The Contract Extension Addendum is a crucial document used in Indonesian business practice when parties wish to extend their existing contractual relationship beyond the original term. This document type is particularly relevant in ongoing business relationships where the original agreement's fundamentals remain sound, but an extension of time is required. It must be drafted in compliance with Indonesian law, particularly the Civil Code (KUHPerdata) and Law No. 24 of 2009 regarding language requirements. The addendum typically includes details about the extension period, any modified terms, and confirmations of continuing obligations. It's commonly used in various commercial contexts, from service agreements to supply contracts, and requires careful attention to both legal formalities and commercial terms. The document should be executed with proper authority and, in some cases, may require notarization or specific corporate approvals under Indonesian law.
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1. Parties: Full legal names and details of all contracting parties, matching the original agreement
2. Background: Reference to the original agreement, its date, and purpose, establishing the context for the extension
3. Definitions: Key terms used in the addendum, incorporating definitions from the original agreement and any new terms
4. Extension Term: Specific details of the extension period, including start and end dates
5. Continuing Effect: Confirmation that all other terms and conditions of the original agreement remain in full force and effect
6. Consideration: Statement of consideration for the extension, if any new consideration is being provided
7. Integration: Statement that this addendum forms part of the original agreement
8. Execution: Signature blocks and execution formalities complying with Indonesian law requirements
1. Modified Terms: Used when specific terms from the original agreement are being modified along with the extension
2. Additional Terms: Used when new terms are being added as part of the extension
3. Price Adjustment: Include when the extension involves changes to pricing or payment terms
4. Performance Review: Used when the extension is conditional upon or follows a review of past performance
5. Regulatory Compliance: Include when specific regulatory requirements need to be addressed in the extension
6. Language Declaration: Required when the document is bilingual, stating which language version prevails
1. Schedule 1 - Original Agreement: Copy or reference to the original agreement being extended
2. Schedule 2 - Updated Commercial Terms: If applicable, detailed listing of any updated pricing, payment terms, or commercial conditions
3. Schedule 3 - Performance Metrics: If applicable, updated or continuing performance requirements or service levels
4. Appendix A - Required Authorizations: Copies of any corporate or regulatory authorizations required for the extension
5. Appendix B - Amendment History: List of any previous amendments or extensions to maintain clear chronology
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