Termination

It is usual to have a clause to specifically contract out of Article 1266/1267 of the Indonesian Civil Code which states that a notice of termination to the agreement by either party is not final and binding unless there is a court order confirming this. The proposed clause would be as follows:

 

In relation to the termination of this Agreement as referred in Section __, both Parties agreed to waive Articles 1266 and 1267 of the Civil Code in relation to the termination of this Agreement, so that the termination of this Agreement can be made lawful simply by giving a written notice to the other Party without have to wait for a decision from a Court, and the terminated party hereby agrees to waive any of its rights arising from it.

 

Untuk hal pemutusan Perjanjian sebagaimana dimaksud Pasal __, kedua belah pihak sepakat untuk mengesampingkan berlakunya Pasal 1266 dan 1267 Kitab Undang-Undang Hukum Perdata terhadap segala sesuatu yang bertalian dengan pemutusan Perjanjian ini, sehingga pemutusan Perjanjian dapat dilakukan berdasarkan hukum cukup dengan memberikan pemberitahuan tertulis dari satu Pihak kepada Pihak lainnya tanpa perlu menunggu adanya keputusan Pengadilan, serta pihak yang diputuskan dengan ini menyatakan menyetujui untuk melepaskan hak-hak yang timbul dari padanya.

 

For your reference, Articles 1266 and 1267:

 

Article 1266 - The condition of the dissolution of an agreement is always deemed as implied in a mutual agreement in the event that one of the parties does not comply with his obligation. In such event, the agreement does not automatically terminate by operation of the law, but must be requested through the court. This request must be also submitted, even if the agreement contains the dissolution condition.

 

If the dissolution is not provided in the agreement, the judge is free, by considering the circumstances, at the defenders request, to allow time for the defendant to comply his obligation, which time, however, may not exceed a period of one month.".

 

Article 1267 -Party that his/her agreement was not fulfilled, can decide, to force other Parties to fulfill the agreement, if it still can be conducted, or demanded the termination of agreement, with compensation of cost, losses and interest.