The Sale of Equipment Contract is a crucial legal instrument used in Indonesian business transactions for the purchase and sale of industrial, technical, or specialized equipment. This document is essential when businesses need to formalize equipment transactions while ensuring compliance with Indonesian law, particularly the Civil Code (KUHPerdata) and relevant trade regulations. It should be used whenever there is a significant equipment purchase that requires detailed documentation of specifications, warranties, maintenance requirements, and after-sale services. The contract provides comprehensive protection for both parties by clearly defining payment terms, delivery conditions, testing procedures, and liability limitations. It is particularly important in cross-border transactions where Indonesian import regulations must be considered, and in cases where the equipment requires specific technical compliance or certification under Indonesian law.
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1. Parties: Identification of the seller and buyer, including their legal names, registration numbers, and addresses
2. Background: Context of the transaction and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Equipment Description: General description of the equipment being sold, referencing detailed specifications in the schedule
5. Purchase Price and Payment Terms: Details of the purchase price, payment schedule, and payment methods
6. Delivery and Installation: Terms regarding delivery, timing, location, and installation requirements
7. Title and Risk: Transfer of ownership and risk in the equipment
8. Warranties and Representations: Warranties regarding the equipment's condition, performance, and compliance with Indonesian standards
9. Inspection and Testing: Procedures for inspection and testing of the equipment upon delivery
10. Defects and Returns: Process for handling defective equipment and return procedures
11. Maintenance and Support: Basic maintenance requirements and support obligations
12. Limitation of Liability: Limitations on parties' liability in accordance with Indonesian law
13. Force Majeure: Provisions for unforeseen circumstances preventing performance
14. Termination: Grounds and procedures for contract termination
15. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution procedures
16. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement
1. Import Requirements: Required for imported equipment, detailing compliance with Indonesian import regulations
2. Training: Include when seller is required to provide training for equipment operation
3. Software License: Required when equipment includes software components
4. Intellectual Property: Include when equipment involves patents, trademarks, or other IP rights
5. Confidentiality: Required when parties exchange sensitive technical or business information
6. Insurance: Include when specific insurance requirements are needed for high-value equipment
7. Security Interest: Include when seller retains security interest until full payment
8. Export Controls: Required for equipment subject to export control regulations
9. Environmental Compliance: Include for equipment with environmental impact considerations
10. Spare Parts: Include when ongoing supply of spare parts is part of the agreement
1. Schedule 1 - Technical Specifications: Detailed technical specifications of the equipment
2. Schedule 2 - Pricing Schedule: Detailed breakdown of pricing, including any additional costs
3. Schedule 3 - Delivery Schedule: Detailed timeline for delivery and installation milestones
4. Schedule 4 - Acceptance Testing Procedures: Detailed procedures for testing and accepting the equipment
5. Schedule 5 - Warranty Terms: Detailed warranty terms and conditions
6. Schedule 6 - Maintenance Requirements: Detailed maintenance procedures and schedules
7. Appendix A - Required Certifications: Copies of required Indonesian certification documents
8. Appendix B - Installation Requirements: Site preparation and installation requirements
9. Appendix C - Training Materials: Training documentation and materials if applicable
10. Appendix D - Support Services: Detailed description of support services if included
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Industrial Equipment
Technology
Healthcare
Education
Mining
Construction
Agriculture
Transportation
Energy
Telecommunications
Chemical Processing
Automotive
Aerospace
Food Processing
Relevant Teams
Legal
Procurement
Operations
Finance
Engineering
Technical Services
Compliance
Risk Management
Quality Assurance
Supply Chain
Commercial
Project Management
Facilities Management
Relevant Roles
Procurement Manager
Supply Chain Director
Operations Manager
Technical Director
Chief Financial Officer
Legal Counsel
Compliance Officer
Facilities Manager
Project Manager
Engineering Manager
Commercial Director
Contract Administrator
Equipment Specialist
Technical Supervisor
Purchase Officer
Risk Manager
Quality Assurance Manager
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