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Intent Of Sale Agreement for Indonesia

Intent Of Sale Agreement Template for Indonesia

An Intent of Sale Agreement under Indonesian law is a preliminary document that outlines the proposed terms and conditions for a future sale transaction. This document serves as a framework for negotiations and typically includes key elements such as the identification of parties, description of assets or property to be sold, proposed purchase price, and timeline for due diligence and completion. While primarily non-binding except for specific provisions (such as confidentiality and exclusivity), it must comply with Indonesian Civil Code requirements and relevant sector-specific regulations. The agreement helps parties establish clear expectations and demonstrates serious intent while maintaining flexibility for detailed negotiations in the final sale agreement.

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What is a Intent Of Sale Agreement?

The Intent of Sale Agreement is a crucial preliminary document used in Indonesian business transactions when parties wish to formalize their initial understanding regarding a potential sale while maintaining flexibility for detailed negotiations. This document type is particularly valuable in complex transactions where detailed due diligence is required before proceeding to a definitive agreement. It typically outlines key commercial terms, timeframes, and any binding obligations (such as confidentiality and exclusivity) while clearly stating which elements are non-binding. The agreement must comply with Indonesian Civil Code (KUHPerdata) requirements and may need to address specific regulatory considerations depending on the transaction type, such as foreign investment restrictions or sector-specific regulations. It serves as a roadmap for the transaction while protecting both parties' interests during the negotiation phase.

What sections should be included in a Intent Of Sale Agreement?

1. Parties: Identification and details of the potential seller and buyer, including complete legal names, addresses, and registration numbers for companies

2. Background: Context of the proposed transaction and brief description of the subject matter of the intended sale

3. Definitions: Key terms used throughout the document defined for clarity and consistency

4. Subject Matter of Sale: Detailed description of the asset(s) or property intended to be sold

5. Proposed Purchase Price: Indication of the intended purchase price or pricing mechanism

6. Due Diligence: Terms regarding the buyer's right to conduct due diligence and the seller's obligations to provide information

7. Timeline: Proposed schedule for completing due diligence, negotiating definitive agreements, and closing the transaction

8. Exclusivity: Terms regarding whether the seller is prohibited from negotiating with other parties during a specified period

9. Confidentiality: Obligations regarding the confidential treatment of information exchanged

10. Legal Effect: Clear statement of which provisions are binding (typically confidentiality, exclusivity, and governing law) and which are non-binding

11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and choice of forum for disputes

12. Signature: Execution block for authorized representatives of both parties

What sections are optional to include in a Intent Of Sale Agreement?

1. Break Fee: Terms regarding any fee payable if either party decides not to proceed with the transaction, used in larger transactions or where significant due diligence costs are expected

2. Conditions Precedent: Key conditions that must be satisfied before parties are obligated to proceed, included when regulatory approvals or third-party consents may be required

3. Costs: Allocation of costs incurred in preparing the agreement and conducting due diligence, included when significant costs are anticipated

4. Good Faith Deposit: Terms regarding any initial deposit to demonstrate serious intent, used in high-value transactions

5. Broker/Finder's Fees: Declarations regarding any intermediaries involved and responsibility for their fees, included when brokers are involved

6. Force Majeure: Provisions for unforeseen circumstances that might affect the transaction timeline, included for longer-term arrangements

What schedules should be included in a Intent Of Sale Agreement?

1. Schedule A - Asset Description: Detailed description or list of assets intended to be sold, including specifications, conditions, or inventory lists

2. Schedule B - Proposed Terms: Key commercial terms and conditions anticipated for the final sale agreement

3. Schedule C - Due Diligence Requirements: List of documents and information to be provided during due diligence

4. Schedule D - Timeline: Detailed timeline with specific milestones and deadlines

5. Appendix 1 - Corporate Documents: Copies of relevant corporate authorizations or registrations

6. Appendix 2 - Asset Documents: Copies of existing titles, certificates, or other relevant documentation related to the assets

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

Letter of Intent

Cost

Free to use
Relevant legal definitions




























Clauses




























Relevant Industries

Real Estate

Manufacturing

Retail

Technology

Energy

Mining

Agriculture

Construction

Transportation

Hospitality

Healthcare

Education

Financial Services

Professional Services

Telecommunications

Relevant Teams

Legal

Corporate Development

Business Development

Finance

Operations

Procurement

Compliance

Risk Management

Commercial

Investment

Asset Management

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Business Development Manager

Corporate Lawyer

Legal Counsel

Commercial Director

Operations Director

Property Manager

Procurement Manager

Investment Manager

Asset Manager

Contract Manager

Company Secretary

Risk Manager

Compliance Officer

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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