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Contract And Release for Indonesia

Contract And Release Template for Indonesia

A Contract and Release agreement under Indonesian law is a dual-purpose legal document that establishes new contractual obligations while simultaneously releasing certain claims, rights, or obligations between the parties. This document must comply with Indonesian Civil Code (KUHPerdata) requirements and be drafted in the Indonesian language (with permitted bilingual versions). It combines elements of both a forward-looking contract and a release of past claims or obligations, making it particularly useful for business transitions, dispute resolutions, or relationship restructuring. The document must address specific Indonesian legal requirements regarding contract formation, consideration, and enforcement.

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What is a Contract And Release?

The Contract and Release agreement is a specialized legal instrument used in Indonesian business and legal practice when parties need to simultaneously establish new obligations while settling or releasing existing claims or obligations. This document type is particularly valuable in situations involving business restructuring, dispute resolution, employment terminations, or commercial relationship modifications. It must comply with Indonesian Civil Code requirements and include mandatory provisions regarding language (Indonesian, with permitted translations), governing law, and execution formalities. The document typically includes detailed sections on both the contractual obligations being created and the specific claims or rights being released, making it essential for clear drafting and comprehensive coverage of both aspects. This type of agreement is commonly used when parties wish to "clean slate" certain aspects of their relationship while establishing new terms moving forward.

What sections should be included in a Contract And Release?

1. Parties: Identification and details of all parties to the agreement, including their legal capacity and authority to enter into the contract

2. Background: Context of the relationship between the parties and circumstances leading to this agreement

3. Definitions: Clear definitions of key terms used throughout the agreement, including specific terms related to the release provisions

4. Scope of Contract: Detailed description of the contractual obligations and rights being established

5. Release Provisions: Specific details of what claims, rights, or obligations are being released by which party

6. Consideration: Clear statement of the consideration being provided in exchange for the release

7. Representations and Warranties: Statements of fact and promises made by each party regarding their capacity and authority to enter into the agreement

8. Effective Date and Duration: When the contract and release take effect and for how long they remain valid

9. Governing Law: Specification that Indonesian law governs the agreement and interpretation

10. Language Requirements: Statement regarding the language of the agreement and which version prevails (as per Law No. 24 of 2009)

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Contract And Release?

1. Non-Admission of Liability: Optional clause stating that the agreement does not constitute admission of liability by any party - typically used in dispute settlements

2. Confidentiality: Terms regarding confidentiality of the agreement and its terms - used when parties want to maintain privacy

3. Return of Property: Requirements for returning any property or documents - relevant when the relationship involved exchange of property

4. Non-Disparagement: Mutual agreements not to make negative statements about other parties - often used in employment or business relationship terminations

5. Dispute Resolution: Specific procedures for resolving future disputes - recommended for higher-value or complex relationships

6. Survival Clauses: Specification of which provisions survive the release - important when certain obligations should continue

7. Tax Implications: Addressing responsibility for any tax consequences - relevant when significant monetary consideration is involved

What schedules should be included in a Contract And Release?

1. Schedule A - Released Claims: Detailed list of specific claims, rights, or obligations being released

2. Schedule B - Excluded Claims: List of claims or rights specifically excluded from the release

3. Schedule C - Payment Schedule: Details of any payments or consideration to be provided, including timing and conditions

4. Appendix 1 - Related Agreements: List and/or copies of any related agreements referenced in the main document

5. Appendix 2 - Required Documents: Copies of supporting documents required for the release (e.g., board resolutions, powers of attorney)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Release Agreement

Cost

Free to use
Relevant legal definitions








































Clauses


































Relevant Industries

Manufacturing

Technology

Construction

Financial Services

Real Estate

Mining

Oil and Gas

Retail

Healthcare

Transportation

Agriculture

Professional Services

Education

Telecommunications

Entertainment

Relevant Teams

Legal

Human Resources

Compliance

Risk Management

Corporate Affairs

Executive Leadership

Operations

Finance

Business Development

Project Management

Contract Administration

Relevant Roles

Legal Counsel

Corporate Secretary

Chief Legal Officer

Compliance Officer

Human Resources Director

Chief Executive Officer

Chief Financial Officer

Risk Manager

Business Development Manager

Operations Director

Contract Administrator

Project Manager

General Manager

Settlement Officer

Relationship Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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