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Trade Contract for Indonesia

Trade Contract Template for Indonesia

A comprehensive trade contract governed by Indonesian law that establishes the terms and conditions for commercial trading activities between parties. This document incorporates requirements from the Indonesian Civil Code (KUH Perdata) and Trade Law No. 7 of 2014, addressing crucial aspects such as product specifications, pricing, delivery terms, quality standards, and payment mechanisms. It includes provisions for both domestic and international trade relationships, ensuring compliance with Indonesian customs regulations and international trade practices while providing a clear framework for dispute resolution under Indonesian jurisdiction.

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What is a Trade Contract?

This Trade Contract template is designed for use in commercial trading activities within the Indonesian legal framework. It serves as a fundamental agreement between parties engaging in the purchase, sale, or exchange of goods or services, whether in domestic or international trade. The document incorporates essential requirements from Indonesian law, particularly the Civil Code (KUH Perdata) and Trade Law No. 7 of 2014, while also accommodating international trade practices where applicable. It is particularly suitable for businesses establishing ongoing trading relationships, requiring detailed terms for product specifications, quality standards, delivery arrangements, and payment terms. The contract includes provisions for regulatory compliance, risk allocation, and dispute resolution specific to the Indonesian jurisdiction, making it a crucial tool for protecting parties' interests in trading relationships.

What sections should be included in a Trade Contract?

1. Parties: Identification and details of the contracting parties, including registration numbers and addresses

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

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

4. Scope of Trade: Detailed description of goods/services to be traded

5. Price and Payment Terms: Pricing structure, payment methods, and payment schedules

6. Delivery Terms: Delivery obligations, Incoterms (if applicable), timing, and logistics arrangements

7. Quality Standards: Product specifications, quality requirements, and inspection procedures

8. Warranties and Representations: Standard warranties regarding product quality, compliance with laws, and authority to contract

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Force Majeure: Events excusing performance and procedures during force majeure

11. Dispute Resolution: Procedures for resolving disputes, choice of forum, and governing law

12. Confidentiality: Protection of confidential information exchanged during the trade relationship

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

What sections are optional to include in a Trade Contract?

1. Insurance: Required when specific insurance coverage needs to be maintained by either party

2. Intellectual Property: Necessary when the trade involves branded products or licensed technology

3. Customs and Export Controls: Required for international trade contracts involving import/export

4. Exclusivity: Optional provisions for exclusive trading rights or territories

5. Minimum Purchase Requirements: Used when establishing minimum order quantities or purchase commitments

6. Training and Support: Relevant when technical products require seller support or training

7. Environmental Compliance: Important for trades involving environmentally sensitive goods

8. Anti-Corruption Compliance: Required for high-value international trades or government-related contracts

What schedules should be included in a Trade Contract?

1. Schedule 1 - Product Specifications: Detailed technical specifications of products being traded

2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume discounts or price adjustment mechanisms

3. Schedule 3 - Delivery Schedule: Specific delivery timelines and locations

4. Schedule 4 - Quality Standards and Testing Procedures: Detailed quality control processes and acceptance criteria

5. Schedule 5 - Key Performance Indicators: Metrics for measuring performance under the contract

6. Appendix A - Required Certifications: Copies of necessary trading licenses and certifications

7. Appendix B - Insurance Requirements: Specific insurance coverage requirements and proof of insurance

8. Appendix C - Compliance Documents: Required regulatory compliance documentation

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

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions







































Clauses





































Relevant Industries

Manufacturing

Agriculture

Mining

Textiles

Consumer Goods

Electronics

Automotive

Chemical

Food and Beverage

Pharmaceuticals

Commodities

Retail

Technology

Energy

Construction Materials

Relevant Teams

Legal

Procurement

Supply Chain

Commercial

International Trade

Sales

Compliance

Operations

Finance

Risk Management

Logistics

Business Development

Relevant Roles

Procurement Manager

Supply Chain Director

Trade Compliance Officer

Commercial Director

International Trade Manager

Purchasing Manager

Sales Director

Contract Manager

Legal Counsel

Chief Commercial Officer

Import/Export Manager

Logistics Manager

Business Development Manager

Operations Director

Risk Manager

Finance Director

Industries








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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