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Purchase And Supply Agreement

Purchase And Supply Agreement Template for Indonesia

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Key Requirements PROMPT example:

Purchase And Supply Agreement

"I need a Purchase and Supply Agreement for my Jakarta-based electronics manufacturing company to source semiconductor components from a Surabaya supplier, with specific quality control requirements and quarterly delivery schedules starting March 2025."

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Document background
The Purchase And Supply Agreement serves as a fundamental commercial contract for businesses operating in Indonesia, establishing the legal and operational framework for the sale and purchase of goods. This document is essential when parties seek to establish a formal, ongoing supply relationship with clearly defined terms and conditions. It addresses key aspects such as product specifications, pricing mechanisms, delivery schedules, quality requirements, and compliance with Indonesian regulations. The agreement is particularly relevant for both domestic and international trade relationships subject to Indonesian law, incorporating necessary provisions from the Indonesian Civil Code and Trade Law No. 7 of 2014. It can be customized for various industries and transaction types, from simple supply arrangements to complex multi-year commitments.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including their legal names, registration numbers, and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Scope of Supply: Details of products/goods to be supplied, including specifications and quantities

5. Ordering Process: Procedures for placing and accepting purchase orders

6. Price and Payment: Pricing structure, payment terms, invoicing requirements, and currency specifications

7. Delivery and Risk: Delivery terms, timing, logistics arrangements, and transfer of risk provisions

8. Quality Requirements: Quality standards, inspection procedures, and acceptance criteria

9. Warranties: Product warranties, quality guarantees, and fitness for purpose assurances

10. Term and Termination: Duration of agreement and circumstances for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Force Majeure: Provisions for unforeseen circumstances preventing performance

13. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Minimum Purchase Commitments: Include when there are agreed minimum purchase quantities or values

2. Exclusivity: Include when either party has exclusive rights or obligations

3. Insurance Requirements: Include when specific insurance coverage is required for high-value or high-risk supplies

4. Compliance with Laws: Include detailed compliance provisions when dealing with regulated products or industries

5. Environmental Requirements: Include when environmental compliance or sustainability requirements are relevant

6. Training and Support: Include when supplier must provide training or technical support

7. Intellectual Property Rights: Include when IP ownership or licensing is relevant to the supply arrangement

8. Change Control: Include for long-term agreements where product specifications may need modification

9. Performance Metrics: Include when specific KPIs or service levels are required

10. Bank Guarantee: Include when financial security is required for performance

Suggested Schedules

1. Product Specifications: Detailed technical specifications of products to be supplied

2. Pricing Schedule: Detailed pricing structure, including any volume discounts or price adjustment mechanisms

3. Quality Standards: Specific quality requirements, testing procedures, and acceptance criteria

4. Delivery Schedule: Detailed delivery timeframes and locations

5. Purchase Order Template: Standard form for placing orders under the agreement

6. Service Level Agreement: Performance metrics and service level requirements

7. Compliance Certificates: Required regulatory or quality certifications

8. Key Personnel: List of key contacts and responsible personnel from both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Law
Business Day
Confidential Information
Delivery Date
Delivery Location
Delivery Terms
Effective Date
Force Majeure Event
Goods
Intellectual Property Rights
Invoice
Minimum Order Quantity
Order
Payment Terms
Price
Product Specifications
Purchase Order
Quality Standards
Rejection Notice
Related Entities
Representatives
SNI Standards
Specifications
Supplier
Supply Period
Term
Territory
Third Party
Working Hours
Warranty Period
Acceptance Criteria
Applicable Permits
Background IP
Commencement Date
Compliance Requirements
Defect
Delivery Schedule
Documentation
Inspection Period
Lead Time
Material Adverse Change
Notice
Packaging Requirements
Performance Standards
Purchase Price
Quality Control Procedures
Recall
Safety Standards
Service Levels
Shipping Documents
Storage Requirements
Technical Requirements
Test Procedures
Clauses
Interpretation
Definitions
Term and Duration
Supply Obligations
Ordering Process
Pricing
Payment Terms
Delivery
Title and Risk
Quality Requirements
Product Specifications
Acceptance and Rejection
Warranties
Performance Standards
Insurance
Liability
Indemnification
Force Majeure
Confidentiality
Intellectual Property
Compliance with Laws
Anti-Corruption
Record Keeping
Audit Rights
Change Control
Assignment
Subcontracting
Termination
Consequences of Termination
Dispute Resolution
Governing Law
Notices
Entire Agreement
Severability
Waiver
Amendment
Product Safety
Recall Procedures
Export Control
Competition Law
Data Protection
Environmental Compliance
Labor Compliance
Tax
Currency
Bank Guarantee
Performance Security
Business Continuity
Relationship of Parties
Third Party Rights
Relevant Industries

Manufacturing

Retail

Agriculture

Mining

Electronics

Automotive

Pharmaceuticals

Food and Beverage

Textiles

Construction

Chemical Industry

Consumer Goods

Industrial Equipment

Energy

Technology

Relevant Teams

Procurement

Legal

Supply Chain

Operations

Finance

Quality Assurance

Compliance

Commercial

Logistics

Sales

Risk Management

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Purchasing Officer

Operations Manager

Quality Assurance Manager

Compliance Officer

Chief Financial Officer

Logistics Manager

Sales Director

Business Development Manager

General Manager

Risk Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Primary legislation governing contractual relationships, including formation, validity, and enforcement of contracts
Law No. 7 of 2014 on Trade: Regulates domestic and international trade activities, including requirements for purchase and supply arrangements
Law No. 8 of 1999 on Consumer Protection: Provides framework for consumer rights and business obligations in commercial transactions
Government Regulation No. 24 of 2018 on Electronic Integrated Business Licensing Services: Regulates business licensing requirements including those relevant for trading activities
Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition: Ensures fair competition and prevents anti-competitive practices in business relationships
Law No. 7 of 2011 on Currency: Governs the use of currency in transactions and payment obligations
Government Regulation No. 80 of 2019 on Trading Through Electronic Systems: Regulates e-commerce and electronic trading systems if applicable to the purchase and supply arrangement
Law No. 2 of 2009 on Indonesian National Standards (SNI): Sets quality and safety standards for products being traded in Indonesia
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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