Sale Payment Agreement Template for Indonesia

The Sale Payment Agreement is a crucial document used in Indonesian commercial transactions to establish clear and enforceable payment terms between parties involved in a sale transaction. This agreement becomes particularly important in situations involving significant transaction values, installment payments, or where specific payment security arrangements are required. The document, governed by Indonesian law, particularly the Civil Code (KUHPerdata) and relevant commercial regulations, typically includes comprehensive payment terms, security arrangements, default provisions, and dispute resolution mechanisms. It serves to protect both parties' interests by clearly documenting payment obligations, timelines, and consequences of default, while ensuring compliance with Indonesian payment and currency regulations.

1. Parties: Identification and details of the seller and buyer, including their legal names, registration numbers, and addresses

2. Background: Context of the sale transaction and the purpose of the payment agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale Price and Payment Terms: The total sale price, currency, and detailed payment terms including payment method and timeline

5. Payment Obligations: Specific obligations of the buyer regarding payments, including due dates and payment procedures

6. Late Payment and Default: Consequences of late payment, including interest rates, penalties, and remedies

7. Security: Any security arrangements for the payment obligations

8. Representations and Warranties: Standard representations and warranties from both parties regarding their capacity and authority

9. Force Majeure: Provisions for unforeseen circumstances affecting payment obligations

10. Termination: Circumstances under which the agreement can be terminated and the consequences

11. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

12. Notices: Process for sending formal notices between parties

13. General Provisions: Standard boilerplate clauses including amendments, entire agreement, and severability