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Framework Purchase Agreement

Framework Purchase Agreement Template for Indonesia

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Key Requirements PROMPT example:

Framework Purchase Agreement

"I need a Framework Purchase Agreement governed by Indonesian law for a technology manufacturing company purchasing electronic components from multiple local suppliers, with specific provisions for quality control and minimum order quantities, to be implemented by March 2025."

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Document background
The Framework Purchase Agreement is a strategic commercial document used in Indonesian business relationships to establish a master agreement governing multiple future purchases. It is particularly valuable when parties anticipate an ongoing trading relationship with regular transactions, as it eliminates the need to negotiate terms for each individual purchase. This document type must comply with Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata) and Law No. 7 of 2014 on Trade, while addressing specific requirements for commercial transactions in Indonesia. The agreement typically covers essential elements such as ordering mechanisms, pricing structures, delivery terms, quality standards, and dispute resolution procedures, while remaining flexible enough to accommodate changing business needs over time. It's commonly used in both domestic Indonesian transactions and international trade relationships involving Indonesian entities.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, relationship between parties, and general intent of the framework arrangement

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

4. Framework Arrangement: Core mechanics of how the framework operates, including process for purchase orders and acceptance

5. Ordering Process: Detailed procedures for placing, accepting, and fulfilling orders under the framework

6. Prices and Payment: Pricing mechanism, payment terms, currency, and invoicing requirements in compliance with Indonesian regulations

7. Delivery and Acceptance: Terms regarding delivery, inspection, acceptance criteria, and rejection procedures

8. Quality and Compliance: Quality standards, warranties, and compliance with Indonesian product regulations

9. Term and Termination: Duration of the framework agreement and grounds for termination

10. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

11. Confidentiality: Protection of confidential information and trade secrets

12. Force Majeure: Events excusing performance and procedures during force majeure events

13. Governing Law and Dispute Resolution: Indonesian law governance and dispute resolution procedures

14. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

Optional Sections

1. Exclusivity: Include when parties agree to exclusive purchasing arrangements, subject to Indonesian competition law

2. Minimum Purchase Commitments: Include when buyer commits to minimum purchase volumes or values

3. Performance Metrics: Include when specific KPIs or service levels are required

4. Insurance: Include when specific insurance requirements are necessary based on product/service risk

5. Intellectual Property: Include when framework involves licensed products or technology transfer

6. Anti-Corruption: Include when framework involves government entities or high-risk sectors

7. Export Control: Include when framework involves international trade or restricted goods

8. Data Protection: Include when framework involves processing of personal or sensitive data

Suggested Schedules

1. Schedule 1 - Products and Specifications: Detailed list of products/services covered under the framework with specifications

2. Schedule 2 - Pricing Schedule: Price list, discount structures, and price adjustment mechanisms

3. Schedule 3 - Service Levels: Detailed service level requirements and measurement criteria

4. Schedule 4 - Order Form Template: Standard form for placing orders under the framework

5. Schedule 5 - Technical Requirements: Detailed technical specifications and compliance requirements

6. Schedule 6 - Key Contacts: List of key personnel and contact details for both parties

7. Appendix A - Compliance Checklist: Checklist of regulatory requirements under Indonesian law

8. Appendix B - Quality Standards: Detailed quality standards and testing procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions






















































Clauses















































Relevant Industries

Manufacturing

Retail

Technology

Construction

Energy

Mining

Healthcare

Automotive

Consumer Goods

Electronics

Telecommunications

Agricultural Products

Industrial Equipment

Chemicals

Pharmaceuticals

Relevant Teams

Legal

Procurement

Supply Chain

Finance

Operations

Compliance

Risk Management

Commercial

Vendor Management

Contract Administration

International Trade

Business Development

Relevant Roles

Procurement Manager

Supply Chain Director

Commercial Director

Legal Counsel

Contract Manager

Purchasing Officer

Chief Financial Officer

Operations Manager

Vendor Manager

Sourcing Specialist

Supply Chain Analyst

Chief Operating Officer

Risk Manager

Compliance Officer

Business Development Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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