The Service Contract Termination document is essential for businesses and individuals operating in Indonesia who need to formally end their service arrangements. This document becomes necessary when parties decide to conclude their service relationship, whether due to contract completion, mutual agreement, breach of terms, or other circumstances specified in the original agreement. It is drafted in compliance with Indonesian law, particularly the Civil Code (KUHPerdata) and Law No. 24 of 2009 regarding language requirements. The document serves as a critical tool for managing legal and operational risks associated with contract termination, ensuring all parties have clarity regarding their rights, obligations, and the termination process. It includes provisions for final settlements, transition arrangements, and post-termination obligations, making it suitable for various types of service arrangements from simple to complex commercial relationships.
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1. Parties: Full legal names and addresses of all parties involved in the service contract
2. Background: Reference to the original service contract, its date, and key terms
3. Definitions: Definition of key terms used in the termination document
4. Termination Notice: Formal declaration of contract termination, citing the relevant termination clause from the original contract
5. Effective Date: Clear statement of when the termination takes effect
6. Outstanding Obligations: Details of any remaining payments, services, or deliverables that must be completed before or after termination
7. Return of Property: Requirements for returning any materials, equipment, or confidential information
8. Final Settlement: Terms for final payment and settlement of accounts
9. Mutual Release: Release of claims and liabilities between parties
10. Surviving Provisions: List of original contract provisions that will survive termination
11. Governing Law: Confirmation of Indonesian law as governing law and jurisdiction
1. Transition Arrangements: Used when there needs to be a handover period or transition of services to another provider
2. Non-Compete Obligations: Include when the original contract contains non-compete provisions that survive termination
3. Dispute Resolution: Include when there are specific procedures for resolving disputes related to the termination
4. Employee Transfers: Used when service contract termination involves transfer of employees
5. Intellectual Property Rights: Include when there are IP rights that need to be addressed post-termination
6. Force Majeure Declaration: Include if termination is due to force majeure events
7. Compensation for Early Termination: Include when early termination penalties or compensation apply
1. Schedule 1 - Outstanding Payments: Detailed list of all outstanding payments and financial settlements
2. Schedule 2 - Property Inventory: List of all properties, materials, or equipment to be returned
3. Schedule 3 - Completion Certificate: Form for certifying completion of all termination obligations
4. Appendix A - Original Contract Reference: Copy or extract of relevant sections from the original service contract
5. Appendix B - Handover Documentation: Ƶ and checklists for service handover if applicable
6. Appendix C - Release Forms: Standard forms for mutual release of obligations
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Facilities Management
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Financial Services
Real Estate
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Relevant Teams
Legal
Procurement
Operations
Finance
Compliance
Risk Management
Commercial
Business Development
Account Management
Vendor Management
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Legal Counsel
Contract Manager
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