Document background
The Preliminary Agreement is a crucial document used in Indonesian business transactions to establish the groundwork for negotiations and potential future relationships between parties. It is particularly relevant when parties need to exchange confidential information, conduct due diligence, or establish exclusive negotiating arrangements before entering into a definitive agreement. This document, while generally non-binding except for specific provisions like confidentiality and exclusivity, must comply with Indonesian law, particularly the Civil Code (KUHPerdata) and relevant commercial regulations. It serves as a roadmap for negotiations, outlining key terms, timeframes, and responsibilities while protecting both parties' interests during the preliminary phase of their business relationship.
