Document background
The Termination of Distribution Agreement is a crucial document used when parties wish to formally end their distribution relationship in Indonesia. It is typically employed when both parties mutually agree to cease their business relationship, or when one party exercises their right to terminate under the original distribution agreement. This document must comply with Indonesian law, particularly the Civil Code (Kitab Undang-undang Hukum Perdata) and relevant Ministry of Trade regulations. It addresses key aspects such as the termination date, settlement of accounts, inventory management, and ongoing obligations. The agreement is essential for ensuring a clear and legally compliant closure of the distribution relationship while protecting both parties' interests and maintaining good business practices in accordance with Indonesian commercial regulations.
