The Conditional Contract is a sophisticated legal instrument used in Indonesian business transactions where parties wish to create binding obligations that are dependent on specific conditions being met. This document type is particularly relevant when dealing with complex transactions that require certain prerequisites, such as regulatory approvals, third-party consents, or specific performance criteria. The agreement must comply with Indonesian Civil Code provisions and often includes detailed mechanisms for verifying condition satisfaction, time limits, and consequences of non-fulfillment. It's commonly used in property transactions, corporate acquisitions, project finance, and other commercial arrangements where parties need to establish clear frameworks for conditional obligations. The document must be drafted in accordance with Indonesian law requirements, including language provisions when international parties are involved, and typically includes comprehensive provisions for dispute resolution within the Indonesian legal system.
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1. Parties: Identification and details of all contracting parties
2. Background: Context and purpose of the agreement, including the general nature of the conditional arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including specific conditions
4. Conditions: Detailed description of all conditions precedent and/or subsequent that must be fulfilled
5. Rights and Obligations Prior to Satisfaction of Conditions: Parties' responsibilities and rights before conditions are met
6. Consequences of Satisfaction of Conditions: Effects and obligations that arise when conditions are fulfilled
7. Consequences of Non-Satisfaction of Conditions: Procedures and implications if conditions are not met within specified timeframes
8. Time Periods: Deadlines for satisfaction of conditions and any extension mechanisms
9. Representations and Warranties: Standard and specific representations and warranties from each party
10. Notification Requirements: Procedures for notifying satisfaction or non-satisfaction of conditions
11. Termination: Grounds and procedures for termination of the agreement
12. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Regulatory Compliance: Required when the contract involves regulated industries or activities requiring specific compliance measures
2. Insurance: Include when specific insurance requirements are needed as part of the conditions
3. Confidentiality: Required when sensitive information will be exchanged during the conditional period
4. Force Majeure: Include when external events could impact the ability to satisfy conditions
5. Assignment: Include when transfer of rights needs to be restricted or permitted under specific circumstances
6. Language Requirements: Required when one party is non-Indonesian, specifying dual language requirements and controlling language
7. Security Arrangements: Include when conditions involve provision of guarantees, bonds, or other security
8. Step-In Rights: Include when one party needs rights to take over obligations if conditions are not met
1. Schedule of Conditions: Detailed list and description of all conditions to be satisfied
2. Schedule of Documents: List of documents required to evidence satisfaction of conditions
3. Timeline Schedule: Detailed timeline for satisfaction of various conditions
4. Form of Notice: Template notices for confirming satisfaction or non-satisfaction of conditions
5. Required Approvals: List of regulatory or third-party approvals needed
6. Security Documents: Forms of any required guarantees or security arrangements
7. Technical Requirements: Technical specifications or requirements that form part of the conditions
8. Contact Details: Contact information for key personnel responsible for condition satisfaction
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Banking and Finance
Manufacturing
Technology
Mining and Resources
Infrastructure
Telecommunications
Retail
Energy
Agriculture
Healthcare
Education
Transportation
Hospitality
Relevant Teams
Legal
Compliance
Risk Management
Commercial
Business Development
Operations
Finance
Project Management
Procurement
Corporate Affairs
Investment
Property Management
Contract Administration
Regulatory Affairs
Strategy
Relevant Roles
Legal Counsel
Contract Manager
Business Development Manager
Project Manager
Commercial Director
Chief Legal Officer
Compliance Officer
Risk Manager
Investment Manager
Operations Director
Chief Financial Officer
Property Manager
Procurement Manager
Corporate Secretary
General Manager
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