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Trial Agreement Template for Indonesia

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Key Requirements PROMPT example:

Trial Agreement

I need a trial agreement for a software product that will be used for a 3-month evaluation period, with the option to purchase a full license at the end of the trial. The agreement should include terms for data privacy, user support during the trial, and a clause for automatic termination if not renewed.

What is a Trial Agreement?

A Trial Agreement lets companies test products, services, or systems before making a full commitment. It sets clear rules for a temporary testing period, usually lasting 14-30 days under Indonesian commercial practice. These agreements protect both parties by defining what can be tested, how it should be used, and who owns any data or results.

Indonesian businesses often use these contracts when exploring new software platforms, equipment, or business partnerships. The agreement must follow Indonesian Civil Code principles and typically includes confidentiality terms, usage limitations, and clear end dates. It's especially important in tech and manufacturing sectors, where companies need to verify compatibility and performance before signing longer-term contracts.

When should you use a Trial Agreement?

Use a Trial Agreement when your company needs to evaluate new technology, equipment, or business solutions before making a major investment. This is especially crucial for Indonesian businesses testing expensive software platforms, manufacturing equipment, or specialized services where compatibility and performance matter.

The agreement becomes essential when testing involves sharing sensitive data, accessing internal systems, or placing test equipment on company premises. Indonesian law requires clear documentation of these temporary arrangements, particularly in regulated industries like financial services, healthcare, and manufacturing. Having this agreement in place protects intellectual property and sets clear boundaries for the trial period.

What are the different types of Trial Agreement?

  • Product Testing Trials: Basic agreements for evaluating physical products or equipment, typically including safety protocols and liability terms under Indonesian standards
  • Software Evaluation Trials: Focused on digital solutions, covering data security, system access, and user limitations per Indonesian cybersecurity regulations
  • Service Pilot Programs: Structured for testing professional services, often including performance metrics and success criteria
  • Research and Development Trials: Detailed agreements for technical collaboration, protecting intellectual property rights under Indonesian law
  • Proof of Concept Trials: Short-term agreements for validating business solutions, with clear milestones and evaluation criteria

Who should typically use a Trial Agreement?

  • Technology Vendors: Provide products or services for trial, often drafting the initial Trial Agreement and setting testing parameters
  • Corporate Legal Teams: Review and modify agreements to protect company interests and ensure compliance with Indonesian regulations
  • IT Departments: Coordinate technical aspects of trials and validate performance requirements
  • Department Managers: Oversee trial implementation and evaluate solution effectiveness for their teams
  • Procurement Officers: Manage vendor relationships and negotiate trial terms before potential full-scale adoption
  • External Legal Counsel: Advise on complex trials or high-value agreements, especially in regulated industries

How do you write a Trial Agreement?

  • Trial Scope: Define exact products/services being tested, duration, and success metrics
  • Party Details: Gather complete company information, registration numbers, and authorized signatories
  • Technical Requirements: Document specific equipment, software, or resources needed for the trial
  • Usage Parameters: Outline permitted users, access levels, and any usage restrictions
  • Data Handling: Specify data protection measures following Indonesian privacy regulations
  • Exit Strategy: Plan clear trial conclusion steps, including data deletion or equipment return
  • Document Generation: Use our platform to create a legally-sound agreement that includes all essential elements

What should be included in a Trial Agreement?

  • Party Information: Complete legal names, addresses, and registration numbers of all parties
  • Trial Specifics: Clear description of products/services, testing period, and success criteria
  • Usage Rights: Detailed permissions and limitations during the trial period
  • Confidentiality: Protection of sensitive information and trade secrets under Indonesian law
  • Data Protection: Compliance with Indonesian data privacy regulations
  • Termination Terms: Conditions for early termination and post-trial obligations
  • Liability Limits: Clear boundaries of responsibility and risk allocation
  • Governing Law: Explicit reference to Indonesian jurisdiction and dispute resolution
  • Signature Block: Proper execution format for Indonesian legal entities

What's the difference between a Trial Agreement and an Asset Purchase Agreement?

A Trial Agreement differs significantly from an Asset Purchase Agreement in both purpose and commitment level. While both documents involve business transactions, their scope and obligations vary considerably under Indonesian law.

  • Duration and Commitment: Trial Agreements are temporary and exploratory, typically lasting 14-30 days, while Asset Purchase Agreements represent permanent transfers of ownership
  • Financial Obligations: Trial Agreements usually involve minimal or no costs beyond setup fees, whereas Asset Purchase Agreements include substantial financial commitments
  • Risk Level: Trial Agreements carry limited liability and easy termination options, while Asset Purchase Agreements involve significant legal and financial exposure
  • Legal Purpose: Trial Agreements focus on testing and evaluation, while Asset Purchase Agreements facilitate permanent business asset transfers with full warranties and representations

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