Contingency Agreement for Indonesia

Contingency Agreement Template for Indonesia

A Contingency Agreement governed by Indonesian law is a legally binding contract where payment is conditional upon achieving specific predetermined outcomes or success criteria. This document establishes the terms under which services will be provided, defines what constitutes success, and specifies the calculation and payment of fees based on achieved results. The agreement incorporates Indonesian legal requirements, including compliance with the Civil Code (KUHPerdata) and relevant professional regulations, while providing a clear framework for risk-sharing between the service provider and client. It includes detailed provisions for success verification, payment triggers, and dispute resolution mechanisms specific to the Indonesian jurisdiction.

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What is a Contingency Agreement?

The Contingency Agreement is essential for professional service arrangements in Indonesia where payment is tied to successful outcomes rather than time spent or standard fee structures. This document type is commonly used when a service provider agrees to accept the risk of non-payment in exchange for a potentially higher reward upon success. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata) and relevant professional regulations, while clearly defining success criteria, payment triggers, and calculation methods. It's particularly useful in situations involving legal services, business transactions, real estate deals, or debt collection, where the service provider's compensation is directly linked to achieving specific results. The document includes comprehensive provisions for verifying success, calculating fees, and managing the relationship between parties throughout the contingent arrangement.

What sections should be included in a Contingency Agreement?

1. Parties: Identification of the parties entering into the agreement, including their legal details and addresses

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

3. Definitions: Key terms used throughout the agreement, including specific definition of 'success' criteria and contingent events

4. Scope of Services: Detailed description of services to be provided under the agreement

5. Success Criteria: Clear definition of what constitutes success or the contingent event that triggers payment

6. Contingency Fee Structure: Detailed explanation of how fees will be calculated, including percentages, base amounts, and calculation methods

7. Payment Terms: Timing and method of payment upon achievement of success criteria

8. Obligations of Service Provider: Responsibilities and commitments of the party providing the service

9. Client Obligations: Responsibilities and commitments of the client, including provision of information and cooperation

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

11. Confidentiality: Provisions for handling confidential information shared during the engagement

12. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional details

13. Dispute Resolution: Process for resolving any disputes that arise under the agreement

What sections are optional to include in a Contingency Agreement?

1. Force Majeure: Provisions for handling unforeseen circumstances that prevent performance - include if services might be affected by external events

2. Partial Success Provisions: Terms for handling partial achievement of success criteria - include if success can be achieved in degrees

3. Multiple Party Provisions: Additional terms for managing multiple service providers or clients - include if more than two parties are involved

4. Intellectual Property Rights: Provisions regarding ownership and use of IP - include if services involve creation or use of intellectual property

5. Insurance Requirements: Specific insurance obligations - include if services involve significant risks or regulatory requirements

6. Assignment Rights: Terms for transferring rights under the agreement - include if assignment possibilities need to be addressed

7. Non-Competition: Restrictions on competing activities - include if competitive concerns exist

What schedules should be included in a Contingency Agreement?

1. Schedule A - Success Criteria Details: Detailed metrics and specifications for determining successful outcome

2. Schedule B - Fee Calculation Examples: Examples showing how contingency fees will be calculated in various scenarios

3. Schedule C - Required Documentation: List of documents required to verify achievement of success criteria

4. Schedule D - Service Level Requirements: Specific performance standards and timelines for service delivery

5. Schedule E - Key Personnel: List of key individuals involved in providing the services

6. Appendix 1 - Reporting Templates: Standard forms for progress reporting and success verification

7. Appendix 2 - Communication Protocols: Procedures for routine communications and escalation paths

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 | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Legal Services

Professional Services

Real Estate

Financial Services

Business Consulting

Debt Collection

Investment Banking

Corporate Advisory

Project Management

Business Brokerage

Commercial Property

Management Consulting

Relevant Teams

Legal

Finance

Business Development

Operations

Commercial

Risk Management

Compliance

Corporate Services

Project Management

Business Advisory

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Real Estate Agent

Collection Manager

Financial Advisor

Project Manager

Business Broker

Managing Partner

Chief Financial Officer

Chief Legal Officer

Commercial Director

Risk Manager

Compliance Officer

Operations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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