The Provisional Agreement is a specialized legal instrument used in Indonesian business contexts where parties need to establish temporary or interim arrangements while working toward more permanent solutions or waiting for specific conditions to be met. This document type is particularly valuable in situations involving business transitions, project initialization phases, or temporary commercial relationships where immediate formal arrangements are necessary but permanent terms are yet to be finalized. The agreement must comply with Indonesian legal requirements, including the Indonesian Civil Code (KUHPer) and language regulations. It typically includes clear provisions for duration, scope, rights and obligations, financial terms, and transition arrangements. The Provisional Agreement's flexibility makes it suitable for various business scenarios while providing legal protection and clarity for all parties during the interim period.
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1. Parties: Identification and details of all parties entering into the provisional agreement
2. Background: Context and circumstances leading to the provisional agreement, including the temporary nature of the arrangement
3. Definitions: Key terms used throughout the agreement and their specific meanings
4. Duration and Term: Specific period for which the provisional agreement will be in effect, including start and end dates
5. Scope of Provisional Arrangement: Detailed description of the temporary arrangements being agreed upon
6. Rights and Obligations: Specific responsibilities and entitlements of each party during the provisional period
7. Financial Terms: Any financial arrangements, payments, or considerations during the provisional period
8. Termination: Circumstances under which the agreement can be terminated before the end of the provisional period
9. Transition Arrangements: Procedures for concluding the provisional arrangement and transitioning to permanent arrangements or termination
10. Governing Law: Specification of Indonesian law as the governing law and relevant jurisdictional matters
11. Language: Statement regarding the language of the agreement, ensuring compliance with Indonesian language requirements
12. Execution: Signature blocks and execution formalities
1. Permanent Agreement Provisions: Include when the provisional agreement is intended to lead to a permanent arrangement, outlining the framework for the future permanent agreement
2. Regulatory Compliance: Include when the provisional arrangement requires specific regulatory approvals or compliance measures
3. Intellectual Property: Include when the provisional arrangement involves the use or creation of intellectual property
4. Confidentiality: Include when sensitive information will be shared during the provisional period
5. Force Majeure: Include when there's a need to address potential extraordinary circumstances that might affect the provisional arrangement
6. Insurance and Indemnity: Include when the provisional arrangement involves significant risks or potential liabilities
7. Dispute Resolution: Include when specific dispute resolution mechanisms are needed beyond standard court proceedings
1. Schedule 1 - Timeline: Detailed timeline of key dates and milestones during the provisional period
2. Schedule 2 - Services/Deliverables: Detailed description of any services or deliverables to be provided during the provisional period
3. Schedule 3 - Pricing and Payment Terms: Detailed breakdown of any financial arrangements, including payment schedules
4. Schedule 4 - Required Approvals: List of regulatory or third-party approvals required for the provisional arrangement
5. Appendix A - Contact Details: Key contact information for all parties and their representatives
6. Appendix B - Required Documentation: List of documents required to be maintained or submitted during the provisional period
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