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Agency Agreement For Sale Of Products for Indonesia

Agency Agreement For Sale Of Products Template for Indonesia

An Agency Agreement for Sale of Products under Indonesian law establishes a legal relationship between a principal and an agent for the marketing and sale of specified products within Indonesia. This agreement is governed by Indonesian Civil Code (KUH Perdata) and relevant commercial regulations, including Law No. 7 of 2014 on Trade and specific agency regulations. The document outlines the scope of authority, territory rights, commission structures, and operational procedures while ensuring compliance with local legal requirements, including mandatory registration of agency relationships with relevant authorities.

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Agency Agreement For Sale Of Products

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What is a Agency Agreement For Sale Of Products?

The Agency Agreement For Sale of Products is a fundamental commercial document used when a company (Principal) wishes to appoint another party (Agent) to market and sell its products in Indonesia. This arrangement is particularly important for foreign companies seeking to enter the Indonesian market or local companies expanding their distribution network. The agreement must comply with Indonesian law, including the Civil Code and specific agency regulations, while addressing key commercial terms such as territory rights, exclusivity, commission structures, and performance requirements. This document type is essential for establishing clear legal and operational frameworks for product distribution, protecting both parties' interests, and ensuring compliance with local regulatory requirements, including mandatory registration of agency relationships with relevant authorities.

What sections should be included in a Agency Agreement For Sale Of Products?

1. Parties: Identification of the Principal and Agent, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, brief description of the Principal's business and products, and purpose of appointing the Agent

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

4. Appointment and Scope: Terms of Agent's appointment, territory coverage, and whether the appointment is exclusive or non-exclusive

5. Duration and Termination: Term of the agreement, renewal provisions, and grounds for termination

6. Agent's Rights and Obligations: Detailed responsibilities of the Agent, including sales targets, marketing obligations, and reporting requirements

7. Principal's Rights and Obligations: Principal's commitments, including product supply, support, and training obligations

8. Commission Structure: Details of commission rates, calculation methods, and payment terms

9. Product Ordering and Delivery: Procedures for ordering products, delivery terms, and handling of defective products

10. Intellectual Property Rights: Usage rights for trademarks, logos, and other IP owned by the Principal

11. Confidentiality: Protection of confidential information and trade secrets

12. Non-Competition: Restrictions on Agent's ability to represent competing products

13. Compliance with Laws: Obligation to comply with Indonesian laws and regulations

14. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

What sections are optional to include in a Agency Agreement For Sale Of Products?

1. Performance Guarantees: Specific performance targets and consequences of non-achievement - used when Principal requires specific sales targets

2. Training and Support: Detailed provisions for training and support programs - used when extensive product knowledge is required

3. Insurance Requirements: Specific insurance coverage requirements - used for high-value or high-risk products

4. Bank Guarantee: Requirements for bank guarantees - used when financial security is needed

5. Sub-Agents: Provisions for appointment of sub-agents - used when sub-agency arrangements are permitted

6. Marketing and Advertising: Specific marketing requirements and cost allocation - used when extensive marketing is required

7. Force Majeure: Provisions for unforeseen circumstances - used in long-term agreements or volatile markets

8. Data Protection: Specific data protection requirements - used when handling sensitive customer data

What schedules should be included in a Agency Agreement For Sale Of Products?

1. Product List: Detailed list of products covered by the agreement, including specifications and prices

2. Commission Rates: Detailed commission structure, including any variations based on product type or volume

3. Territory Definition: Detailed description of the geographical territory covered by the agreement

4. Performance Targets: Specific sales targets and performance metrics

5. Trademark Usage Guidelines: Specific rules for use of Principal's trademarks and branding

6. Standard Operating Procedures: Detailed procedures for order processing, returns, and customer service

7. Reporting Templates: Standard forms for regular reporting requirements

8. Training Program: Details of required training programs and schedules

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Manufacturing

Consumer Goods

Retail

Technology

Automotive

Pharmaceuticals

Electronics

Food and Beverage

Industrial Equipment

Textiles

Chemical Products

Construction Materials

Agricultural Products

Medical Devices

Relevant Teams

Legal

Sales

Business Development

Operations

Finance

Compliance

Commercial

Distribution

Product Management

Regulatory Affairs

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

Legal Counsel

Contract Manager

Distribution Manager

Regional Sales Manager

Operations Director

Compliance Officer

Finance Director

Product Manager

Channel Manager

Territory Manager

Regulatory Affairs Manager

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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