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Sales Agreement Contract Template for Indonesia

A comprehensive legal document governed by Indonesian law that establishes the terms and conditions for the sale of goods or products between two parties. This agreement complies with the Indonesian Civil Code (KUHPerdata) and relevant commercial regulations, including mandatory dual-language requirements. It details crucial elements such as product specifications, pricing, delivery terms, warranties, and dispute resolution mechanisms, while incorporating specific Indonesian legal requirements for commercial contracts. The agreement provides legal protection for both parties and ensures clarity in their commercial relationship.

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What is a Sales Agreement Contract?

The Sales Agreement Contract is a fundamental commercial document used in Indonesian business transactions to formalize the sale and purchase of goods or products. It is essential for businesses operating in Indonesia's dynamic market, whether for one-time transactions or ongoing supply arrangements. This document must comply with Indonesian legal requirements, including the Indonesian Civil Code (KUHPerdata), Law No. 7 of 2014 on Trade, and relevant consumer protection regulations. The agreement typically includes detailed provisions on product specifications, pricing, delivery terms, warranties, and dispute resolution mechanisms. It is particularly important for establishing clear commercial terms while ensuring legal compliance in Indonesia's civil law system, which requires specific formalities for contract enforcement.

What sections should be included in a Sales Agreement Contract?

1. Parties: Identification of seller and buyer with complete legal details as required under Indonesian law

2. Background: Context of the agreement and general commercial intent of the parties

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

4. Object of Sale: Detailed description of goods/products being sold

5. Price and Payment Terms: Purchase price, payment method, timeline, and currency specifications

6. Delivery Terms: Delivery schedule, method, location, and risk transfer provisions

7. Quality and Specifications: Product quality standards, specifications, and compliance requirements

8. Warranties: Seller's warranties regarding the products and disclaimer of warranties

9. Title and Risk: Transfer of ownership and risk provisions

10. Termination: Conditions and process for agreement termination

11. Governing Law: Confirmation of Indonesian law as governing law

12. Dispute Resolution: Dispute resolution mechanism and jurisdiction

13. Language: Dual language provisions as required by Indonesian law

14. Notices: Communication methods and contact details for official notices

15. Signature: Execution block with required formalities under Indonesian law

What sections are optional to include in a Sales Agreement Contract?

1. Intellectual Property Rights: Include when the sale involves branded products or technology transfers

2. Confidentiality: Include for agreements involving sensitive commercial information

3. Force Majeure: Include for long-term or high-value sales agreements

4. Insurance: Include for high-value goods or where specific risks need coverage

5. Export/Import Provisions: Include for international sales

6. After-Sales Service: Include for technical or complex products requiring ongoing support

7. Return Policy: Include for retail or consumer goods sales

8. Minimum Purchase Commitments: Include for recurring supply arrangements

9. Price Adjustment Mechanism: Include for long-term supply agreements

10. Quality Control and Inspection: Include for manufacturing or industrial goods

What schedules should be included in a Sales Agreement Contract?

1. Product Specifications: Detailed technical specifications of products

2. Price List: Detailed pricing structure including any volume discounts

3. Delivery Schedule: Detailed delivery timelines and locations

4. Quality Standards: Specific quality requirements and testing procedures

5. Warranty Terms: Detailed warranty terms and claim procedures

6. Service Level Agreement: Performance metrics for delivery and support

7. Required Certifications: List of required product certifications and compliance documents

8. Contact Details: List of key contacts for both parties

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Contract to Sell

Cost

Free to use

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