Non Refundable Payment Agreement Template for Indonesia

The Non-Refundable Payment Agreement is essential in transactions where advance or commitment payments are required without the possibility of refund. This document is particularly relevant in Indonesian business contexts where significant upfront commitments are necessary, such as property developments, event bookings, or service contracts. It provides a clear legal framework under Indonesian law for protecting both the recipient's right to retain the payment and the payer's understanding of the non-refundable nature of the transaction. The agreement should be used when parties need to establish unambiguous terms regarding payment finality, typically in situations involving deposits, advance payments, or commitment fees. The document incorporates relevant provisions from the Indonesian Civil Code and financial regulations to ensure enforceability and compliance with local legal requirements.

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

2. Background: Context of the agreement, including the purpose of the non-refundable payment and the relationship between the parties

3. Definitions: Clear definitions of key terms used throughout the agreement, including 'Non-Refundable Payment', 'Payment Date', and other relevant terms

4. Payment Terms: Detailed description of the payment amount, payment method, and payment schedule

5. Non-Refundable Nature: Clear statement of the non-refundable nature of the payment and explicit acknowledgment by the paying party

6. Purpose of Payment: Specific description of what the payment is for and how it will be applied

7. Representations and Warranties: Statements from both parties confirming their capacity to enter into the agreement and understanding of its terms

8. Acknowledgment of Non-Refundability: Explicit acknowledgment by the paying party of their understanding and acceptance of the non-refundable nature of the payment

9. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and designation of jurisdiction for dispute resolution

10. Execution: Signature blocks and execution requirements