Document background
The Legally Binding Term Sheet is a crucial document in Indonesian commercial transactions, used when parties wish to create immediate legal obligations while maintaining the efficiency of a term sheet format. It serves as an interim step between preliminary discussions and final documentation, particularly useful in time-sensitive deals or where parties need immediate commitment on key terms. Under Indonesian law, specifically the Civil Code (KUHPerdata), this document must meet certain requirements to be enforceable, including clear consent, capacity of parties, definite object, and lawful cause. The document is commonly used in corporate transactions, investments, joint ventures, and commercial partnerships where parties need to quickly memorialize their agreement on essential terms while maintaining legal certainty.
