Agreement For Supply Of Goods On Credit for Indonesia

Agreement For Supply Of Goods On Credit Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the supply of goods on a credit basis. The document outlines the credit arrangements, payment terms, delivery conditions, quality requirements, and security provisions while ensuring compliance with Indonesian commercial and contract law. It includes specific provisions for credit limits, payment schedules, security arrangements, and remedies in case of default, all structured within the framework of Indonesian legal requirements and business practices.

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What is a Agreement For Supply Of Goods On Credit?

The Agreement For Supply Of Goods On Credit is essential for businesses operating in Indonesia that engage in regular supply arrangements where immediate payment is not required. This document is particularly relevant in the current Indonesian business environment where credit-based transactions are increasingly common across various sectors. It provides a legal framework for managing credit-based supply relationships while ensuring compliance with Indonesian commercial law, including Law No. 7 of 2014 on Trade and relevant banking regulations. The agreement covers crucial aspects such as credit terms, security arrangements, quality standards, delivery requirements, and risk allocation, making it suitable for both domestic and international trade relationships within Indonesian jurisdiction. It's designed to protect both suppliers' and purchasers' interests while facilitating smooth commercial operations.

What sections should be included in a Agreement For Supply Of Goods On Credit?

1. Parties: Identification of the supplier and purchaser, including their full legal names, registration numbers, and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Supply Obligations: Details of the goods to be supplied, including specifications, quantities, and delivery requirements

5. Credit Terms: Payment terms, credit limit, interest rates, and payment schedule

6. Ordering Process: Procedures for placing and accepting orders

7. Delivery and Acceptance: Delivery terms, timeframes, inspection rights, and acceptance procedures

8. Quality Requirements: Quality standards, warranties, and quality control procedures

9. Title and Risk: Transfer of ownership and risk in the goods

10. Security Arrangements: Security provisions for the credit extended, including any charges or guarantees

11. Default and Remedies: Events of default and available remedies

12. Term and Termination: Duration of agreement and termination rights

13. General Provisions: Standard boilerplate clauses including governing law, notices, and dispute resolution

What sections are optional to include in a Agreement For Supply Of Goods On Credit?

1. Insurance: Insurance requirements - include when high-value goods are involved or specific insurance is required

2. Intellectual Property: IP rights and protection - include when goods involve proprietary technology or branded products

3. Confidentiality: Confidentiality obligations - include when sensitive information will be shared

4. Force Majeure: Force majeure provisions - include when supply chain disruptions are a significant risk

5. Personal Data Protection: Data protection provisions - include when personal data will be processed

6. Export/Import Requirements: International trade provisions - include for cross-border supply arrangements

7. Anti-Corruption: Anti-corruption compliance - include when dealing with government entities or high-risk jurisdictions

8. Parent Company Guarantee: Additional security - include when supplier/purchaser is a subsidiary and parent guarantee is required

What schedules should be included in a Agreement For Supply Of Goods On Credit?

1. Schedule 1 - Goods Specification: Detailed technical specifications of the goods to be supplied

2. Schedule 2 - Pricing and Payment Terms: Detailed pricing structure, credit limits, and payment schedule

3. Schedule 3 - Delivery Schedule: Agreed delivery timeframes and locations

4. Schedule 4 - Quality Standards: Detailed quality requirements and testing procedures

5. Schedule 5 - Form of Purchase Order: Standard form for placing orders under the agreement

6. Schedule 6 - Security Documents: Forms of any required security documents or guarantees

7. Appendix A - Contact Details: Key contact persons and their details for both parties

8. Appendix B - Compliance Requirements: Specific regulatory or compliance requirements applicable to the goods

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Wholesale Trade

Construction

Agriculture

Mining

Automotive

Electronics

Textiles

Food and Beverage

Industrial Equipment

Consumer Goods

Chemical Industry

Pharmaceutical

Relevant Teams

Legal

Procurement

Finance

Supply Chain

Credit Control

Risk Management

Operations

Commercial

Treasury

Compliance

Account Management

Relevant Roles

Procurement Manager

Supply Chain Director

Credit Controller

Commercial Director

Chief Financial Officer

Legal Counsel

Contract Manager

Finance Manager

Operations Director

Risk Manager

Treasury Manager

Purchasing Officer

Account Manager

Business Development Manager

Compliance Officer

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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