Document background
The Settlement Agreement Contract is a crucial legal document used in Indonesian jurisdiction when parties wish to formally resolve and conclude a dispute without proceeding to or continuing with litigation. This document type is particularly relevant when parties have reached a mutual understanding to settle their differences, whether through direct negotiation, mediation, or other forms of alternative dispute resolution. The agreement must comply with Articles 1851-1864 of the Indonesian Civil Code (KUHPerdata) and may require notarization for enhanced legal standing. It typically includes detailed settlement terms, payment arrangements, mutual releases, confidentiality provisions, and specific actions required from each party. The document is especially important in commercial disputes, employment matters, insurance claims, and other civil disputes where parties seek a definitive and binding resolution.
