Document background
The Master Sale and Purchase Agreement is a crucial commercial document used when parties anticipate engaging in multiple sale and purchase transactions over an extended period. This agreement, governed by Indonesian law, establishes the fundamental framework for all future transactions, eliminating the need to negotiate terms for each individual purchase. It covers essential elements such as ordering mechanisms, pricing structures, quality requirements, delivery terms, and risk allocation, while ensuring compliance with Indonesian regulations including the Civil Code, Trade Law, and Consumer Protection Law. The document is particularly important in the Indonesian context where business relationships often require clear documentation of terms while accommodating local business practices and regulatory requirements. It serves as a foundation for long-term commercial relationships while providing flexibility for specific transaction details to be agreed through purchase orders or other transaction documents.
