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Trading Terms Agreement

Trading Terms Agreement Template for Indonesia

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Key Requirements PROMPT example:

Trading Terms Agreement

"I need a Trading Terms Agreement under Indonesian law for my manufacturing company to supply automotive parts to multiple distributors across Java, with specific quality control requirements and monthly minimum order quantities, to be effective from March 2025."

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Document background
The Trading Terms Agreement serves as a crucial document for businesses operating in Indonesia who wish to establish clear and legally compliant trading relationships. This agreement is particularly important in the Indonesian context due to specific local regulatory requirements and business practices. It is commonly used when parties intend to enter into an ongoing trading relationship that requires detailed terms for ordering, delivery, payment, and quality standards. The document combines standard international trading practices with specific requirements under Indonesian law, including compliance with the Civil Code, Trade Law, and relevant regulations on commerce and business operations. It provides a comprehensive framework that protects both parties' interests while ensuring smooth business operations in accordance with Indonesian legal requirements.
Suggested Sections

1. Parties: Identification and details of all parties entering into the agreement

2. Background: Context of the trading relationship and purpose of the agreement

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

4. Scope of Trading Relationship: Overview of the trading arrangement and general obligations of each party

5. Ordering Process: Procedures and requirements for placing and accepting orders

6. Pricing and Payment Terms: Price determination, payment methods, currency, and payment timelines

7. Delivery Terms: Delivery obligations, timeframes, and logistics arrangements

8. Quality Standards: Product quality requirements and quality assurance processes

9. Warranties and Representations: Warranties regarding products, services, and capacity to perform

10. Term and Termination: Duration of agreement and circumstances for termination

11. Confidentiality: Protection and handling of confidential information

12. Dispute Resolution: Process for resolving disputes under Indonesian law

13. Force Majeure: Provisions for unforeseen circumstances affecting performance

14. Governing Law: Specification of Indonesian law as governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Intellectual Property Rights: Required when trading involves branded products or licensed materials

2. Insurance Requirements: Include when specific insurance coverage is required for high-value or high-risk trading

3. Exclusivity Arrangements: Include when parties agree to exclusive trading arrangements

4. Performance Metrics: Include when specific performance standards need to be maintained

5. Compliance with Export/Import Laws: Required for international trading relationships

6. Data Protection: Include when personal or sensitive data is processed as part of trading

7. Marketing and Branding: Include when agreement covers use of trademarks or marketing activities

8. Return and Refund Policy: Include for retail or consumer-facing trading relationships

9. Environmental Compliance: Include when trading involves environmental considerations or requirements

Suggested Schedules

1. Schedule 1 - Product Specifications: Detailed specifications of products or services covered by the agreement

2. Schedule 2 - Price List: Current pricing information and any volume-based discounts

3. Schedule 3 - Service Levels: Detailed service level requirements and measurements

4. Schedule 4 - Delivery Locations: List of approved delivery locations and specific requirements

5. Schedule 5 - Key Contacts: Contact details for key personnel from each party

6. Appendix A - Order Form Template: Standard form for placing orders under the agreement

7. Appendix B - Quality Control Procedures: Detailed quality control and testing procedures

8. Appendix C - Compliance Certificates: Required regulatory or compliance certifications

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

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Applicable Laws
Business Day
Confidential Information
Delivery Date
Delivery Location
Delivery Terms
Effective Date
Force Majeure Event
Goods
Intellectual Property Rights
Invoice
Order
Order Confirmation
Payment Terms
Price
Products
Purchase Order
Quality Standards
Related Entities
Services
Specifications
Term
Territory
Trade Documents
Trading Hours
Trading Period
Working Hours
Rupiah
Supplier
Buyer
Minimum Order Quantity
Lead Time
Payment Due Date
Quality Certificate
Returns
Shipping Documents
Stock Keeping Unit (SKU)
Trading License
Warranty Period
Non-Conforming Goods
Purchase Price
Trading Terms
Delivery Schedule
Commercial Invoice
Credit Terms
Default Event
Documentation
Inspection Period
Material Adverse Change
Representatives
Clauses
Interpretation
Commencement and Duration
Orders and Supply
Pricing
Payment Terms
Delivery
Quality Standards
Product Specifications
Warranties
Title and Risk
Intellectual Property
Confidentiality
Data Protection
Force Majeure
Termination
Consequences of Termination
Dispute Resolution
Governing Law
Insurance
Compliance with Laws
Anti-Corruption
Assignment
Subcontracting
Notices
Entire Agreement
Severability
Waiver
Variation
Third Party Rights
Relationship of Parties
Export/Import Compliance
Product Returns
Stock Management
Performance Metrics
Reporting Requirements
Audit Rights
Marketing and Branding
Territory Restrictions
Exclusivity
Product Liability
Indemnification
Currency and Exchange
Language
Electronic Communications
Business Continuity
Environmental Compliance
Records Maintenance
Relevant Industries

Retail

Manufacturing

Consumer Goods

Technology

Agriculture

Mining

Automotive

Electronics

Textiles

Food and Beverage

Pharmaceuticals

Construction Materials

Chemical Products

E-commerce

Logistics and Distribution

Relevant Teams

Legal

Commercial

Procurement

Sales

Supply Chain

Operations

Business Development

Compliance

Finance

International Trade

Vendor Management

Account Management

Contract Administration

Relevant Roles

Commercial Director

Procurement Manager

Sales Manager

Legal Counsel

Supply Chain Manager

Operations Director

Business Development Manager

Contract Administrator

Trade Compliance Officer

Chief Commercial Officer

Purchasing Manager

Account Manager

Regional Sales Director

Import/Export Manager

Vendor Relations Manager

Industries
Indonesian Civil Code (Kitab Undang-undang Hukum Perdata): Provides the fundamental principles of contract law, including formation, validity, and enforcement of contracts
Law No. 7 of 2014 on Trade: Regulates trading activities in Indonesia, including domestic and international trade, licensing, and standards for trade agreements
Law No. 8 of 1999 on Consumer Protection: Establishes rights and obligations of businesses and consumers, including provisions on fair trading practices and product liability
Law No. 5 of 1999 on Competition: Prohibits monopolistic practices and unfair business competition, affecting terms of trade between parties
Government Regulation No. 80 of 2019 on E-Commerce: Regulates electronic trading activities, including requirements for online transactions and digital agreements
Law No. 25 of 2007 on Investment: Governs investment activities and business operations in Indonesia, including provisions affecting trading relationships
Bank Indonesia Regulation on National Currency: Regulates the use of Indonesian Rupiah in domestic transactions and payment terms
Law No. 24 of 2004 on Export Financing: Provides framework for export financing and international trade transactions
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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