The Retainer Agreement serves as a fundamental legal instrument in Indonesian business practice for establishing long-term professional service relationships. This document is essential when a client requires regular access to professional services and wishes to secure priority availability from a service provider. The agreement, governed by Indonesian law and particularly the Civil Code (KUH Perdata), typically includes detailed provisions on service scope, fee structures, performance standards, and mutual obligations. It's commonly used by professional service firms, consultancies, and advisory businesses to formalize ongoing client relationships and ensure consistent service delivery. The document also addresses key aspects such as confidentiality, intellectual property rights, and dispute resolution mechanisms, making it suitable for both domestic and international business relationships within the Indonesian legal framework.
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1. Parties: Identification of the service provider and the client, including their legal names, addresses, and registration details
2. Background: Context of the agreement and brief description of the parties' intention to enter into a retainer arrangement
3. Definitions: Key terms used throughout the agreement defined for clarity and consistency
4. Scope of Services: Detailed description of the professional services to be provided under the retainer arrangement
5. Term and Renewal: Duration of the retainer agreement and conditions for renewal
6. Retainer Fee and Payment Terms: Amount of retainer fee, payment schedule, and billing procedures
7. Rights and Obligations: Detailed responsibilities and obligations of both parties
8. Confidentiality: Provisions regarding the protection and handling of confidential information
9. Intellectual Property: Ownership and rights related to work products and pre-existing IP
10. Termination: Circumstances and procedures for ending the agreement
11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
12. Notices: Process and requirements for formal communications between parties
13. Entire Agreement: Standard clause confirming the agreement represents the complete understanding between parties
1. Non-Competition: Restrictions on competitive activities, used when services involve sensitive market information or strategic consulting
2. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term retainer arrangements
3. Insurance: Requirements for professional indemnity or other insurance, important for high-risk professional services
4. Data Protection: Specific provisions for handling personal data, required when services involve processing personal information
5. Subcontracting: Terms governing the use of subcontractors, relevant when service provider may need to delegate work
6. Service Levels: Specific performance metrics and standards, useful for technical or specialized services
7. Compliance with Laws: Specific regulatory compliance requirements, important in regulated industries
8. Currency and Tax: Specific provisions for international arrangements or complex payment structures
1. Schedule A - Scope of Services: Detailed breakdown of services covered under the retainer
2. Schedule B - Fee Structure: Detailed breakdown of fees, including hourly rates if applicable, and payment terms
3. Schedule C - Key Personnel: List of key team members assigned to provide the services
4. Schedule D - Service Levels: Detailed performance metrics and service standards if applicable
5. Appendix 1 - Communication Protocol: Procedures for routine communications and escalation pathways
6. Appendix 2 - Required Reports: Templates and specifications for required reporting under the agreement
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