Buy Back Option Contract Template for Indonesia

The Buy Back Option Contract is a specialized agreement used in Indonesian business transactions where a seller wishes to retain the right to repurchase an asset after selling it. This document is particularly valuable in situations involving strategic assets, property developments, or business restructuring where the original owner may need to temporarily transfer ownership while maintaining future repurchase rights. The contract must comply with Indonesian Civil Code requirements and relevant commercial regulations, making it suitable for various transactions from real estate to equipment sales. It typically includes detailed provisions on the initial sale terms, buy-back price calculation, option exercise period, and conditions for executing the repurchase, along with necessary safeguards for both parties' interests.

1. Parties: Identification and details of the seller (who will have the buy-back option) and the buyer

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

3. Definitions: Definitions of key terms used throughout the agreement, including 'Buy Back Option', 'Exercise Period', 'Purchase Price', and 'Buy Back Price'

4. Sale and Purchase: Terms of the initial sale, including purchase price, payment terms, and transfer of ownership

5. Buy Back Option: Detailed terms of the buy-back option, including exercise period, buy-back price, and mechanism for exercising the option

6. Exercise of Option: Procedure for exercising the buy-back option, including notice requirements and completion timeline

7. Representations and Warranties: Statements of fact and assurances from both parties regarding their capacity, authority, and the asset's condition

8. Maintenance and Use: Obligations regarding the maintenance and use of the asset during the option period

9. Default and Remedies: Consequences of breach and available remedies for both parties

10. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

11. Notices: Process and requirements for formal communications between parties

12. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability