Terms Of Contract Template for Indonesia

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Key Requirements PROMPT example:

Terms Of Contracts

"I need Terms of Contract for my technology consulting company based in Jakarta, focusing on software development services, with specific clauses for intellectual property protection and data security, to be used with international clients starting from March 2025."

Document background

Terms of Contract documents are essential legal instruments used to establish and govern business relationships in Indonesia. These documents are particularly crucial when establishing ongoing business relationships, setting standard terms for goods or services, or creating framework agreements for future transactions. The Terms of Contract must comply with Indonesian law, particularly the Civil Code (KUHPer) and related regulations, and should be drafted in both English and Bahasa Indonesia to meet legal requirements. They typically include comprehensive provisions covering contract formation, performance obligations, risk allocation, termination rights, and dispute resolution mechanisms. This document type is commonly used across various industries and is particularly important for businesses operating in Indonesia or engaging with Indonesian entities, as it provides a clear legal framework while ensuring compliance with local law requirements.

Suggested Sections

1. Parties: Identification of all contracting parties, including full legal names, addresses, and company registration details if applicable

2. Background: Context of the agreement and brief description of the parties' intention to enter into contractual relations

3. Definitions: Definitions of key terms used throughout the agreement, ensuring consistency with Indonesian legal terminology

4. Scope of Agreement: Clear delineation of the subject matter and scope of the contractual relationship

5. Rights and Obligations: Detailed description of each party's rights and responsibilities under the contract

6. Term and Duration: Period of the agreement, including commencement date and duration

7. Payment Terms: Details of payment obligations, including amounts, currency, and payment schedules

8. Representations and Warranties: Statements of fact and assurances made by the parties

9. Termination: Circumstances under which the contract may be terminated and the consequences of termination

10. Force Majeure: Provisions for unforeseen circumstances that prevent contract performance

11. Governing Law: Explicit statement that Indonesian law governs the agreement

12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and forum selection

13. Language: Statement regarding the controlling language version as per Law No. 24 of 2009

14. Notices: Process and contact details for formal communications between parties

15. Entire Agreement: Confirmation that the document represents the complete agreement between parties

Optional Sections

1. Confidentiality: Provisions for protecting confidential information, used when sensitive information will be shared

2. Intellectual Property: Provisions regarding ownership and use of IP, included when IP rights are relevant to the contract

3. Insurance: Requirements for insurance coverage, included for high-risk or high-value contracts

4. Assignment: Provisions regarding the transfer of rights and obligations, included when transfer rights need to be restricted

5. Compliance with Laws: Specific regulatory compliance requirements, included for regulated industries or activities

6. Change Control: Procedures for making changes to the agreement, included for long-term or complex contracts

7. Service Levels: Performance metrics and standards, included for service-based contracts

8. Limitation of Liability: Caps on liability and exclusions, included when liability risks need to be managed

9. Anti-Corruption: Compliance with anti-corruption laws, included for international contracts or government-related work

Suggested Schedules

1. Schedule 1 - Pricing Schedule: Detailed breakdown of prices, rates, and payment terms

2. Schedule 2 - Service Specifications: Detailed description of services or deliverables

3. Schedule 3 - Key Personnel: List of key personnel and their roles (if applicable)

4. Schedule 4 - Performance Metrics: Detailed service levels and performance indicators

5. Appendix A - Contact Details: Comprehensive contact information for all parties

6. Appendix B - Required Documents: Copies of licenses, permits, or other required documentation

7. Appendix C - Bahasa Indonesia Translation: Official Indonesian language translation as required by Law No. 24 of 2009

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

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Manufacturing

Technology

Retail

Financial Services

Construction

Healthcare

Education

Telecommunications

Professional Services

Logistics

E-commerce

Real Estate

Energy

Agriculture

Mining

Relevant Teams

Legal

Procurement

Operations

Commercial

Compliance

Risk Management

Sales

Business Development

Contract Administration

Supply Chain

Project Management

Account Management

Corporate Affairs

Finance

Administration

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Procurement Manager

Operations Director

Commercial Manager

Compliance Officer

Risk Manager

Chief Legal Officer

General Counsel

Sales Director

Project Manager

Account Manager

Supply Chain Manager

Chief Operating Officer

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