The Simple MOU is a fundamental document in Indonesian business practice, commonly used as an initial step in establishing business relationships and partnerships. It serves as a preliminary document that outlines the parties' intentions and basic framework for cooperation before entering into more detailed, binding agreements. This document type is particularly relevant in the Indonesian context where businesses often prefer to establish formal relationships gradually. The Simple MOU typically includes basic terms such as scope of cooperation, non-binding nature, confidentiality, and duration, while complying with Indonesian legal requirements. It's especially useful for cross-border relationships where parties need to document their preliminary understanding while conducting due diligence or negotiating detailed terms. The document must comply with Indonesian law, including language requirements under Law No. 24 of 2009 and basic contract principles under the Indonesian Civil Code.
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1. Parties: Identification of all parties to the MOU, including full legal names, addresses, and company registration details as required under Indonesian law
2. Background: Context and circumstances leading to the MOU, including the parties' general intentions and relationship
3. Definitions: Key terms used throughout the document, ensuring clarity and consistent interpretation
4. Purpose and Scope: Clear statement of the MOU's objectives and the scope of potential cooperation
5. Principles of Cooperation: General framework and principles under which the parties agree to work together
6. Roles and Responsibilities: High-level outline of each party's expected contributions and responsibilities
7. Duration: Period for which the MOU will be in effect, including start date and termination conditions
8. Non-Binding Nature: Clear statement that the MOU is not legally binding except for specific clauses
9. Confidentiality: Basic provisions regarding the handling of confidential information exchanged
10. Governing Law: Specification of Indonesian law as the governing law
11. Signatures: Execution block including date and authorized signatures
1. Financial Arrangements: Include when there are preliminary agreements about cost sharing or financial commitments
2. Intellectual Property: Add when the cooperation may involve sharing or creating intellectual property
3. Exclusivity: Include when parties wish to establish exclusive negotiation or cooperation terms
4. Dispute Resolution: Add when parties want to specify a particular approach to resolving disagreements
5. Language: Include when the MOU is bilingual to specify which version prevails
6. Press Releases and Announcements: Add when public communications about the cooperation need to be regulated
7. Representatives: Include when specific individuals need to be designated as primary contacts
8. Further Agreements: Add when specific binding agreements are contemplated to follow the MOU
1. Schedule A - Scope of Cooperation: Detailed description of potential areas of cooperation or specific projects
2. Schedule B - Timeline: Proposed timeline for key milestones and activities
3. Schedule C - Contact Details: List of key contact persons and their details for each party
4. Appendix 1 - Required Approvals: List of any regulatory or internal approvals needed for future binding agreements
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