The Offer Agreement is a crucial document in Indonesian business transactions, used when one party wishes to make a formal, legally-binding proposal to another party. This document type is particularly relevant for commercial transactions, corporate acquisitions, service provisions, or investment proposals in Indonesia. The agreement must comply with Indonesian Civil Code requirements and Law No. 24 of 2009 regarding language requirements. Typically, an Offer Agreement includes detailed terms of the offer, acceptance mechanisms, validity periods, and any conditions precedent that must be satisfied. It serves as a preliminary step in establishing a binding contractual relationship, offering protection to both the offering and receiving parties by clearly documenting the proposed terms and conditions. The document is especially important in Indonesian business culture, where formal written proposals are highly valued in commercial negotiations.
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1. Parties: Identification and details of the offering party and the party to whom the offer is made
2. Background: Context and circumstances leading to the offer
3. Definitions: Key terms used throughout the agreement
4. Offer Terms: Detailed description of what is being offered (goods, services, or other considerations)
5. Price and Payment Terms: Financial terms of the offer including pricing, payment schedule, and payment methods
6. Duration of Offer: Period for which the offer remains valid and conditions for expiration
7. Acceptance Mechanism: Process and requirements for accepting the offer
8. Conditions Precedent: Any conditions that must be met before the offer can be accepted or becomes binding
9. Representations and Warranties: Statements of fact and assurances made by the offering party
10. Governing Law: Specification of Indonesian law as the governing law
11. Language: Specification of language requirements and which version prevails if bilingual
12. Notices: How and where formal communications between parties should be made
13. Entire Agreement: Confirmation that this document represents the complete understanding between parties
1. Confidentiality: Terms regarding confidential information - include if sensitive information is shared
2. Due Diligence: Rights and process for conducting due diligence - include for complex commercial offers
3. Break Fee: Fees payable if either party withdraws - include for high-value transactions
4. Force Majeure: Provisions for unforeseen circumstances - include for long-term or complex offers
5. Assignment: Rights to assign the offer to other parties - include if relevant to transaction type
6. Dispute Resolution: Process for resolving disputes - include for high-value or complex transactions
7. Electronic Execution: Provisions for digital signing - include if electronic execution is contemplated
1. Schedule 1 - Offer Details: Detailed specifications of goods/services being offered
2. Schedule 2 - Pricing Schedule: Detailed breakdown of prices and payment terms
3. Schedule 3 - Timeline: Key dates and milestones related to the offer
4. Schedule 4 - Required Documents: List of documents required for acceptance
5. Appendix A - Form of Acceptance: Template for formal acceptance of the offer
6. Appendix B - Due Diligence Requirements: List of due diligence items if applicable
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