The Non-Reliance Letter Hold Harmless Letter is a crucial document in Indonesian business transactions where one party shares information with another but needs to protect themselves from potential liability. It is commonly used in due diligence processes, M&A transactions, and business negotiations where preliminary information is exchanged. The document serves dual purposes: first, it documents that the recipient is not relying on the provided information for making decisions, and second, it includes hold harmless provisions protecting the information provider from future claims. Under Indonesian law, particularly considering the Civil Code (KUH Perdata) and related commercial regulations, this document helps establish clear boundaries of liability and responsibility while facilitating necessary information exchange in business transactions. It's particularly relevant in situations where information is shared on a preliminary or informal basis, or where the provider cannot verify the complete accuracy of all shared information.
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1. Letter Header and Date: Formal letter heading including sender's details, recipient's details, and date
2. Subject Line: Clear identification of the letter's purpose as a Non-Reliance and Hold Harmless Letter
3. Introduction and Party Identification: Opening paragraph identifying the parties and their roles, including company registration details if applicable
4. Transaction Context: Brief description of the underlying transaction or relationship that necessitates this letter
5. Information Acknowledgment: Statement acknowledging what information has been provided and the context of its provision
6. Non-Reliance Declaration: Express statement that recipient is not relying on any information provided and has conducted own due diligence
7. Hold Harmless Provisions: Specific provisions regarding indemnification and holding the provider harmless from claims
8. Governing Law Statement: Clear statement that the letter is governed by Indonesian law
9. Signature Block: Space for signatures, names, titles, and company stamps if applicable
1. Specific Disclaimers: Additional specific disclaimers related to particular information or documents provided, used when specific sensitive information needs to be addressed
2. Duration of Non-Reliance: Specific timeframe for the non-reliance provisions, included when the non-reliance needs to be time-bound
3. Dispute Resolution: Specific dispute resolution mechanisms, included when parties want to specify particular methods for resolving disputes
4. Confidentiality Provisions: Additional confidentiality obligations, included when the information exchanged is sensitive or proprietary
5. Severability Clause: Statement on severability of provisions, included in more complex situations where partial invalidity might be a concern
1. Schedule A - Information List: Detailed list of specific information or documents provided that are subject to the non-reliance provisions
2. Schedule B - Related Parties: List of affiliated entities or individuals covered by the letter's provisions, if applicable
3. Appendix 1 - Corporate Authorizations: Copies of relevant corporate authorizations or powers of attorney, if required
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