The MOU and Contract is a versatile legal instrument used in Indonesian business practice when parties need to establish both a framework for cooperation and specific binding commitments. This document type is particularly valuable when transitioning from preliminary discussions to concrete obligations, combining the flexibility of an MOU with the enforceability of a contract. It must be drafted in compliance with Indonesian law, particularly the Civil Code (KUHPerdata) and Law No. 24 of 2009, requiring an Indonesian language version. The document typically outlines the parties' intentions, scope of cooperation, specific obligations, and commercial terms, making it suitable for both domestic and international business relationships. Organizations often use this combined MOU and Contract approach when they need to document both their broad cooperation framework and specific contractual commitments in a single, comprehensive agreement.
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1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and company registration details as required under Indonesian law
2. Background: Recitals explaining the context and purpose of the agreement, including the parties' intentions and relationship
3. Definitions: Definitions of key terms used throughout the document, ensuring consistent interpretation
4. Purpose and Scope: Clear statement of the agreement's objectives and the scope of cooperation between parties
5. Rights and Obligations: Detailed description of each party's rights and responsibilities under the agreement
6. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination
7. Confidentiality: Provisions regarding the handling and protection of confidential information
8. Good Faith: Commitment to act in good faith, as required under Indonesian Civil Code
9. Governing Law: Specification of Indonesian law as the governing law and relevant jurisdiction
10. Language: Statement on language versions as per Law No. 24 of 2009, specifying Indonesian as the prevailing version
11. Notices: Procedures for formal communications between parties
12. Execution: Signature blocks and execution formalities complying with Indonesian law requirements
1. Intellectual Property Rights: Include when the cooperation involves IP sharing or creation
2. Force Majeure: Include when specific force majeure provisions beyond standard Indonesian law are needed
3. Dispute Resolution: Include when parties want specific dispute resolution mechanisms beyond standard court proceedings
4. Assignment: Include when transfer of rights needs to be specifically regulated
5. Competition and Non-Solicitation: Include when parties need to address competitive activities
6. Costs and Expenses: Include when there are specific cost-sharing arrangements
7. Insurance: Include when specific insurance requirements need to be maintained
8. Compliance with Laws: Include when specific regulatory compliance needs to be addressed
9. Data Protection: Include when personal data processing is involved
1. Schedule 1 - Scope of Cooperation: Detailed description of cooperative activities or services
2. Schedule 2 - Timeline and Milestones: Specific dates, deadlines, and project milestones
3. Schedule 3 - Commercial Terms: Financial arrangements, payment terms, and commercial details
4. Schedule 4 - Technical Specifications: Technical requirements or specifications if applicable
5. Schedule 5 - Key Personnel: List of key contacts and responsible personnel from each party
6. Appendix A - Required Permits and Licenses: Copies or lists of required regulatory approvals
7. Appendix B - Form of Notices: Template forms for formal notices under the agreement
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