Document background
The Contract Assignment Agreement is a crucial legal instrument used in Indonesian business transactions when one party wishes to transfer its contractual rights and obligations to another party. This document type is commonly utilized during corporate restructuring, business acquisitions, debt assignments, or project transfers. The agreement must comply with Indonesian Civil Code requirements, particularly Articles 1400-1417 governing assignments (cessie). It contains essential provisions for the transfer, including detailed identification of the assigned contract, consideration terms, warranties, and any required consents. The document becomes particularly important in scenarios involving foreign investment, requiring compliance with Indonesian Investment Law and potentially requiring specific governmental approvals. This agreement type requires careful consideration of stamp duty requirements under Law No. 13 of 1985 and may need notarization depending on the nature and value of the assigned contract.
