The Extrajudicial Agreement serves as a crucial legal instrument in Indonesia's alternative dispute resolution framework. It is primarily used when parties wish to resolve their disputes efficiently and privately, avoiding the time, expense, and public nature of court proceedings. This document type is particularly valuable in commercial disputes, employment matters, or any situation where parties prefer a negotiated settlement. The agreement must comply with Indonesian Civil Code requirements and the Law on Arbitration and Alternative Dispute Resolution, while providing clear, enforceable terms for all parties. It typically includes comprehensive settlement terms, releases, confidentiality provisions, and implementation mechanisms, making it a versatile tool for dispute resolution across various sectors of business and civil matters.
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1. Parties: Identification and details of all parties involved in the agreement, including their legal capacity and authority to enter into the agreement
2. Background: Context of the dispute or situation leading to the extrajudicial agreement, including relevant history and current status
3. Definitions: Definitions of key terms used throughout the agreement to ensure clarity and prevent misinterpretation
4. Settlement Terms: Detailed description of the settlement arrangement, including any payments, actions, or obligations agreed upon
5. Timeline and Implementation: Specific timeframes for the execution of settlement terms and implementation of agreed actions
6. Release and Waiver: Mutual release of claims and waiver of rights to pursue legal action related to the settled matters
7. Confidentiality: Provisions regarding the confidentiality of the agreement terms and any related information
8. Good Faith and Finality: Declaration of good faith execution and finality of the settlement
9. Governing Law: Specification of Indonesian law as the governing law and relevant jurisdictional matters
10. Execution: Signature requirements and execution formalities under Indonesian law
1. Non-Admission of Liability: Statement that the agreement does not constitute admission of liability or wrongdoing by any party - used when specifically requested by one or more parties
2. Future Cooperation: Terms for ongoing relationship between parties - included when parties will continue to have business or other relationships
3. Tax Implications: Address tax consequences of the settlement - included when settlement involves significant financial transactions
4. Third Party Rights: Provisions regarding rights of third parties affected by the agreement - included when settlement impacts other parties
5. Insurance and Indemnification: Provisions regarding insurance coverage and indemnification - included when relevant to the settlement terms
6. Publicity and Announcements: Rules for public statements about the settlement - included in high-profile cases or when requested by parties
1. Schedule A - Payment Terms: Detailed breakdown of any financial settlements, including payment schedules and methods
2. Schedule B - Action Items: Specific list of actions to be taken by each party with deadlines
3. Schedule C - Released Claims: Comprehensive list of claims being settled and released
4. Schedule D - Required Documents: List of documents to be exchanged or executed as part of the settlement
5. Appendix 1 - Supporting Documents: Copies of relevant background documents referenced in the agreement
6. Appendix 2 - Form of Release: Template for any additional release documents required under the agreement
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