The Agency Termination Letter is a crucial document used when a principal company wishes to formally end its commercial relationship with an appointed agent in Indonesia. This document must be drafted in accordance with Indonesian legal requirements, particularly the Civil Code and specific trade regulations governing agency relationships. The letter serves multiple purposes: it formally notifies the agent of the termination, specifies the effective date, outlines any outstanding obligations or final settlements, and details post-termination requirements. The document should reference the original agency agreement and include specific provisions required under Indonesian law, such as notice periods and settlement terms. Given Indonesia's specific requirements for commercial agency relationships, particular attention must be paid to compliance with local regulations and proper documentation of the termination process.
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1. Letter Header and Date: Complete business details of both parties including registered addresses and date of the letter
2. Reference Line: Reference to the original Agency Agreement including its date and any relevant agreement numbers
3. Formal Notice of Termination: Clear statement of intention to terminate the agency agreement
4. Legal Basis for Termination: Citation of the relevant clause from the original agreement or legal basis for termination
5. Effective Date: Specific date when the termination becomes effective, considering any notice period requirements
6. Outstanding Obligations: Statement regarding any pending commitments, payments, or transactions
7. Return of Materials: Requirements for returning company property, documents, or confidential information
8. Final Settlement Terms: Details of final commission payments or other financial settlements
9. Closing and Signature: Formal closing, signature blocks for authorized representatives
1. Transition Plan: Include when there's a need to specify how ongoing business will be handled during the transition period
2. Non-Compete Reminder: Include when the original agreement contained non-compete provisions that survive termination
3. Customer Transfer Process: Include when there's a need to specify how existing customers will be handled post-termination
4. Intellectual Property Rights: Include when there are specific IP rights or licenses that need to be addressed
5. Dispute Resolution Process: Include when there are ongoing disputes or specific termination-related conflicts to be resolved
6. Mutual Release Clause: Include when both parties agree to release each other from future claims
7. Surviving Obligations: Include when certain obligations from the original agreement survive termination
1. Schedule A - Outstanding Commissions: Detailed list of pending commissions and payment schedule
2. Schedule B - Company Property Inventory: List of all company property, materials, and documents to be returned
3. Schedule C - Ongoing Transactions: List of transactions in progress and their handling procedure
4. Appendix 1 - Transition Timeline: Detailed timeline for completing all termination-related activities
5. Appendix 2 - Client List: List of clients affected by the termination and their status
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Consumer Goods
Industrial Products
Technology
Pharmaceuticals
Automotive
Real Estate
Insurance
Financial Services
Telecommunications
Energy
Agriculture
Import/Export
Construction
Shipping and Logistics
Relevant Teams
Legal
Commercial Operations
Business Development
Sales
Compliance
Corporate Secretariat
Executive Leadership
Contract Administration
Distribution
International Trade
Relevant Roles
Commercial Director
Legal Counsel
Business Development Manager
Sales Director
Compliance Officer
Contract Manager
Chief Executive Officer
Managing Director
Corporate Secretary
Regional Manager
Operations Director
Channel Manager
Distribution Manager
Legal Manager
Commercial Operations Manager
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