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Retail Sales Agreement for Indonesia

Retail Sales Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the sale of products between a supplier/manufacturer and a retail business. The document addresses key aspects including ordering processes, pricing, delivery terms, quality standards, and warranty provisions, while ensuring compliance with Indonesian consumer protection laws and trade regulations. It includes specific provisions for payment terms, risk transfer, returns handling, and dispute resolution mechanisms tailored to the Indonesian business environment.

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What is a Retail Sales Agreement?

The Retail Sales Agreement serves as the primary contractual framework for establishing and managing retail business relationships in Indonesia. This document is essential when a supplier or manufacturer wants to sell products through retail channels, whether traditional stores or modern retail outlets. The agreement ensures compliance with Indonesian regulations, particularly the Trade Law (UU No. 7/2014) and Consumer Protection Law (UU No. 8/1999), while establishing clear commercial terms for both parties. It covers crucial aspects such as product specifications, pricing structures, delivery arrangements, quality standards, and warranty terms. The document is particularly important in Indonesia's rapidly evolving retail landscape, where modern retail practices must align with local business customs and regulatory requirements.

What sections should be included in a Retail Sales Agreement?

1. Parties: Identification of the seller and buyer, including their legal names, registration numbers, addresses, and authorized representatives

2. Background: Context of the agreement, business relationship overview, and general intent of the parties

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

4. Scope of Agreement: Details of products/services covered, territory, and nature of the retail relationship

5. Ordering Process: Procedures for placing and accepting orders, including minimum order quantities if applicable

6. Pricing and Payment Terms: Product pricing, payment methods, terms, and conditions including late payment consequences

7. Delivery and Risk: Delivery terms, transfer of risk, inspection procedures, and acceptance criteria

8. Quality and Warranties: Product quality standards, warranties, and compliance with Indonesian consumer protection laws

9. Returns and Refunds: Procedures for product returns, refunds, and handling of defective goods

10. Term and Termination: Duration of agreement, renewal terms, and termination rights

11. Confidentiality: Protection of confidential information exchanged during the business relationship

12. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms

13. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

What sections are optional to include in a Retail Sales Agreement?

1. Marketing and Promotion: Terms for joint marketing activities, use of trademarks, and promotional requirements - include when parties plan joint marketing efforts

2. Exclusivity: Terms of exclusive dealing arrangements - include when parties agree to exclusive distribution rights

3. E-commerce Provisions: Specific terms for online sales channels - include when products will be sold through digital platforms

4. Storage and Handling: Special requirements for product storage and handling - include for perishable or sensitive goods

5. Training and Support: Terms for product training and technical support - include for complex or technical products

6. Insurance Requirements: Specific insurance coverage requirements - include for high-value products or high-risk activities

7. Compliance with Specific Regulations: Additional compliance requirements - include for regulated products like food, pharmaceuticals, or electronics

What schedules should be included in a Retail Sales Agreement?

1. Schedule 1 - Product List: Detailed list of products covered by the agreement, including specifications and SKUs

2. Schedule 2 - Price List: Current pricing for all products, including any volume discounts or special pricing arrangements

3. Schedule 3 - Service Level Agreement: Detailed service standards including delivery times, fill rates, and performance metrics

4. Schedule 4 - Technical Specifications: Detailed technical requirements and standards for products

5. Schedule 5 - Return Procedures: Detailed procedures for handling returns, including forms and contact information

6. Appendix A - Standard Operating Procedures: Detailed operational procedures for order processing, delivery, and handling

7. Appendix B - Quality Control Standards: Specific quality control requirements and testing procedures

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

Contract to Sell

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Retail

Consumer Goods

Fashion and Apparel

Electronics

Food and Beverage

Cosmetics and Personal Care

Home and Furniture

Sporting Goods

Luxury Goods

Automotive Parts

Pharmaceuticals

Stationery and Office Supplies

Relevant Teams

Legal

Procurement

Commercial

Operations

Supply Chain

Merchandising

Sales

Compliance

Finance

Quality Assurance

Relevant Roles

Retail Operations Manager

Procurement Manager

Commercial Director

Supply Chain Manager

Legal Counsel

Business Development Manager

Store Manager

Category Manager

Merchandise Manager

Sales Director

Contract Administrator

Compliance Officer

Retail Operations Director

Chief Commercial 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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