving confidentiality obligations
11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
12. General Provisions: Standard boilerplate including entire agreement, amendments, counterparts, and notices provisions
1. Non-Disparagement: Mutual obligations not to make negative statements about each other, useful in high-profile or contentious terminations
2. Cooperation: Provisions for transition assistance or future cooperation, relevant when ongoing interaction is necessary
3. Tax Provisions: Specific tax-related provisions if the termination involves significant financial settlements
4. Public Announcements: Controls on public statements about the termination, important for listed companies or high-profile relationships
5. Insurance: Provisions regarding ongoing insurance obligations or claims, relevant for contracts with significant liability aspects
6. Employee Matters: Provisions dealing with employee transfers or notifications, relevant when termination affects employment relationships
7. Intellectual Property: Specific provisions regarding IP rights post-termination, important for technology or creative services agreements
1. Schedule 1 - Original Agreement(s): Copy or list of all agreements being terminated
2. Schedule 2 - Settlement Statement: Detailed breakdown of any financial settlements, payments, or reconciliations
3. Schedule 3 - Return of Property Checklist: List of items, documents, or materials to be returned or destroyed
4. Schedule 4 - Surviving Obligations: Detailed list of specific provisions that survive termination
5. Appendix A - Form of Public Announcement: Template or agreed form of any public statements, if applicable
6. Appendix B - Certificate of Destruction: Template for confirming destruction of confidential information or materials
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