Exclusive Selling Agreement Template for Indonesia

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Key Requirements PROMPT example:

Exclusive Selling Agreement

"I need an Exclusive Selling Agreement for my Jakarta-based electronics manufacturing company to appoint a sole distributor in East Java, with minimum purchase requirements of 1000 units per quarter and a 3-year term starting January 2025."

Document background

The Exclusive Selling Agreement is a crucial commercial document used when a business wants to establish a controlled distribution channel in Indonesia through an exclusive seller or distributor. This agreement type is particularly important in the Indonesian market due to specific local requirements for distribution arrangements and the need to comply with anti-monopoly regulations. The document establishes exclusive territorial rights, sets performance expectations, and defines the relationship between supplier and seller while ensuring compliance with Indonesian laws, particularly Law No. 5 of 1999 and relevant Ministry of Trade regulations. It's commonly used when entering the Indonesian market or restructuring existing distribution networks, requiring careful consideration of local business practices and regulatory requirements.

Suggested Sections

1. Parties: Identification of the supplier/manufacturer and the exclusive seller, including their complete legal details

2. Background: Context of the agreement, including the supplier's business, products, and intention to appoint an exclusive seller

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

4. Appointment and Scope: Terms of exclusive appointment, territory definition, and scope of rights granted

5. Duration and Renewal: Initial term, renewal conditions, and notice periods

6. Rights and Obligations of the Supplier: Supplier's commitments, including product supply, support, and training

7. Rights and Obligations of the Seller: Seller's commitments, including sales targets, marketing efforts, and reporting requirements

8. Product Specifications and Standards: Details of products covered, quality standards, and compliance requirements

9. Pricing and Payment Terms: Product pricing structure, payment terms, and price adjustment mechanisms

10. Intellectual Property Rights: Usage rights for trademarks, patents, and other IP

11. Confidentiality: Protection of confidential information and trade secrets

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

13. Termination: Grounds for termination, process, and consequences

14. Post-Termination Obligations: Obligations surviving termination and wind-down procedures

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

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

Optional Sections

1. Minimum Purchase Requirements: Include when specific purchase quotas or targets are required

2. Marketing and Promotion: Include when specific marketing obligations and cost-sharing arrangements are needed

3. Training and Support: Include when detailed training and technical support provisions are required

4. Insurance Requirements: Include when specific insurance coverage is mandatory

5. Bank Guarantee: Include when financial security is required from the seller

6. Logistics and Delivery: Include when specific logistics arrangements need to be detailed

7. After-Sales Service: Include when warranty and service obligations need to be specified

8. Force Majeure: Include when specific force majeure provisions beyond standard cases are needed

9. Anti-Corruption Compliance: Include when enhanced compliance provisions are required

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products covered by the agreement, including specifications and prices

2. Schedule 2 - Territory: Detailed description of the exclusive territory, including maps if relevant

3. Schedule 3 - Performance Targets: Annual or periodic sales targets and performance metrics

4. Schedule 4 - Commission Structure: Detailed breakdown of commission rates and calculation methods

5. Schedule 5 - Technical Requirements: Technical specifications and standards for product handling and storage

6. Schedule 6 - Trademark Usage Guidelines: Guidelines for use of supplier's trademarks and branding

7. Schedule 7 - Reporting Templates: Standard forms for regular reporting requirements

8. Appendix A - Standard Operating Procedures: Detailed operational procedures and requirements

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Consumer Goods

Electronics

Automotive

Industrial Equipment

Pharmaceuticals

Fashion and Luxury Goods

Food and Beverage

Construction Materials

Medical Devices

Telecommunications Equipment

Agricultural Products

Cosmetics and Personal Care

Relevant Teams

Legal

Commercial

Sales

Business Development

Compliance

Operations

Supply Chain

Distribution

International Trade

Corporate Affairs

Finance

Risk Management

Relevant Roles

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contract Manager

Distribution Manager

Country Manager

Chief Executive Officer

Chief Commercial Officer

Regional Sales Manager

Compliance Officer

Supply Chain Manager

General Manager

Operations Director

Product Manager

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Authors

Alex Denne

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