A Side Agreement is a crucial legal instrument in Indonesian business practice, used when parties need to modify, clarify, or supplement terms of an existing agreement without undertaking a complete revision. This document type is particularly valuable when changes are required to address specific aspects of the business relationship or to comply with new regulatory requirements, while maintaining the overall structure of the original agreement. Under Indonesian law, the Side Agreement must be drafted in compliance with the Indonesian Civil Code (KUHPerdata) and must include an Indonesian language version as per Law No. 24 of 2009. The document typically includes references to the original agreement, specific modifications or additions, and clear statements about how it interacts with the main agreement. It's commonly used in situations requiring quick adaptation to changing business circumstances or when parties need to formalize additional arrangements without disturbing the main agreement's framework.
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1. Parties: Identification of all parties to the side agreement, ensuring they match or are related to the parties in the main agreement
2. Background: Context of the side agreement, including reference to the main agreement and reasons for this side agreement
3. Definitions: Key terms used in the agreement, including reference to definitions in the main agreement where applicable
4. Relationship with Main Agreement: Clear statement of how this side agreement relates to and impacts the main agreement
5. Scope of Modification: Specific details of what is being modified, added, or clarified in relation to the main agreement
6. Duration and Effect: Period of effectiveness and whether the side agreement survives termination of the main agreement
7. Confidentiality: Provisions regarding the confidential nature of the side agreement and its contents
8. Governing Law: Confirmation of Indonesian law as governing law and any specific jurisdictional requirements
9. Language: Language requirements in accordance with Law No. 24 of 2009, specifying Indonesian language requirements
10. Execution: Signature blocks and execution requirements
1. Additional Representations and Warranties: Used when new representations or warranties are needed beyond those in the main agreement
2. Payment Terms: Include when the side agreement involves financial modifications or new payment arrangements
3. Performance Metrics: When the side agreement modifies or establishes specific performance criteria
4. Dispute Resolution: Include if different dispute resolution mechanisms are required from the main agreement
5. Force Majeure: Include if new force majeure provisions are needed specific to the subject matter of the side agreement
6. Intellectual Property: When the side agreement involves IP rights not covered in the main agreement
7. Notice Provisions: Include if different notice requirements are needed from those in the main agreement
1. Schedule A - Original Agreement Reference: Relevant excerpts or references from the main agreement being modified
2. Schedule B - Modified Terms: Detailed description of specific terms being modified, added, or clarified
3. Schedule C - Timeline: Implementation timeline or schedule of modifications if applicable
4. Appendix 1 - Supporting Documents: Any additional documents supporting the modifications or changes
5. Appendix 2 - Compliance Requirements: Any specific regulatory or compliance requirements related to the modifications
Authors
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology
Financial Services
Energy and Resources
Infrastructure
Real Estate
Telecommunications
Retail and Consumer
Healthcare
Agriculture
Mining
Transportation and Logistics
Relevant Teams
Legal
Compliance
Commercial
Finance
Operations
Risk Management
Corporate Secretariat
Business Development
Project Management
Procurement
Internal Audit
Relevant Roles
Legal Counsel
Contract Manager
Business Development Manager
Chief Legal Officer
Compliance Officer
Corporate Secretary
Commercial Director
Chief Financial Officer
Project Manager
Operations Director
Risk Manager
General Manager
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