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Business Agreement Between Two Companies for Indonesia

Business Agreement Between Two Companies Template for Indonesia

A comprehensive business agreement template designed for use between two companies operating under Indonesian law. This document provides a structured framework for establishing and managing business relationships between corporate entities, ensuring compliance with Indonesian corporate law, investment regulations, and commercial requirements. The agreement incorporates essential provisions required by Indonesian legislation, including mandatory corporate governance elements, dispute resolution mechanisms aligned with Indonesian jurisdiction, and necessary regulatory compliance measures.

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Business Agreement Between Two Companies

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What is a Business Agreement Between Two Companies?

This Business Agreement Between Two Companies template is designed for use in the Indonesian business environment, providing a comprehensive framework for establishing formal business relationships between corporate entities. The document is particularly relevant when companies need to formalize their business arrangements, whether for supply agreements, service provisions, distribution arrangements, or other commercial relationships. It incorporates key requirements under Indonesian law, including provisions from the Civil Code, Company Law No. 40 of 2007, and relevant investment regulations. The agreement is structured to accommodate various business sectors while ensuring compliance with local regulatory requirements, making it suitable for both domestic and international business relationships where Indonesian law governs. The template includes essential provisions for corporate authority, business operations, regulatory compliance, and dispute resolution mechanisms specific to the Indonesian jurisdiction.

What sections should be included in a Business Agreement Between Two Companies?

1. Parties: Identification of the contracting companies, including their full legal names, registration numbers, and authorized representatives

2. Background: Context of the agreement and the business relationship between the parties

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

4. Scope of Agreement: Detailed description of the business relationship and services/goods to be exchanged

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Rights and Obligations: Detailed responsibilities and rights of each party

7. Financial Terms: Pricing, payment terms, invoicing, and related financial obligations

8. Representations and Warranties: Legal assurances and guarantees made by each party

9. Confidentiality: Protection of confidential information and trade secrets

10. Intellectual Property: Ownership and usage rights of intellectual property

11. Termination: Conditions and procedures for ending the agreement

12. Force Majeure: Provisions for unforeseen circumstances preventing performance

13. Governing Law: Specification of Indonesian law as governing law

14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and venue

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Business Agreement Between Two Companies?

1. Compliance with Anti-Corruption Laws: Required when dealing with government contracts or high-value transactions

2. Export/Import Controls: Necessary when the agreement involves international trade

3. Data Protection: Required when personal or sensitive data processing is involved

4. Environmental Compliance: Necessary for agreements involving industrial or manufacturing activities

5. Insurance Requirements: Important when significant operational risks are involved

6. Performance Guarantees: Required for agreements involving significant deliverables or project completion

7. Change Control: Necessary for long-term or complex service agreements

8. Business Continuity: Important for critical business relationships or essential services

What schedules should be included in a Business Agreement Between Two Companies?

1. Schedule 1 - Service Level Agreement: Detailed performance metrics and service standards

2. Schedule 2 - Pricing and Payment Terms: Detailed breakdown of pricing, payment schedules, and financial terms

3. Schedule 3 - Technical Specifications: Detailed technical requirements or product specifications

4. Schedule 4 - Key Personnel: List of key personnel responsible for agreement implementation

5. Schedule 5 - Compliance Requirements: Specific regulatory and compliance obligations

6. Appendix A - Required Licenses and Permits: List of necessary regulatory approvals and licenses

7. Appendix B - Form of Invoice: Template for invoicing and financial documentation

8. Appendix C - Contact Details: Contact information for key representatives and notices

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

Cost

Free to use
Relevant legal definitions













































Clauses






































Relevant Industries

Manufacturing

Technology

Trade and Commerce

Financial Services

Logistics and Transportation

Construction

Energy and Resources

Agriculture and Food Processing

Healthcare and Pharmaceuticals

Telecommunications

Professional Services

Retail and Consumer Goods

Relevant Teams

Legal

Compliance

Corporate Secretariat

Business Development

Commercial Operations

Procurement

Finance

Risk Management

Operations

Project Management

Corporate Affairs

Relevant Roles

Chief Executive Officer

Managing Director

Legal Director

Chief Legal Officer

Commercial Director

Business Development Manager

Contract Manager

Corporate Secretary

Compliance Officer

Operations Director

Chief Financial Officer

Procurement Manager

Project Manager

General Counsel

Risk 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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