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Cancellation Letter To Vendor Template for Indonesia

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Cancellation Letter To Vendor

"I need to draft a Cancellation Letter To Vendor for our IT service provider due to consistent performance issues, with the termination to take effect from March 1, 2025, including requirements for the handover of all system access and data."

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What is a Cancellation Letter To Vendor?

The Cancellation Letter To Vendor is an essential business document used in the Indonesian market when a company needs to formally terminate its relationship with a supplier or service provider. This document is particularly important in the Indonesian business context, where formal written communication is crucial for legal validity and business records. The letter must comply with Indonesian contract law, specifically the Civil Code (KUH Perdata), and should be drafted to maintain professional relationships while clearly communicating the termination decision. It typically includes reference to the original agreement, reason for cancellation, effective date, and any closing procedures. This document is commonly used when services are no longer required, when changing vendors, or when addressing performance issues, and serves as a crucial legal record of the contract termination.

What sections should be included in a Cancellation Letter To Vendor?

1. Letterhead and Date: Company letterhead with complete business details and current date

2. Recipient Details: Complete vendor information including company name, address, and contact person

3. Reference Line: Reference to the original contract/agreement number and date

4. Subject Line: Clear indication that this is a contract/service cancellation notice

5. Opening Statement: Formal greeting and clear statement of the letter's purpose

6. Contract Details: Specific details of the contract being cancelled including date of original agreement and key terms

7. Reason for Cancellation: Brief, professional explanation of the cancellation reason

8. Effective Date: Clear statement of when the cancellation takes effect

9. Final Instructions: Details regarding final payments, return of materials, or other closing procedures

10. Closing: Professional closing with contact information for further communication

What sections are optional to include in a Cancellation Letter To Vendor?

1. Transition Plan: Include when there needs to be a handover of work or materials to another vendor

2. Outstanding Payments: Include when there are pending financial matters to be resolved

3. Confidentiality Reminder: Include when the original agreement contained confidentiality provisions that survive termination

4. Legal References: Include when cancellation is based on specific contract terms or legal provisions

5. Future Cooperation: Include when maintaining a positive relationship for potential future business is desired

What schedules should be included in a Cancellation Letter To Vendor?

1. Payment Settlement Schedule: Detailed breakdown of any final payments or refunds

2. Asset Return List: Inventory of any materials or assets to be returned

3. Service Transition Timeline: Timeline for transitioning services if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















Clauses














Relevant Industries

Manufacturing

Retail

Technology

Construction

Food and Beverage

Healthcare

Professional Services

Telecommunications

Financial Services

Logistics and Supply Chain

Energy

Mining

Agriculture

Education

Relevant Teams

Procurement

Legal

Operations

Finance

Supply Chain

Vendor Management

Administration

Compliance

Commercial

Contract Management

Relevant Roles

Procurement Manager

Supply Chain Director

Vendor Relations Manager

Contract Administrator

Legal Counsel

Operations Manager

Chief Financial Officer

Purchasing Officer

Business Unit Manager

Project Manager

Supply Chain Analyst

Commercial Director

Chief Operations Officer

Administrative Manager

Compliance Officer

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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