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Contract For Purchase Of Goods for Indonesia

Contract For Purchase Of Goods Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the purchase and sale of goods between parties. This document complies with the Indonesian Civil Code (KUHPerdata) and relevant commercial regulations, including Law No. 7 of 2014 on Trade and Law No. 8 of 1999 on Consumer Protection. It details essential elements such as product specifications, pricing, delivery terms, quality standards, warranties, and risk allocation, while ensuring compliance with Indonesian language requirements for contracts. The agreement provides a legally binding framework that protects both buyer and seller interests in commercial transactions within the Indonesian jurisdiction.

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Contract For Purchase Of Goods

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What is a Contract For Purchase Of Goods?

The Contract for Purchase of Goods serves as a fundamental legal instrument in Indonesian commercial transactions, essential for businesses engaging in the buying and selling of physical goods. This document type is particularly crucial in the Indonesian context, where commercial transactions must comply with specific regulatory requirements including the Civil Code (KUHPerdata), Trade Law, and Consumer Protection Law. The contract typically outlines comprehensive terms covering product specifications, quality standards, delivery requirements, payment terms, and risk allocation. It's commonly used in both domestic and international trade scenarios, though international transactions may require additional considerations regarding import/export regulations and currency provisions. The document should be drafted in the Indonesian language to comply with Law No. 13 of 2003, with an optional English translation for international parties. It's particularly valuable for recurring purchase arrangements or high-value single transactions where detailed terms and conditions need to be clearly established.

What sections should be included in a Contract For Purchase Of Goods?

1. Parties: Identification of buyer and seller with complete legal names and addresses

2. Background: Context of the transaction and relationship between parties

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

4. Subject Matter of Sale: Clear identification and description of goods being purchased

5. Price and Payment Terms: Purchase price, payment schedule, method of payment, and currency

6. Delivery Terms: Delivery schedule, location, method, and Incoterms (if applicable)

7. Quality and Inspection: Quality standards, inspection procedures, and acceptance criteria

8. Title and Risk: Transfer of ownership and risk of loss

9. Warranties: Seller's warranties regarding goods quality, fitness for purpose, and title

10. Limitation of Liability: Scope and limits of parties' liability

11. Force Majeure: Events excusing performance and procedures for handling such events

12. Term and Termination: Duration of agreement and grounds for termination

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

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

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

What sections are optional to include in a Contract For Purchase Of Goods?

1. Insurance: Insurance requirements when high-value or high-risk goods are involved

2. Intellectual Property: IP rights and licenses when goods involve intellectual property

3. Confidentiality: Confidentiality obligations when sensitive information is shared

4. Import/Export Requirements: Compliance with trade regulations for international transactions

5. Training and Support: When goods require installation, training, or ongoing support

6. Spare Parts and Maintenance: For technical or mechanical goods requiring ongoing maintenance

7. Performance Bond: When security for performance is required

8. Language Provisions: For dual-language contracts, specifying prevailing language

9. Environmental Compliance: For goods subject to environmental regulations

10. Anti-Corruption Compliance: For high-value transactions or government-related purchases

What schedules should be included in a Contract For Purchase Of Goods?

1. Schedule 1 - Product Specifications: Detailed technical specifications of the goods

2. Schedule 2 - Pricing Schedule: Detailed pricing information, including any volume discounts

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

4. Schedule 4 - Quality Standards: Specific quality requirements and testing procedures

5. Schedule 5 - Warranty Terms: Detailed warranty terms and claim procedures

6. Schedule 6 - Service Level Requirements: Performance metrics and service standards if applicable

7. Appendix A - Required Certifications: Copies of required product certifications or permits

8. Appendix B - Form of Purchase Order: Standard form for placing orders under the agreement

9. Appendix C - Acceptance Test Procedures: Procedures for testing and accepting delivered goods

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

Purchase Agreement

Cost

Free to use
Relevant legal definitions





































Clauses




































Relevant Industries

Manufacturing

Retail

Trading

Technology

Consumer Goods

Industrial Equipment

Agriculture

Automotive

Electronics

Textiles

Food and Beverage

Construction Materials

Medical Supplies

Chemical Products

Energy

Relevant Teams

Legal

Procurement

Supply Chain

Finance

Operations

Compliance

Commercial

Quality Assurance

Risk Management

International Trade

Vendor Management

Contract Administration

Relevant Roles

Procurement Manager

Supply Chain Director

Legal Counsel

Commercial Director

Purchasing Officer

Contract Administrator

Operations Manager

Chief Financial Officer

Sales Manager

Compliance Officer

Import/Export Manager

Vendor Relations Manager

Quality Assurance Manager

Business Development Manager

General 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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