Corporate Agency Agreement Template for Indonesia

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Key Requirements PROMPT example:

Corporate Agency Agreement

"I need a Corporate Agency Agreement for appointing an exclusive agent to represent our manufacturing company in Indonesia, with the agreement to commence on March 1, 2025, including strict performance targets and quality control requirements."

Document background
The Corporate Agency Agreement is a crucial legal instrument used when a company (Principal) wishes to appoint another company (Agent) to represent its interests and conduct business activities on its behalf in Indonesia. This document is essential for businesses expanding their operations in Indonesia while complying with local commercial laws and regulations. The agreement typically covers key aspects such as territory definition, scope of authority, commission structures, and compliance requirements under Indonesian law. It's particularly important for foreign companies entering the Indonesian market through local corporate agents, as it must comply with specific provisions of Indonesian agency laws, including the Indonesian Civil Code (Kitab Undang-undang Hukum Perdata) and relevant commercial regulations. The document should be carefully structured to address both commercial requirements and legal compliance, including necessary registrations and permits required under Indonesian agency regulations.
Suggested Sections

1. Parties: Identification of the Principal and Agent, including their complete legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and their intention to enter into an agency relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of agent appointment, exclusivity status, and detailed scope of authority

5. Territory: Geographic area where the agent is authorized to act

6. Duration: Term of the agreement, including commencement date and renewal provisions

7. Agent's Rights and Obligations: Detailed responsibilities and authorities of the agent

8. Principal's Rights and Obligations: Detailed responsibilities and commitments of the principal

9. Commission Structure: Details of compensation, commission rates, and payment terms

10. Reporting and Accountability: Requirements for financial and activity reporting

11. Confidentiality: Provisions protecting confidential information of both parties

12. Non-Competition: Restrictions on competing activities during and after the agreement

13. Termination: Grounds and procedures for termination, including notice periods

14. Post-Termination: Rights and obligations that survive termination

15. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

16. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

Optional Sections

1. Intellectual Property Rights: Used when the agent will be using the principal's trademarks or other IP

2. Financial Handling: Required when the agent will collect or handle money on behalf of the principal

3. Insurance: Needed when specific insurance requirements are imposed on the agent

4. Inventory Management: Include when the agent will maintain product inventory

5. Training and Support: Required when the principal will provide specific training or support services

6. Marketing and Promotion: Include when the agent has specific marketing responsibilities or restrictions

7. Compliance with Foreign Laws: Necessary for cross-border agency relationships

8. Data Protection: Required when the agent will handle personal or sensitive data

9. Bank Guarantee: Include when financial security is required from the agent

10. Sub-Agents: Include when the agent may appoint sub-agents

Suggested Schedules

1. Schedule 1 - Territory Description: Detailed description of the geographic territory, including any excluded areas

2. Schedule 2 - Commission Rates: Detailed breakdown of commission structures and calculation methods

3. Schedule 3 - Products/Services: List and specifications of products or services covered by the agreement

4. Schedule 4 - Performance Targets: Specific sales targets or other performance metrics

5. Schedule 5 - Reporting Templates: Standard forms for required periodic reports

6. Schedule 6 - Operating Procedures: Detailed procedures for day-to-day operations and interactions

7. Schedule 7 - Authorized Representatives: List of named individuals authorized to act for each party

8. Appendix A - Required Licenses: Copies or details of mandatory licenses and permits

9. Appendix B - Insurance Requirements: Specific insurance types and coverage levels required

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

Clauses
Relevant Industries

Manufacturing

Consumer Goods

Technology

Pharmaceuticals

Industrial Equipment

Automotive

Telecommunications

Financial Services

Real Estate

Energy

Agriculture

Construction

Retail

Healthcare

Education

Relevant Teams

Legal

Commercial

Business Development

Sales

Operations

Compliance

Finance

Corporate Secretariat

Risk Management

International Business

Relevant Roles

Chief Executive Officer

Commercial Director

Business Development Manager

Legal Counsel

Compliance Officer

Sales Director

Operations Manager

Contract Manager

Regional Manager

Country Manager

Corporate Secretary

Chief Financial Officer

Business Development Director

General Manager

Legal Director

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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