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Non Binding Offer Letter Template for Indonesia

A Non-Binding Offer Letter under Indonesian law serves as a formal written communication outlining proposed terms and conditions for a potential business arrangement, while explicitly maintaining its non-binding nature. The document complies with Indonesian Civil Code (KUHPerdata) requirements and business communication standards, presenting preliminary terms for negotiation without creating legal obligations. It includes key proposed terms, clear non-binding language, and follows Indonesian business correspondence protocols while maintaining flexibility for further negotiations.

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What is a Non Binding Offer Letter?

The Non-Binding Offer Letter is a crucial preliminary document in Indonesian business negotiations, used to formally present initial terms and conditions while explicitly preserving their non-binding nature. This document type is particularly valuable in the Indonesian business context where relationship-building and preliminary discussions are essential parts of the negotiation process. It serves as a structured way to present business proposals while complying with Indonesian legal requirements, particularly the Indonesian Civil Code (KUHPerdata) provisions regarding pre-contractual communications. The document typically precedes more formal binding agreements and helps establish clear communication channels while protecting both parties' interests during preliminary negotiations. It's commonly used in various scenarios including business partnerships, acquisitions, service agreements, and investment opportunities.

What sections should be included in a Non Binding Offer Letter?

1. Letter Header: Company letterhead, date, and reference number

2. Recipient Details: Full name, title, and address of the recipient

3. Subject Line: Clear indication of the letter's purpose

4. Salutation: Professional greeting to the recipient

5. Opening Paragraph: Introduction and context of the offer

6. Non-Binding Statement: Clear statement that this is a non-binding offer for discussion purposes only

7. Key Terms: Outline of the main terms being proposed

8. Next Steps: Proposed timeline and process for further discussions

9. Closing Statement: Professional closing with invitation for further dialogue

10. Signature Block: Sender's details including name, title, and company

What sections are optional to include in a Non Binding Offer Letter?

1. Background Information: Additional context about the company or opportunity, used when the recipient may not be familiar with the sender's organization

2. Confidentiality Statement: Optional paragraph about confidentiality of the terms, used when sensitive information is included

3. Validity Period: Timeframe for which the proposed terms remain open for discussion, used when timing is critical

4. Contact Details: Additional contact persons and their details, used when multiple stakeholders are involved

5. Language Declaration: Statement about the governing language if the letter is bilingual, used when dealing with international parties

What schedules should be included in a Non Binding Offer Letter?

1. Term Sheet: Detailed breakdown of the proposed terms in a structured format

2. Company Profile: Brief overview of the company's background and credentials

3. Product/Service Specification: Technical or detailed description of the offered products or services

4. Preliminary Timeline: Proposed schedule for negotiation and implementation

Authors

Alex Denne

Advisor @ GenieAI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

GenieAI

Document Type

Letter of Intent

Cost

Free to use

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