Basic Sales Agreement Template for Indonesia

A Basic Sales Agreement under Indonesian law is a fundamental commercial contract that establishes the terms and conditions for the sale and purchase of goods between parties. This document complies with the Indonesian Civil Code (KUHPerdata) and relevant commercial regulations, including Law No. 7 of 2014 on Trade. The agreement must be drafted in the Indonesian language as per Law No. 24 of 2009, though bilingual versions are permitted. It covers essential elements including product specifications, pricing, delivery terms, warranties, and dispute resolution mechanisms, while ensuring compliance with local consumer protection laws and commercial practices.

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What is a Basic Sales Agreement?

A Basic Sales Agreement serves as the primary legal instrument for documenting sales transactions in Indonesia, whether between businesses (B2B) or between businesses and consumers (B2C). This agreement type is essential for companies operating in Indonesia's diverse commercial sectors, providing a legally compliant framework for sales transactions while adhering to the Indonesian Civil Code and relevant commercial regulations. The document must be drafted in Indonesian (with optional bilingual versions) and typically includes key provisions such as product details, pricing, delivery terms, warranties, and dispute resolution mechanisms. It's particularly important for establishing clear terms and conditions, minimizing potential disputes, and ensuring compliance with Indonesian consumer protection laws and trade regulations.

What sections should be included in a Basic Sales Agreement?

1. Parties: Identification and details of the seller and buyer, including their legal names, registration numbers, addresses, and authorized representatives

2. Background: Context of the agreement and brief description of the transaction purpose

3. Definitions: Definitions of key terms used throughout the agreement to ensure clarity and prevent misinterpretation

4. Object of Sale: Detailed description of the goods being sold, including specifications, quantity, and quality standards

5. Purchase Price: The agreed price, currency, and payment terms including payment method and schedule

6. Delivery: Terms and conditions of delivery, including timing, location, and transfer of risk

7. Title and Risk: Provisions regarding transfer of ownership and risk in the goods

8. Warranties: Standard warranties regarding the quality and condition of goods

9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

10. Governing Law: Specification of Indonesian law as the governing law

11. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue

12. Execution: Signature blocks and execution requirements, including requirement for Indonesian language version

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

1. Insurance: Insurance requirements if specific coverage is needed for high-value goods or risky transactions

2. Intellectual Property: IP provisions if the goods involve trademarks, patents, or other intellectual property rights

3. Confidentiality: Confidentiality obligations if sensitive information is exchanged during the transaction

4. Force Majeure: Provisions for unforeseen circumstances preventing performance

5. Import/Export: Specific provisions for international sales including customs and regulatory compliance

6. Quality Control: Detailed quality control procedures for complex or technical products

7. Return Policy: Terms for returns and replacements if applicable to the type of goods

8. After-Sales Service: Support and maintenance terms for technical or complex products

What schedules should be included in a Basic Sales Agreement?

1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods

2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices if multiple products or pricing tiers are involved

3. Schedule 3 - Delivery Schedule: Detailed delivery timeline and locations if multiple deliveries are planned

4. Schedule 4 - Quality Standards: Specific quality standards and testing procedures if applicable

5. Schedule 5 - Warranty Terms: Detailed warranty terms and conditions if more extensive than in main agreement

6. Appendix A - Required Certifications: Copies of required product certifications or compliance documents

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

Sales Agreement

Sector

Sales

Cost

Free to use

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