This Model Contract has been developed to serve as a standardized template for business relationships under Indonesian law. It is designed to be adaptable for various commercial arrangements while ensuring compliance with Indonesian legal requirements, including the Civil Code (KUH Perdata) and relevant regulations. The document addresses the need for a comprehensive yet flexible contract template that can be customized for different business contexts while maintaining legal validity in Indonesia. It includes provisions for bilingual execution when required by Law No. 24 of 2009, incorporates mandatory legal elements, and provides optional clauses for specific business scenarios. This Model Contract is particularly useful for businesses establishing new relationships in Indonesia or those seeking to standardize their contractual arrangements while ensuring local law compliance.
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1. Parties: Identification and details of the contracting parties, including their legal status and authority to contract
2. Background: Context and purpose of the agreement, including recitals explaining the parties' intentions
3. Definitions and Interpretation: Definitions of key terms and rules for interpreting the agreement
4. Scope of Agreement: Clear outline of what is covered by the contract and its primary objectives
5. Term and Duration: Period of the agreement, including commencement date and duration
6. Rights and Obligations: Core responsibilities and rights of each party under the agreement
7. Financial Terms: Payment terms, amounts, and financial obligations
8. Representations and Warranties: Statements of fact and promises made by each party
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. Force Majeure: Provisions for unforeseen circumstances preventing contract performance
11. Termination: Conditions and procedures for ending the agreement
12. Governing Law: Specification of Indonesian law as governing law and jurisdiction
13. Dispute Resolution: Procedures for resolving disputes, including arbitration provisions
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
15. Execution: Signature blocks and execution formalities
1. Intellectual Property Rights: Include when the contract involves IP creation, licensing, or transfer
2. Data Protection: Include when personal data processing is involved
3. Insurance: Include when specific insurance requirements need to be maintained
4. Performance Guarantees: Include when specific performance standards or guarantees are required
5. Anti-Corruption: Include for contracts with international parties or government entities
6. Environmental Compliance: Include when environmental considerations are relevant
7. Language Provisions: Include when contract is bilingual (Indonesian/English)
8. Change Control: Include when the contract involves projects or services that may require modifications
9. Subcontracting: Include when subcontracting rights need to be addressed
1. Schedule 1 - Scope of Work: Detailed description of services or deliverables
2. Schedule 2 - Pricing and Payment Terms: Detailed breakdown of prices, payment schedules, and mechanisms
3. Schedule 3 - Service Levels: Performance metrics and service level requirements
4. Schedule 4 - Key Personnel: List of key personnel and their roles
5. Schedule 5 - Technical Specifications: Detailed technical requirements or specifications
6. Appendix A - Required Forms: Standard forms used in contract administration
7. Appendix B - Compliance Requirements: Specific regulatory or compliance requirements
8. Appendix C - Contact Details: Contact information for key representatives of each party
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Retail
Services
Construction
Agriculture
Mining
Healthcare
Education
Transportation
Energy
Telecommunications
Financial Services
Consumer Goods
E-commerce
Relevant Teams
Legal
Compliance
Commercial
Procurement
Business Development
Operations
Risk Management
Corporate Secretariat
Executive Leadership
Project Management
Relevant Roles
Legal Counsel
Contract Manager
Business Development Manager
Compliance Officer
Corporate Secretary
Chief Legal Officer
Commercial Director
Procurement Manager
Operations Manager
Risk Manager
General Manager
Country Manager
Managing Director
Chief Executive Officer
Project Manager
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