Auto Sales Agreement Template for Indonesia

A comprehensive legal document governed by Indonesian law that formalizes the sale and purchase of a motor vehicle between parties. This agreement encompasses all essential aspects of the transaction, including vehicle specifications, payment terms, ownership transfer requirements, and warranties, while ensuring compliance with Indonesian consumer protection laws and vehicle registration regulations. The document provides legal protection for both parties and includes provisions for dispute resolution under Indonesian jurisdiction.

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What is a Auto Sales Agreement?

The Auto Sales Agreement is a crucial legal document used in Indonesia to formalize and document the sale and purchase of motor vehicles. It is designed to comply with Indonesian legal requirements, including the Civil Code, Consumer Protection Law, and relevant transportation regulations. This agreement is essential for both new and used vehicle sales, providing clear documentation of the transaction terms, vehicle specifications, warranty conditions, and ownership transfer requirements. It can be used by dealerships, private sellers, or corporate entities, and may include provisions for financing arrangements when applicable. The document serves as a legally binding record of the sale and helps prevent future disputes by clearly stating all terms and conditions of the vehicle purchase.

What sections should be included in a Auto Sales Agreement?

1. Parties: Identification of the seller and buyer with complete legal names, addresses, and identification numbers as required by Indonesian law

2. Background: Context of the transaction and brief overview of the agreement's purpose

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

4. Vehicle Description: Detailed description of the vehicle including make, model, year, color, engine number, chassis number, and registration number

5. Purchase Price: The agreed purchase price, payment terms, and payment method

6. Transfer of Ownership: Terms regarding the transfer of vehicle ownership and required documentation under Indonesian law

7. Seller's Representations and Warranties: Seller's declarations about the vehicle's condition, ownership, and legal status

8. Buyer's Acknowledgments: Buyer's confirmation of vehicle inspection and acceptance of condition

9. Delivery: Terms and conditions for vehicle delivery, including timing and location

10. Risk and Insurance: Transfer of risk and insurance requirements

11. Governing Law: Specification of Indonesian law as governing law and jurisdiction

12. Dispute Resolution: Process for resolving disputes under Indonesian jurisdiction

13. Signatures: Execution block for all parties

What sections are optional to include in a Auto Sales Agreement?

1. Trade-in Vehicle: Details of any vehicle being traded in as part of the purchase, used when there is a trade-in component

2. Financing Terms: Specific terms for financed purchases, including down payment and installment details, used when the purchase is not fully paid in cash

3. Vehicle Maintenance Requirements: Specific maintenance requirements to maintain warranty validity, included for new vehicles or when extended warranty is offered

4. Dealer Warranty: Additional warranty terms provided by the dealer, included for used vehicles when dealer warranty is offered

5. Registration and Transfer Assistance: Terms regarding dealer assistance with registration transfer, included when this service is offered

6. Insurance Requirements: Specific insurance requirements, particularly relevant for financed purchases

7. Return Policy: Terms for vehicle return or exchange, included when such policy is offered

What schedules should be included in a Auto Sales Agreement?

1. Schedule A - Vehicle Specification: Detailed technical specifications of the vehicle

2. Schedule B - Vehicle Condition Report: Comprehensive report on vehicle condition, including photographs and inspection results

3. Schedule C - Payment Schedule: Detailed payment terms and schedule, particularly for financed purchases

4. Schedule D - Warranty Terms: Detailed warranty terms and conditions

5. Schedule E - Required Documentation: List of all required documents for vehicle transfer under Indonesian regulations

6. Appendix 1 - Vehicle Registration Documents: Copies of current vehicle registration documents

7. Appendix 2 - Service History: Vehicle service history and maintenance records

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Contract to Sell

Cost

Free to use

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