The Conditional Agreement is a sophisticated legal instrument used in Indonesian business transactions where certain prerequisites must be satisfied before the agreement becomes fully operational. It is particularly relevant in scenarios involving regulatory approvals, corporate restructuring, property transfers, or complex commercial arrangements. The document addresses the specific requirements of Indonesian law, including the Civil Code (KUHPerdata) provisions on conditional obligations and Law No. 24 of 2009's language requirements. This type of agreement is essential when parties need to establish clear mechanisms for condition fulfillment, verification procedures, and consequence management, while ensuring compliance with Indonesian regulatory frameworks and business practices.
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1. Parties: Identification of all contracting parties with complete legal names and addresses
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement, including specific definitions related to conditions
4. Conditions Precedent: Detailed listing of all conditions that must be fulfilled before the agreement becomes effective
5. Condition Fulfillment Process: Procedures for satisfying conditions and verifying their completion
6. Rights and Obligations Prior to Condition Fulfillment: Parties' responsibilities during the interim period before conditions are met
7. Post-Fulfillment Obligations: Core obligations that become effective once conditions are satisfied
8. Time Periods and Deadlines: Timeframes for condition fulfillment and consequences of non-fulfillment
9. Representations and Warranties: Standard and condition-specific representations by all parties
10. Termination: Grounds for termination, including failure to satisfy conditions
11. Governing Law and Jurisdiction: Confirmation of Indonesian law application and dispute resolution mechanism
12. Language: Language provisions complying with Law No. 24 of 2009
13. Miscellaneous: Standard boilerplate provisions
1. Conditions Subsequent: Include when there are conditions that must be maintained after agreement effectiveness
2. Security Arrangements: Include when conditional performance requires security or guarantees
3. Break Fee Provisions: Include when parties agree on compensation for failure to satisfy conditions
4. Regulatory Compliance: Include when conditions involve regulatory approvals
5. Third Party Rights: Include when conditions involve or affect third party rights
6. Force Majeure: Include when external events might affect condition fulfillment
7. Step-In Rights: Include when parties need rights to fulfill conditions on behalf of others
1. Condition Precedent Checklist: Detailed list of all required conditions and their status
2. Form of Condition Satisfaction Notice: Template for formally confirming condition fulfillment
3. Required Documents: List and forms of documents needed for condition fulfillment
4. Timeline: Detailed schedule of condition fulfillment deadlines
5. Corporate Authorizations: Required corporate approvals and authorizations
6. Regulatory Requirements: List of required regulatory approvals or filings
7. Form of Certificates: Templates for any required certificates or confirmations
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