The Non-Compromise Agreement is a specialized legal document used in Indonesian business and legal contexts when parties have determined that compromise or settlement is not feasible or desired. This document becomes relevant when negotiations have reached an impasse, and parties need to formally document their intention to pursue alternative dispute resolution methods or litigation. It operates within the framework of Indonesian civil law, particularly the Indonesian Civil Code (KUHPerdata) and Law No. 30 of 1999 regarding Arbitration and Alternative Dispute Resolution. The agreement serves to protect parties' legal positions while establishing clear parameters for future proceedings. It's particularly crucial in complex commercial disputes where preserving legal rights and maintaining procedural clarity is essential for future legal actions.
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1. Parties: Identification and details of all parties involved in the non-compromise agreement
2. Background: Context of the dispute and circumstances leading to the non-compromise agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Subject Matter of Dispute: Detailed description of the dispute or claims that are subject to this non-compromise agreement
5. Declaration of Non-Compromise: Express statement that parties have chosen not to compromise and will pursue alternative dispute resolution methods
6. Reservation of Rights: Statement preserving all parties' legal rights and positions
7. Future Proceedings: Outline of the intended next steps or proceedings for resolving the dispute
8. Confidentiality: Provisions regarding the confidentiality of the dispute and this agreement
9. Costs: Provisions regarding the bearing of costs related to the agreement and future proceedings
10. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and relevant jurisdiction
11. Execution: Signature blocks and execution details
1. Without Prejudice: Section stating that this agreement is made without prejudice to any party's rights - used when parties want to explicitly preserve their legal positions
2. Interim Arrangements: Temporary arrangements between parties during the period before dispute resolution - used when ongoing business relationships need to be maintained
3. Third Party Rights: Provisions regarding the rights of third parties - used when the dispute involves or affects third parties
4. Insurance and Indemnity: Provisions regarding insurance coverage and indemnification - used when there are specific insurance implications
5. Communications: Protocols for future communications between parties - used in complex cases where formal communication channels need to be established
1. Schedule 1 - Dispute Details: Detailed description of the dispute, including chronology of events and specific claims
2. Schedule 2 - Related Documents: List and copies of relevant documents related to the dispute
3. Schedule 3 - Party Representatives: Details of authorized representatives and their contact information
4. Appendix A - Communication Protocols: Detailed procedures for communications between parties during the dispute resolution process
5. Appendix B - Relevant Court Documents: Copies of any existing court documents or formal notices related to the dispute
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