A Terms of Sale Agreement is a fundamental commercial document used to establish clear guidelines and legally binding conditions for the sale of goods or services in Indonesia. This document is essential for businesses operating in the Indonesian market, whether in traditional retail, manufacturing, or e-commerce sectors. It must comply with multiple Indonesian regulations, including the Civil Code, Consumer Protection Law (Law No. 8 of 1999), and Trade Law (Law No. 7 of 2014). The agreement typically covers crucial aspects such as product specifications, pricing structures, payment terms, delivery conditions, warranty provisions, and dispute resolution procedures. For online transactions, it incorporates requirements from Law No. 19 of 2016 on Electronic Information and Transactions. This document serves as a critical tool for risk management and establishing clear commercial relationships in the Indonesian business environment.
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1. Parties: Identification of the seller and buyer, including complete legal names, addresses, and registration numbers where applicable
2. Background: Context of the agreement and general purpose of the trading relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Agreement: Overview of products/services covered by the terms of sale
5. Ordering Process: Procedures for placing and accepting orders
6. Prices and Payment Terms: Pricing structure, payment methods, currency, and payment timelines
7. Delivery Terms: Shipping arrangements, delivery timeframes, and transfer of risk
8. Product Quality and Warranty: Quality standards, warranty terms, and product specifications
9. Returns and Refunds: Policies and procedures for returns, refunds, and replacements
10. Rights and Obligations: Detailed responsibilities of both parties
11. Term and Termination: Duration of agreement and conditions for termination
12. Governing Law and Dispute Resolution: Applicable law and procedures for resolving disputes
13. Force Majeure: Circumstances excusing performance of obligations
14. Notices: How formal communications between parties should be made
15. Execution: Signature blocks and execution requirements
1. E-commerce Provisions: Required when sales are conducted online, addressing electronic transactions and digital signatures
2. International Trade Terms: Include when transactions involve cross-border sales, incorporating Incoterms and export/import requirements
3. Intellectual Property: Needed when products involve trademarks, patents, or other IP rights
4. Confidentiality: Include when sensitive information will be exchanged
5. Insurance Requirements: Required for high-value goods or when specific insurance coverage is necessary
6. Data Protection: Include when personal data processing is involved in the sales process
7. Agency and Distribution: Required when the sale agreement involves third-party agents or distributors
1. Product Schedule: Detailed list of products, specifications, and prices
2. Service Level Requirements: Specific performance metrics and service standards
3. Payment Terms Schedule: Detailed payment structures, credit terms, and financial conditions
4. Quality Standards: Specific quality requirements and testing procedures
5. Return Procedures: Detailed procedures for product returns and claims
6. Shipping Terms: Detailed delivery requirements and logistics specifications
7. Warranty Terms: Detailed warranty conditions and claim procedures
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
E-commerce
Consumer Goods
Technology
Automotive
Food and Beverage
Electronics
Textiles
Construction Materials
Healthcare Products
Agricultural Products
Industrial Equipment
Wholesale Trade
Relevant Teams
Legal
Commercial
Sales
Procurement
Business Development
Compliance
Operations
E-commerce
Risk Management
Supply Chain
Customer Service
Finance
Trade Compliance
Relevant Roles
Legal Counsel
Commercial Director
Sales Manager
Procurement Manager
Business Development Manager
Contract Administrator
Compliance Officer
Operations Manager
E-commerce Manager
Risk Manager
General Manager
Chief Commercial Officer
Chief Legal Officer
Trade Compliance Specialist
Supply Chain Manager
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