The Non-Refundable Deposit Agreement is a critical document used in Indonesian business transactions where one party needs to secure a commitment from another through a non-returnable deposit payment. This agreement type is commonly used in various sectors including real estate, manufacturing, and service industries, where securing commitment from parties is essential. The document, governed by Indonesian law, particularly the Civil Code (KUHPerdata) and relevant consumer protection regulations, outlines the deposit amount, payment terms, the specific circumstances under which the deposit is non-refundable, and its relationship to the main transaction. It serves as a risk management tool while providing legal certainty for both parties involved in the transaction.
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1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and any registration numbers for companies
2. Background: Context of the agreement, including the purpose of the deposit and the underlying transaction it relates to
3. Definitions: Key terms used throughout the agreement, including 'Deposit', 'Completion Date', and other relevant terms
4. Deposit Amount and Payment: Specifies the deposit amount, payment method, and deadline for payment
5. Non-Refundable Nature: Clear statement of the non-refundable nature of the deposit and specific circumstances under which this applies
6. Purpose of Deposit: Detailed explanation of what the deposit secures and its relationship to the main transaction
7. Representations and Warranties: Basic warranties from both parties regarding their capacity to enter into the agreement and understanding of its terms
8. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and determines jurisdiction for disputes
9. Execution: Signature blocks and execution requirements
1. Conditions Precedent: Used when the deposit arrangement is subject to specific conditions being met before becoming effective
2. Default Events: Include when there are specific circumstances beyond non-payment that constitute default
3. Force Majeure: Include for longer-term deposit arrangements where external events might affect the agreement
4. Tax Provisions: Include when the deposit amount is substantial and has tax implications
5. Assignment: Include when either party might need to transfer their rights under the agreement
6. Notices: Include when formal communication procedures need to be established between parties
7. Dispute Resolution: Include when parties wish to specify alternative dispute resolution methods before court proceedings
1. Schedule 1 - Payment Details: Bank account details and payment instructions for the deposit
2. Schedule 2 - Timeline: Key dates including deposit payment deadline and related transaction milestones
3. Appendix A - Related Transaction Documents: List and/or copies of documents relating to the main transaction the deposit is securing
4. Appendix B - Specific Conditions: Any specific conditions or circumstances affecting the non-refundable nature of the deposit
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