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Mutual Consent Contract Template for Indonesia

A comprehensive legal document governed by Indonesian law that formalizes mutual agreement between two or more parties. This contract type is structured in accordance with the Indonesian Civil Code (KUHPer), particularly Book III on Obligations, and must comply with Law No. 24 of 2009 regarding language requirements. The document establishes clear terms and conditions for mutual consent, including rights, obligations, and responsibilities of all parties involved, while ensuring compliance with Indonesian contract formation principles and regulatory requirements.

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What is a Mutual Consent Contract?

The Mutual Consent Contract serves as a fundamental legal instrument in Indonesian business and civil transactions, providing a structured framework for documenting agreements between willing parties. This document type is essential when parties need to formally document their mutual understanding and consent to specific terms and conditions under Indonesian law. It is particularly relevant for business transactions, partnerships, and various commercial arrangements where clear documentation of mutual agreement is crucial. The contract must comply with the Indonesian Civil Code (KUHPer), specifically Article 1320 regarding valid contract formation, and Law No. 24 of 2009 requiring agreements involving Indonesian parties to be drafted in Bahasa Indonesia. The document is commonly used across various sectors and can be adapted to different business contexts while maintaining its core purpose of documenting mutual consent.

What sections should be included in a Mutual Consent Contract?

1. Parties: Identification and details of all parties entering into the mutual consent agreement

2. Background: Context and circumstances leading to the mutual consent agreement

3. Definitions: Clear definitions of key terms used throughout the agreement

4. Purpose and Scope: Clear statement of the agreement's purpose and the scope of mutual consent

5. Rights and Obligations: Detailed description of each party's rights and obligations under the agreement

6. Term and Termination: Duration of the agreement and conditions for termination

7. Representations and Warranties: Statements of fact and assurances made by each party

8. Confidentiality: Obligations regarding confidential information shared between parties

9. Governing Law: Specification of Indonesian law as governing law and relevant jurisdictional matters

10. Dispute Resolution: Process for resolving any disputes arising from the agreement

11. Notices: Method and addresses for formal communications between parties

12. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments

13. Execution: Signature blocks and execution requirements, including dual-language execution if required

What sections are optional to include in a Mutual Consent Contract?

1. Force Majeure: Include when parties wish to address circumstances beyond their control that may affect performance

2. Assignment: Include when parties need to address the ability to transfer rights or obligations

3. Intellectual Property: Include when the agreement involves IP rights or creation

4. Insurance: Include when specific insurance requirements need to be maintained

5. Compliance with Laws: Include when specific regulatory compliance needs to be addressed

6. Change Control: Include when the agreement may require formal processes for changes

7. Data Protection: Include when personal or sensitive data processing is involved

8. Non-Competition: Include when parties need to address competitive restrictions

What schedules should be included in a Mutual Consent Contract?

1. Schedule A - Detailed Scope: Detailed description of the subject matter of mutual consent

2. Schedule B - Timeline: Detailed timeline or milestone schedule if applicable

3. Schedule C - Contact Details: Comprehensive contact information for all parties and key personnel

4. Schedule D - Special Terms: Any special terms or conditions specific to the mutual consent

5. Appendix 1 - Required Documents: List and copies of any required supporting documents

6. Appendix 2 - Compliance Requirements: Detailed compliance requirements and procedures if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Cost

Free to use

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