The Conditional Sales Contract is a vital commercial document used in Indonesia when selling valuable goods on an installment basis. This contract type is particularly relevant when the seller wishes to maintain ownership rights until receiving full payment while allowing the buyer to take possession and use of the goods. The document must comply with Indonesian law, including the Civil Code (KUHPerdata), consumer protection regulations, and secured transaction requirements. It's commonly used for vehicle sales, industrial equipment, and other high-value items where immediate full payment isn't feasible. The contract includes essential elements such as detailed payment schedules, security arrangements, warranties, and default provisions, all structured to protect both parties' interests while ensuring enforceability under Indonesian jurisdiction.
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1. Parties: Identification of the seller and buyer, including complete legal names, addresses, and any relevant registration numbers
2. Background: Context of the transaction, nature of the conditional sale, and brief description of the goods being sold
3. Definitions: Key terms used throughout the agreement, including technical terms, payment-related terms, and delivery-related definitions
4. Object of Sale: Detailed description of the goods being sold, including specifications, quantity, and condition
5. Purchase Price and Payment Terms: Total purchase price, down payment requirements, installment amounts, payment schedule, and payment methods
6. Retention of Title: Clear statement that ownership remains with the seller until full payment is received, including provisions for registration of security interest
7. Delivery and Risk: Terms of delivery, transfer of risk, inspection rights, and acceptance procedures
8. Warranties and Representations: Seller's warranties regarding the goods and buyer's representations regarding capacity to pay
9. Default and Remedies: Events of default, cure periods, repossession rights, and consequences of default
10. Insurance: Requirements for insurance coverage of the goods during the payment period
11. Governing Law and Dispute Resolution: Choice of Indonesian law and agreed dispute resolution mechanisms
12. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability
1. Electronic Transactions: Required when the contract will be executed or payments made electronically, incorporating requirements under Law No. 11 of 2008
2. Third-Party Rights: Include when there are guarantors or other third parties involved in securing the buyer's obligations
3. Maintenance and Use Requirements: Include for complex equipment or machinery sales specifying maintenance obligations and proper use requirements
4. Export/Import Provisions: Required when the goods are being imported or may be exported during the payment period
5. Intellectual Property Rights: Include when the goods involve software, patents, or other IP rights
1. Schedule 1 - Goods Specification: Detailed technical specifications, serial numbers, and condition report of the goods
2. Schedule 2 - Payment Schedule: Detailed breakdown of installment amounts, due dates, and payment calculations
3. Schedule 3 - Delivery Protocol: Specific procedures for delivery, inspection, and acceptance of the goods
4. Appendix A - Warranty Terms: Detailed warranty terms and conditions, including claim procedures
5. Appendix B - Insurance Requirements: Specific insurance requirements including coverage types and amounts
Relevant legal definitions
Clauses
Relevant Industries
Automotive
Manufacturing
Heavy Equipment
Industrial Machinery
Construction
Agriculture
Consumer Electronics
Office Equipment
Renewable Energy
Transportation
Relevant Teams
Legal
Sales
Finance
Commercial
Risk Management
Compliance
Operations
Credit Control
Business Development
Procurement
Relevant Roles
Sales Manager
Commercial Director
Legal Counsel
Contract Manager
Finance Manager
Credit Controller
Risk Manager
Compliance Officer
Business Development Manager
Operations Manager
Procurement Manager
Chief Financial Officer
General Counsel
Sales Director
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