The Termination Of Business Relationship Letter is a crucial document used in Indonesian business practice when one party wishes to formally end a business relationship with another party. It is governed by Indonesian law, particularly the Civil Code (Kitab Undang-undang Hukum Perdata) and various commercial regulations. This document is essential when companies need to formally discontinue business partnerships, supplier relationships, distribution agreements, or other commercial arrangements. It should include clear identification of parties, reference to the original agreement, effective termination date, reason for termination, and any transition arrangements. The letter must comply with notice period requirements under Indonesian law and any specific termination provisions in the original agreement. It serves as official documentation of the termination decision and helps prevent future disputes by clearly stating the terms of the business relationship's conclusion.
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1. Letter Head: Company letterhead including full legal name, address, and contact details of the sending party
2. Date: Current date of the letter in the formal Indonesian format
3. Reference Number: Internal reference number for tracking and future correspondence
4. Recipient Details: Full name, title, company name, and complete address of the receiving party
5. Subject Line: Clear indication that this is a termination notice with reference to the specific business relationship
6. Opening Salutation: Formal greeting to the appropriate contact person
7. Reference to Existing Agreement: Details of the current business relationship and relevant agreement(s), including dates and reference numbers
8. Termination Statement: Clear and unambiguous statement of intent to terminate the business relationship
9. Effective Date: Specific date when the termination becomes effective, considering any notice periods required by the original agreement
10. Reason for Termination: Brief, professional explanation for the termination decision
11. Closing Statement: Professional closure including any appreciation for past business
12. Signature Block: Full name, title, and signature of authorized representative
1. Outstanding Obligations: Used when there are pending payments, deliveries, or other obligations that need to be addressed
2. Transition Arrangements: Include when specific arrangements are needed for smooth transition of business
3. Confidentiality Reminder: Used when there are ongoing confidentiality obligations that survive termination
4. Return of Property: Include when there is company property, documents, or materials that need to be returned
5. Non-Compete/Non-Solicitation: Used when reminding the other party of any post-termination restrictions
6. Dispute Resolution: Include when specific dispute resolution procedures need to be outlined
7. Final Account Settlement: Used when there needs to be a detailed accounting of final payments or settlements
1. Original Agreement Reference: Copy or extract of relevant sections from the original business agreement
2. Statement of Outstanding Accounts: Detailed list of any pending financial matters
3. Transition Plan: Detailed timeline and steps for business transition
4. Asset/Property List: Inventory of items to be returned or transferred
5. Final Settlement Statement: Detailed breakdown of final payments or settlements
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Trade and Distribution
Technology
Financial Services
Construction
Retail
Healthcare
Professional Services
Transportation and Logistics
Agriculture
Mining
Energy
Telecommunications
Real Estate
Hospitality
Education
Consumer Goods
Industrial Services
Relevant Teams
Legal
Procurement
Operations
Business Development
Commercial
Supply Chain
Vendor Management
Contract Administration
Compliance
Corporate Secretariat
Account Management
Business Relations
Risk Management
Relevant Roles
Chief Executive Officer
Managing Director
Chief Operating Officer
Business Development Manager
Procurement Manager
Contract Manager
Legal Counsel
Corporate Secretary
Operations Director
Commercial Director
Supply Chain Manager
Vendor Relations Manager
Account Manager
Partnership Manager
General Manager
Head of Legal
Compliance Officer
Business Unit Head
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