The Termination Of Agency Agreement 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 is essential when either party decides to terminate the agency relationship, whether due to breach of contract, mutual agreement, or other circumstances specified in the original agency agreement. It must comply with Indonesian Civil Code requirements and commercial regulations, particularly regarding notice periods and settlement terms. The letter serves multiple purposes: it officially documents the termination date, outlines final financial settlements, specifies the return of company property, addresses confidentiality obligations, and provides instructions for handling ongoing business matters. This document is particularly important in Indonesia's business environment, where formal documentation of commercial relationship changes is required for legal and regulatory compliance.
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1. Letter Header and Date: Complete business letter header including date, reference number, and addresses of both parties
2. Subject Line: Clear indication that this is a Termination of Agency Agreement
3. Original Agreement Reference: Details of the original agency agreement including date, parties, and any relevant registration numbers
4. Termination Notice: Clear statement of termination, including the effective date and reference to relevant termination clause from original agreement
5. Legal Basis: Reference to the contractual or legal basis for termination
6. Immediate Actions Required: List of immediate actions required from the agent (cease representing principal, return materials, etc.)
7. Final Account Settlement: Statement regarding final commission payments and account reconciliation
8. Acknowledgment Request: Request for countersignature or acknowledgment of receipt
9. Signature Block: Space for signature, name, and title of authorized representative
1. Transition Arrangements: Include when there needs to be a handover period or specific transition plan
2. Outstanding Disputes: Include if there are any ongoing disputes that need to be addressed
3. Non-Compete Reminder: Include if the original agreement contained non-compete provisions that survive termination
4. Inventory Return: Include if there are physical products, marketing materials, or other items to be returned
5. Confidentiality Reminder: Include if there are specific confidentiality obligations that survive termination
6. Customer Notification: Include if there are specific requirements regarding customer communication
1. Schedule A - Financial Settlement Statement: Detailed breakdown of final commission calculations and outstanding payments
2. Schedule B - Inventory List: List of all materials, products, or documents to be returned to the principal
3. Schedule C - Customer Transfer List: List of customers and ongoing transactions that need to be transferred or managed
4. Appendix 1 - Handover Checklist: Detailed checklist of all items and tasks that need to be completed as part of the termination process
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Manufacturing
Consumer Goods
Retail
Pharmaceuticals
Technology
Automotive
Construction
Industrial Equipment
Agriculture
Telecommunications
Financial Services
Insurance
Real Estate
Import/Export
Logistics
Relevant Teams
Legal
Sales
Commercial Operations
Business Development
Compliance
Corporate Secretariat
Risk Management
Distribution
Channel Management
Contract Administration
Relevant Roles
Chief Executive Officer
Managing Director
Commercial Director
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Contract Manager
Business Development Manager
Regional Manager
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Compliance Officer
Corporate Secretary
Sales Operations Manager
Channel Manager
Distribution Manager
Legal Manager
Risk Manager
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