The Termination of Agency Agreement is a crucial document used when ending a commercial agency relationship in Indonesia. It is particularly relevant when companies need to formally conclude their agency arrangements due to various circumstances such as business restructuring, performance issues, or strategic changes. The document must comply with Indonesian law, particularly the Civil Code (KUHPerdata) and Commercial Code (KUHD), and typically includes provisions for final settlements, handover procedures, and post-termination obligations. This agreement is essential for protecting both parties' interests and ensuring a clear legal record of the termination, while addressing specific requirements under Indonesian agency and commercial law. It's commonly used by both domestic and international companies operating in Indonesia through commercial agents.
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1. Parties: Identification of the Principal and Agent, including their full legal names, registration numbers, and addresses
2. Background: Context of the original agency agreement, its date, and the reason for termination
3. Definitions: Key terms used in the agreement, including references to the Original Agency Agreement
4. Termination: Formal termination clause specifying the effective date and basis of termination
5. Final Accounting: Provisions for final commission payments, outstanding invoices, and financial settlements
6. Handover Obligations: Requirements for returning documents, materials, and property belonging to the Principal
7. Confidentiality: Ongoing obligations regarding confidential information and trade secrets
8. Non-Compete and Non-Solicitation: Post-termination restrictions on business activities and customer contact
9. Mutual Release: Release of claims between parties, subject to the terms of the termination agreement
10. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
1. Transition Period: Terms for a handover period if required for business continuity
2. Inventory Handling: Procedures for dealing with remaining inventory if the agent held stock
3. Customer Notification: Process for informing customers about the termination of the agency relationship
4. Intellectual Property Rights: Specific provisions regarding the use of trademarks and other IP post-termination
5. Outstanding Disputes: Resolution of any existing disputes between the parties
6. Severance Payment: Terms of any compensation or severance payment if applicable under Indonesian law
7. Insurance: Provisions regarding the maintenance of insurance coverage during any transition period
1. Schedule 1 - Original Agency Agreement: Copy or details of the original agency agreement being terminated
2. Schedule 2 - Final Commission Statement: Detailed calculation of final commissions and outstanding payments
3. Schedule 3 - Handover Schedule: List of items, documents, and materials to be returned to the Principal
4. Schedule 4 - Customer List: List of customers and ongoing transactions requiring handling
5. Schedule 5 - Settlement Statement: Comprehensive statement of all financial settlements between the parties
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Pharmaceutical
Technology
Automotive
Industrial Equipment
Chemical
Retail
Agriculture
Construction
Import/Export
Telecommunications
Financial Services
Insurance
Relevant Teams
Legal
Commercial
Business Development
Sales
Compliance
Operations
Corporate Secretariat
Risk Management
International Business
Distribution
Relevant Roles
Legal Director
Commercial Director
Business Development Manager
Chief Executive Officer
Country Manager
Legal Counsel
Compliance Officer
Sales Director
Contract Manager
Regional Director
Managing Director
Company Secretary
Chief Operating Officer
Distribution Manager
Agency Relations Manager
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