The Authorization Agreement is a crucial legal instrument in Indonesian business and personal affairs, used to formally delegate authority from one party (principal) to another (agent). This document type is essential when an individual or entity needs to authorize another to act on their behalf, whether for specific transactions, ongoing business operations, or other legal matters. The agreement must comply with Indonesian Civil Code requirements and often requires notarization for legal validity. Authorization Agreements are particularly important in Indonesia's business environment, where formal documentation of authority is frequently required by government agencies, banks, and other institutions. The document typically includes detailed provisions on the scope of authority, duration, obligations, and limitations, ensuring clear boundaries of the agent's powers while protecting both parties' interests under Indonesian law.
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1. Parties: Identification of the Principal (authorizing party) and the Agent (authorized party), including their full legal names, addresses, and any relevant registration numbers
2. Background: Context of the authorization agreement, relationship between parties, and purpose of the authorization
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Authority: Detailed description of the powers and authority being granted to the Agent
5. Duration: Term of the authorization, including commencement date and expiry or termination conditions
6. Obligations of the Agent: Duties, responsibilities, and standard of care required from the Agent
7. Rights and Obligations of the Principal: Principal's duties, including provision of information and resources necessary for the Agent to perform
8. Limitation of Authority: Specific restrictions on the Agent's authority and actions requiring Principal's prior approval
9. Reporting Requirements: Agent's obligations to report activities and maintain records
10. Termination: Circumstances and procedures for terminating the authorization
11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
12. Execution: Formal execution requirements including witness and/or notarization provisions as required under Indonesian law
1. Sub-delegation Rights: Include when the Agent may need to delegate authority to others, specifying conditions and limitations
2. Compensation: Include when the Agent will receive payment or reimbursement for services
3. Confidentiality: Include when the Agent will have access to confidential information
4. Indemnification: Include when specific indemnification provisions are needed beyond standard legal protections
5. Insurance: Include when the Agent needs to maintain specific insurance coverage
6. Force Majeure: Include when needed to address circumstances preventing performance
7. Language: Include when the agreement needs to be in multiple languages (common in Indonesia)
8. Notices: Include when formal communication procedures need to be specified
1. Schedule 1 - Detailed Scope of Authority: Comprehensive list of specific actions and decisions the Agent is authorized to make
2. Schedule 2 - Authorized Representatives: List of specific individuals authorized to act as representatives under the agreement
3. Schedule 3 - Required Forms and Procedures: Standard forms, procedures, or documents to be used in exercising the authority
4. Schedule 4 - Fee Schedule: Details of any fees, expenses, or compensation (if applicable)
5. Appendix A - Power of Attorney Template: Standard form of power of attorney to be used for specific actions
6. Appendix B - Reporting Templates: Standard forms for required reporting and documentation
Authors
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Real Estate
Manufacturing
Trading and Distribution
Professional Services
Construction
Healthcare
Education
Technology
Retail
Energy
Transportation and Logistics
Relevant Teams
Legal
Compliance
Corporate Secretariat
Operations
Finance
Human Resources
Risk Management
Business Development
Procurement
Sales
Project Management
Relevant Roles
Chief Executive Officer
Managing Director
Legal Counsel
Corporate Secretary
Operations Manager
Business Development Manager
Procurement Manager
Human Resources Director
Finance Director
Regional Manager
Country Manager
Compliance Officer
Risk Manager
Project Manager
Sales Director
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