Liability Settlement Agreement Template for Indonesia

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Key Requirements PROMPT example:

Liability Settlement Agreement

"Need a Liability Settlement Agreement under Indonesian law for a manufacturing defect claim between PT Indo Manufacturing and PT Global Electronics, with a settlement value of IDR 5 billion to be paid in installments by March 2025, including strict confidentiality provisions."

Document background
The Liability Settlement Agreement is a crucial legal instrument used in Indonesian business and civil matters to formally resolve disputes and potential liabilities between parties. It is commonly employed when parties wish to settle existing or potential claims without pursuing litigation or following mediation/negotiation processes. The document must comply with Indonesian civil law requirements, particularly the Indonesian Civil Code (KUHPerdata) and Law No. 30 of 1999 regarding Alternative Dispute Resolution. This agreement typically includes detailed settlement terms, payment provisions, comprehensive releases, and warranties, while ensuring enforceability under Indonesian jurisdiction. It serves as a final resolution document that prevents future litigation on the settled matters and provides certainty to all parties involved.
Suggested Sections

1. Parties: Identification and details of all parties involved in the settlement, including their legal status and authority to enter into the agreement

2. Background: Recitals describing the dispute or claim, relevant history, and parties' intention to settle

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

4. Settlement Amount: Details of the agreed settlement sum and any applicable taxes or deductions

5. Payment Terms: Payment schedule, method of payment, and currency specifications

6. Release and Waiver: Mutual release of claims and waiver of future rights related to the settled matter

7. Representations and Warranties: Statements by parties regarding their capacity, authority, and understanding of the settlement

8. Effect of Settlement: Legal impact of the settlement and its binding nature on parties

9. Non-Admission of Liability: Statement that the settlement does not constitute admission of liability

10. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

11. Entire Agreement: Confirmation that this document represents the complete agreement between parties

12. Execution: Signing requirements and execution formalities

Optional Sections

1. Confidentiality: Terms regarding confidentiality of the settlement terms and related information, used when parties want to keep details private

2. Tax Implications: Specific provisions regarding tax treatment and responsibilities, used when settlement has significant tax consequences

3. Regulatory Compliance: Additional provisions ensuring compliance with specific regulations, used when settlement involves regulated entities or activities

4. Third Party Rights: Provisions regarding rights of third parties, used when settlement affects parties not directly involved in the agreement

5. Insurance: Provisions regarding insurance claims or coverage, used when insurance companies are involved

6. Future Cooperation: Terms for ongoing relationship between parties, used when parties will continue to interact post-settlement

7. Severability: Provisions for partial invalidity, used when there's risk of certain provisions being challenged

8. Force Majeure: Provisions for unforeseen circumstances affecting settlement implementation, used in long-term settlement arrangements

Suggested Schedules

1. Schedule A - Settlement Calculation: Detailed breakdown of settlement amount and calculations

2. Schedule B - Payment Schedule: Detailed payment timeline and installment amounts if applicable

3. Schedule C - Released Claims: Comprehensive list of claims being settled and released

4. Schedule D - Supporting Documents: List of relevant documents evidencing the original dispute or claim

5. Schedule E - Corporate Authorizations: Copies of corporate approvals and authorizations for settlement

6. Appendix 1 - Form of Release: Template for additional release documents if required

7. Appendix 2 - Evidence of Authority: Documentation proving signatories' authority to execute the agreement

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

Relevant Industries

Manufacturing

Construction

Financial Services

Insurance

Real Estate

Mining

Oil and Gas

Infrastructure

Transportation

Healthcare

Retail

Professional Services

Relevant Teams

Legal

Risk Management

Compliance

Finance

Insurance

Corporate Secretariat

Executive Leadership

Treasury

Claims Management

Dispute Resolution

Relevant Roles

Legal Counsel

Chief Legal Officer

Risk Manager

Compliance Officer

Chief Financial Officer

Claims Manager

Settlement Officer

Corporate Secretary

Chief Executive Officer

Insurance Manager

Dispute Resolution Specialist

General Counsel

Head of Legal

Chief Risk Officer

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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