The Business Consulting Agreement serves as a critical legal framework for professional consulting engagements in Indonesia, designed to protect both consultants and clients while ensuring compliance with Indonesian law. This document is essential when engaging external consultants or consulting firms for professional services, whether for specific projects, ongoing advisory services, or specialized business support. It incorporates key provisions required under Indonesian Civil Code (KUH Perdata) and relevant business regulations, while addressing crucial aspects such as scope definition, service delivery, intellectual property rights, confidentiality, and payment terms. The agreement is particularly important in the Indonesian business context, where clear delineation between consulting and employment relationships is crucial for legal compliance. It can be customized for various consulting arrangements, from short-term project-based engagements to long-term strategic advisory relationships, while maintaining alignment with Indonesian legal requirements and business practices.
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1. Parties: Identification and details of the consultant and the client company
2. Background: Context of the agreement and brief description of the parties' intention to enter into a consulting relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of consulting services to be provided
5. Term and Timeline: Duration of the agreement and key milestone dates
6. Fees and Payment Terms: Consulting fees, payment schedule, expenses, and invoicing procedures
7. Obligations of the Consultant: Key responsibilities and commitments of the consultant
8. Obligations of the Client: Client's responsibilities including provision of information and cooperation
9. Intellectual Property Rights: Ownership and usage rights of deliverables and pre-existing IP
10. Confidentiality: Protection of confidential information and trade secrets
11. Representations and Warranties: Standard warranties regarding capacity, authority, and quality of services
12. Limitation of Liability: Limits on consultant's liability and exclusions
13. Termination: Grounds for termination and consequences of termination
14. Force Majeure: Provisions for unforeseen circumstances preventing performance
15. Governing Law and Dispute Resolution: Choice of law and method of resolving disputes
16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Non-Competition: Restrictions on consultant's ability to work with competitors (include if dealing with sensitive industry information)
2. Insurance: Requirements for professional indemnity and other insurance (include for high-value or high-risk consulting)
3. Data Protection: Specific provisions for handling personal data (include if personal data processing is involved)
4. Anti-Corruption: Compliance with anti-corruption laws (include if dealing with government entities or high-risk jurisdictions)
5. Currency and Tax: Specific provisions for international payments and tax implications (include for cross-border consulting)
6. Staff and Subcontractors: Rules regarding use of subconsultants and key personnel (include if team-based consulting)
7. Marketing Rights: Rights to use client name/logo for marketing (include if reference rights are desired)
1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and methodology
2. Schedule 2 - Fee Schedule: Detailed fee structure, rates, and payment milestones
3. Schedule 3 - Timeline and Deliverables: Project timeline, key dates, and delivery schedule
4. Schedule 4 - Key Personnel: List of key consultant personnel assigned to the project
5. Schedule 5 - Client Materials: List of materials and information to be provided by client
6. Schedule 6 - Service Levels: Performance standards and quality metrics
7. Appendix A - Compliance Requirements: Specific regulatory or industry compliance requirements
8. Appendix B - Form of Invoice: Template for consultant's invoices
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