Business Sales Agreement Contract Template for Indonesia

The Business Sales Agreement Contract is a fundamental commercial document used when two or more business entities in Indonesia enter into a formal sales arrangement for goods or services. This contract type is essential for establishing legally binding obligations between parties, protecting their interests, and ensuring compliance with Indonesian commercial law. The agreement is particularly important in the Indonesian business context, where formal documentation of commercial relationships is required for legal enforcement and regulatory compliance. It incorporates key provisions required under Indonesian law, including the Civil Code (KUHPerdata), Trade Law, and relevant commercial regulations. The document typically addresses crucial aspects such as payment terms, delivery conditions, quality standards, warranties, and dispute resolution mechanisms, while considering local business practices and legal requirements. It serves as a vital tool for risk management and clear communication between parties engaged in business-to-business sales transactions within the Indonesian jurisdiction.

1. Parties: Identification of all parties to the agreement, including full legal names, registration numbers, and registered addresses of the business entities

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

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

4. Scope of Sale: Detailed description of products/services being sold, including specifications, quantities, and quality standards

5. Price and Payment Terms: Purchase price, payment schedule, payment methods, and currency specifications

6. Delivery Terms: Delivery schedule, logistics arrangements, transfer of risk, and delivery locations

7. Quality and Inspection: Quality standards, inspection procedures, acceptance criteria, and rejection processes

8. Warranties and Representations: Warranties regarding products/services, business operations, and legal compliance

9. Obligations of the Parties: Specific responsibilities and obligations of both seller and buyer

10. Term and Termination: Duration of agreement, renewal terms, and conditions for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Dispute Resolution: Procedures for handling disputes, including jurisdiction, governing law, and arbitration provisions

13. Force Majeure: Circumstances excusing performance and procedures during force majeure events

14. General Provisions: Standard legal provisions including notices, amendments, and severability

15. Execution: Signature blocks, witness requirements, and execution formalities