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Memorandum Of Understanding Between Two Partners

Memorandum Of Understanding Between Two Partners Template for Indonesia

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Key Requirements PROMPT example:

Memorandum Of Understanding Between Two Partners

"I need a Memorandum Of Understanding Between Two Partners for a technology partnership between my Indonesian software development company and a Singapore-based AI firm, with plans to jointly develop machine learning solutions starting March 2025."

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Document background
A Memorandum Of Understanding Between Two Partners is a crucial preliminary agreement commonly used in Indonesian business practice to establish the foundation for formal collaboration between organizations. This document type is particularly relevant when parties wish to formalize their intention to work together but are not yet ready to enter into a detailed, binding agreement. It serves as a framework document that outlines the basic terms of cooperation while complying with Indonesian legal requirements, including those specified in the Indonesian Civil Code (KUHPerdata) and relevant business regulations. The MoU typically precedes more detailed agreements and is especially useful in cross-sector partnerships, joint ventures, or strategic alliances where parties need to document their shared understanding and objectives before proceeding with more specific arrangements.
Suggested Sections

1. Parties: Detailed identification of both partners, including full legal names, addresses, and authorized representatives

2. Background: Context of the partnership, shared objectives, and reasons for entering into the MoU

3. Definitions: Key terms used throughout the document defined for clarity and consistency

4. Purpose and Scope: Clear statement of partnership objectives and boundaries of cooperation

5. Principles of Cooperation: General framework and guiding principles for the partnership

6. Roles and Responsibilities: High-level outline of each party's primary duties and contributions

7. Duration: Term of the MoU, including commencement date and initial period

8. Financial Arrangements: Basic principles regarding cost sharing or financial responsibilities, if any

9. Confidentiality: Obligations regarding protection of shared confidential information

10. Termination: Circumstances and process for ending the partnership

11. Governing Law: Specification of Indonesian law as governing law and jurisdiction

12. Signatures: Execution block for authorized signatories of both parties

Optional Sections

1. Intellectual Property Rights: Include when parties may share or create IP during collaboration

2. Further Agreements: Include when specific aspects will require detailed subsequent agreements

3. Non-Competition: Include when parties need to specify limits on competing activities

4. Force Majeure: Include when need to address potential disruptions beyond parties' control

5. Dispute Resolution: Include when parties want specific dispute resolution procedures

6. Personnel Exchange: Include when partnership involves staff exchanges or secondments

7. Marketing and Branding: Include when partnership involves joint branding or public announcements

8. Compliance with Laws: Include when specific regulatory compliance needs emphasis

Suggested Schedules

1. Schedule 1 - Initial Action Plan: Preliminary timeline and key milestones for the partnership

2. Schedule 2 - Contact Persons: List of key contact persons and their roles from each party

3. Schedule 3 - Resources Commitment: Initial outline of resources each party will contribute

4. Appendix A - Communication Protocol: Procedures for formal communications between parties

5. Appendix B - Confidential Information: Categories of information deemed confidential

6. Appendix C - Related Agreements: List of any existing or planned related agreements between parties

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Law
Business Day
Commencement Date
Confidential Information
Cooperation
Effective Date
Force Majeure
Initial Period
Intellectual Property Rights
Material Breach
Objectives
Partners
Partnership
Project
Representatives
Scope of Cooperation
Strategic Partnership
Term
Territory
Working Committee
Working Group
Related Parties
Authorized Signatories
Binding Provisions
Non-Binding Provisions
Permitted Purpose
Governing Law
Indonesian Law
Collaboration Period
Relevant Industries

Technology

Manufacturing

Education

Healthcare

Financial Services

Energy

Agriculture

Infrastructure

Transportation

Telecommunications

Professional Services

Real Estate

Retail

Mining

Tourism

Relevant Teams

Legal

Business Development

Corporate Affairs

Strategy

Operations

Executive Management

Compliance

Finance

Commercial

International Relations

Project Management

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Legal Counsel

Corporate Secretary

Partnership Manager

Strategy Director

Operations Director

Project Manager

Compliance Officer

Chief Financial Officer

Commercial Director

Head of Business Development

General Manager

Country Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata/KUHPerdata): Fundamental law governing contracts and agreements in Indonesia, particularly Book III on Obligations (Article 1233-1456). Contains provisions about the validity of contracts, rights and obligations of parties, and contract termination.
Law No. 25 of 2007 on Investment: Regulates investment activities in Indonesia, including partnerships between domestic and foreign entities. Important for understanding permitted business activities and partnership structures.
Law No. 24 of 2000 on International Treaties: Relevant if one party is foreign, governing the framework for international agreements and their implementation in Indonesia.
Law No. 40 of 2007 on Limited Liability Companies: Important for understanding corporate partnership structures and requirements if the MoU involves corporate entities.
Presidential Regulation No. 44 of 2016: Lists business fields that are open or closed to foreign investment, which may affect partnership terms and conditions.
Law No. 7 of 2014 on Trade: Governs trading activities and business partnerships in Indonesia, including domestic and international trade relationships.
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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