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Fee Agreement Contract for Indonesia

Fee Agreement Contract Template for Indonesia

A Fee Agreement Contract governed by Indonesian law that establishes the terms and conditions for professional services rendered and their associated compensation. This document outlines the fee structure, payment terms, scope of services, and obligations of both parties while ensuring compliance with Indonesian regulations, including the mandatory use of Bahasa Indonesia as the primary contract language. It incorporates specific provisions required under Indonesian Civil Code (KUHPerdata) and relevant commercial laws, making it suitable for both domestic and international business relationships within the Indonesian jurisdiction.

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What is a Fee Agreement Contract?

The Fee Agreement Contract serves as a crucial legal instrument in Indonesian business relationships where professional services are rendered for agreed-upon compensation. This document is essential when establishing clear terms for service fees, payment schedules, and delivery expectations between service providers and their clients. It must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata) and Law No. 24 of 2009 regarding language requirements. The agreement is commonly used in professional services, consulting arrangements, and various business sectors where fee-based services are provided. It includes comprehensive details about service scope, payment terms, currency considerations (as per Law No. 7 of 2011), and performance expectations, while incorporating necessary safeguards for both parties' interests.

What sections should be included in a Fee Agreement Contract?

1. Parties: Identification and details of all parties entering into the fee agreement

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

3. Definitions: Key terms used throughout the agreement and their specific meanings

4. Scope of Services: Detailed description of services to be provided in exchange for fees

5. Fee Structure: Comprehensive breakdown of fees, rates, and payment terms

6. Payment Terms: Timing, method, and currency of payments, including invoicing procedures

7. Duration: Term of the agreement, including start date and end date if applicable

8. Obligations of Service Provider: Responsibilities and commitments of the party providing services

9. Obligations of Client: Responsibilities and commitments of the party paying fees

10. Termination: Conditions and procedures for ending the agreement

11. Governing Law: Specification of Indonesian law as governing law and jurisdiction

12. Language: Statement on agreement language (Bahasa Indonesia requirement with optional English translation)

13. Execution: Signature blocks and execution requirements

What sections are optional to include in a Fee Agreement Contract?

1. Intellectual Property Rights: Include when services involve creation or use of intellectual property

2. Confidentiality: Include when sensitive information will be shared between parties

3. Force Majeure: Include when need to address unforeseen circumstances preventing performance

4. Non-Competition: Include when restricting service provider from competing activities

5. Insurance: Include when specific insurance coverage is required

6. Dispute Resolution: Include when specific dispute resolution mechanisms (mediation/arbitration) are preferred

7. Assignment: Include when transfer of rights needs to be addressed

8. Performance Metrics: Include when service quality measurements are necessary

9. Currency Risk: Include for international agreements with foreign currency considerations

What schedules should be included in a Fee Agreement Contract?

1. Schedule A - Fee Schedule: Detailed breakdown of all fees, rates, and pricing structures

2. Schedule B - Service Specifications: Detailed description of services, deliverables, and performance standards

3. Schedule C - Payment Schedule: Timeline of payments and milestone-based payment terms

4. Appendix 1 - Required Documentation: List of required documents, licenses, or certifications

5. Appendix 2 - Contact Details: Key contact persons and their details for both parties

6. Appendix 3 - Service Level Agreement: Specific performance metrics and service standards if applicable

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

Fee Agreement

Cost

Free to use
Relevant legal definitions






























Clauses































Relevant Industries

Professional Services

Consulting

Information Technology

Legal Services

Financial Services

Education

Healthcare

Engineering

Architecture

Management Consulting

Real Estate

Construction

Relevant Teams

Legal

Finance

Procurement

Operations

Compliance

Human Resources

Commercial

Business Development

Contract Administration

Risk Management

Relevant Roles

Legal Counsel

Contract Manager

Business Development Manager

Finance Director

Chief Financial Officer

Project Manager

Procurement Manager

Operations Director

Managing Director

Compliance Officer

Human Resources Manager

Commercial Director

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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