Document background
The Cession Agreement is a crucial document in Indonesian business and legal practice, used when parties need to transfer rights, receivables, or claims from one entity to another. This type of agreement is particularly relevant in the context of Indonesian civil law, where the transfer of rights requires specific formalities under the Civil Code (KUHPerdata). The document must be drafted in compliance with Indonesian law requirements, including mandatory use of the Indonesian language (with optional English translation), and may require notarization depending on the nature of the rights being transferred. A Cession Agreement typically includes detailed descriptions of the transferred rights, warranties about their existence and transferability, consideration details, and necessary notifications to affected parties. It's commonly used in debt assignments, project finance, corporate restructuring, and asset transfers.
