The Exclusive Buyer Agreement is a crucial commercial contract used when a seller wishes to establish a dedicated buying channel through a single buyer in a specific territory under Indonesian law. This document is particularly valuable for businesses looking to maintain control over their distribution channels, ensure consistent market presence, or establish strong partnerships with key buyers. The agreement must carefully balance the exclusivity provisions with Indonesian competition law requirements, particularly Law No. 5 of 1999, to avoid any anti-competitive practices. It typically includes detailed terms on minimum purchase commitments, territory definitions, pricing structures, and performance obligations, while incorporating necessary safeguards to protect both parties' interests and ensure compliance with Indonesian commercial regulations.
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1. Parties: Identification of the seller and the exclusive buyer, including their legal status and registered addresses
2. Background: Context of the agreement, relationship between parties, and general purpose of the exclusive buying arrangement
3. Definitions: Definitions of key terms used throughout the agreement, including Products, Territory, and Exclusivity Period
4. Appointment and Scope: Terms of exclusive appointment, scope of products/services covered, and territorial limits
5. Duration and Renewal: Initial term of the agreement and any renewal provisions
6. Exclusivity Obligations: Detailed terms of exclusivity, including seller's commitment not to sell to others in the territory
7. Minimum Purchase Requirements: Specified minimum purchase quantities or values the buyer must meet to maintain exclusivity
8. Pricing and Payment Terms: Pricing structure, payment terms, and any price adjustment mechanisms
9. Delivery and Logistics: Terms regarding delivery, shipping, and transfer of risk
10. Quality Standards: Quality requirements for products and quality control procedures
11. Representations and Warranties: Standard warranties regarding product quality, compliance with laws, and authority to enter agreement
12. Termination: Grounds for termination, notice requirements, and consequences of termination
13. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution procedures
14. General Provisions: Standard boilerplate clauses including force majeure, notices, and assignment
1. Marketing and Promotion: Obligations regarding marketing and promotion of products - include if buyer has marketing responsibilities
2. Intellectual Property Rights: Protection and usage of trademarks and other IP - include if branded products are involved
3. Non-Competition: Restrictions on buyer's ability to deal in competing products - include if exclusivity extends to competitive activities
4. Storage and Warehousing: Requirements for product storage - include if specific storage conditions are necessary
5. Training and Support: Seller's obligations to provide training - include if products require technical knowledge
6. Insurance: Insurance requirements - include if high-value products or specific risks need coverage
7. Compliance with Trade Regulations: Specific compliance obligations - include if regulated products or cross-border trade involved
1. Schedule 1: Product Specifications: Detailed specifications of products covered by the agreement
2. Schedule 2: Pricing Schedule: Detailed pricing information, including any volume discounts or special pricing arrangements
3. Schedule 3: Territory Definition: Detailed description or map of the exclusive territory
4. Schedule 4: Minimum Purchase Quantities: Detailed breakdown of minimum purchase requirements by period
5. Schedule 5: Quality Standards and Procedures: Detailed quality control procedures and standards
6. Appendix A: Delivery Terms: Detailed delivery requirements, including lead times and shipping terms
7. Appendix B: Reporting Templates: Standard forms for regular reporting requirements
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Agriculture
Mining
Consumer Goods
Industrial Products
Technology
Automotive
Pharmaceuticals
Food and Beverage
Chemicals
Electronics
Textiles
Construction Materials
Energy
Relevant Teams
Legal
Procurement
Commercial
Supply Chain
Business Development
Operations
Sales
Vendor Management
Contract Administration
Risk Management
Relevant Roles
Procurement Manager
Commercial Director
Supply Chain Manager
Legal Counsel
Business Development Manager
Purchasing Director
Contract Manager
Sales Director
Chief Commercial Officer
Operations Manager
Vendor Manager
Category Manager
Strategic Sourcing Manager
General Manager
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