Conditional Sales Agreements are essential legal instruments in Indonesian commercial practice, particularly used in transactions where goods are sold on an installment basis or subject to specific conditions before ownership transfer. These agreements are commonly utilized in both business-to-business and business-to-consumer contexts, especially for high-value items such as vehicles, machinery, or equipment. The document must comply with Indonesian Civil Code requirements and specific regulations governing conditional sales, including consumer protection laws and fiduciary security regulations. It's crucial for businesses operating in Indonesia to use properly structured Conditional Sales Agreements to ensure enforceability and protect their interests while maintaining compliance with local laws. The agreement typically includes detailed payment terms, conditions for ownership transfer, maintenance requirements, and default provisions, making it a comprehensive document for managing conditional sale transactions.
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1. Parties: Identification and details of the Seller and Buyer, including their legal status and authority to enter into the agreement
2. Background: Context of the transaction and brief description of the conditional sale arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Object of Sale: Detailed description of the goods or property being sold conditionally
5. Purchase Price: Total purchase price and breakdown of any components
6. Payment Terms: Payment schedule, installment amounts, and payment methods
7. Retention of Title: Clause specifying that ownership remains with the seller until full payment is received
8. Delivery and Risk: Terms regarding delivery of goods and transfer of risk
9. Buyer's Obligations: Responsibilities of the buyer including maintenance and insurance of goods
10. Default and Remedies: Consequences of payment default and available remedies
11. Transfer of Ownership: Conditions and process for final transfer of ownership
12. Representations and Warranties: Standard warranties regarding the condition and ownership of goods
13. Governing Law: Specification of Indonesian law as governing law
14. Dispute Resolution: Process for resolving disputes between parties
1. Insurance: Detailed insurance requirements when the goods are of high value or require specific coverage
2. Security Deposit: Terms for security deposit if required for high-value items
3. Maintenance and Use: Specific requirements for maintenance and permitted use of goods during the payment period
4. Registration: Requirements for registration of security interest or fiduciary transfer when applicable
5. Export Restrictions: Restrictions on export or movement of goods outside Indonesia if applicable
6. Third-Party Rights: Provisions regarding third-party rights or restrictions when relevant
7. Force Majeure: Provisions for unforeseen circumstances affecting contract performance
1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods being sold
2. Schedule 2 - Payment Schedule: Detailed breakdown of installment payments, dates, and amounts
3. Schedule 3 - Delivery Schedule: Timeline and details for delivery of goods if delivered in multiple installments
4. Schedule 4 - Condition Report: Initial condition report of goods at time of delivery
5. Appendix A - Required Insurance Coverage: Specific insurance requirements and minimum coverage amounts
6. Appendix B - Maintenance Requirements: Detailed maintenance and servicing requirements during the payment period
Relevant legal definitions
Clauses
Relevant Industries
Automotive
Industrial Equipment
Consumer Electronics
Real Estate
Manufacturing
Retail
Heavy Machinery
Construction Equipment
Agricultural Equipment
Medical Equipment
Transportation
Furniture and Home Appliances
Relevant Teams
Legal
Finance
Sales
Compliance
Credit and Collections
Operations
Risk Management
Commercial
Business Development
Contract Administration
Relevant Roles
Sales Manager
Legal Counsel
Finance Director
Credit Manager
Commercial Director
Compliance Officer
Contract Administrator
Risk Manager
Business Development Manager
Operations Manager
Chief Financial Officer
General Counsel
Sales Representative
Account Manager
Collections Manager
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