The Release of Liability document serves as a crucial risk management tool in Indonesian business and personal transactions. It is commonly used when activities or services involve inherent risks, allowing parties to clearly document their understanding and acceptance of these risks. The document must be drafted in compliance with Indonesian Civil Code (KUHPerdata) requirements, particularly Articles 1320 and 1337 regarding valid agreements and lawful causes. Typically used before participating in potentially risky activities, providing services, or allowing use of facilities, this Release of Liability helps protect businesses and individuals from future claims while ensuring transparency about risks involved. However, it's important to note that under Indonesian law, not all types of liability can be waived, particularly those involving gross negligence or intentional wrongdoing.
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1. Parties: Identifies and provides full details of the Releasor (person giving the release) and Releasee (person being released from liability)
2. Background: Explains the context and circumstances leading to the release, including relevant activities or relationships between the parties
3. Definitions: Defines key terms used in the document, including 'Claims', 'Liability', and any activity-specific terminology
4. Release and Waiver: Core section detailing the specific claims, rights, and liabilities being released or waived
5. Scope of Release: Clearly defines what is and isn't covered by the release, including temporal and geographical limitations
6. Representations and Warranties: Statements by the Releasor confirming their understanding, capacity, and authority to give the release
7. Governing Law: Specifies Indonesian law as governing law and relevant jurisdiction
8. Execution: Signature blocks and execution requirements compliant with Indonesian law
1. Consideration: Required when the release is given in exchange for payment or other consideration
2. Indemnification: Optional clause where Releasor agrees to indemnify Releasee against future claims
3. Future Claims: Additional provisions specifically addressing potential future claims, used when relevant to the activity
4. Insurance: Details about insurance coverage and requirements, needed for high-risk activities
5. Severability: Clause ensuring remainder of agreement remains valid if any part is found unenforceable
6. Witness Requirements: Additional execution requirements when dealing with high-value or high-risk releases
7. Translation Declaration: Required when the release is provided in multiple languages
1. Schedule A - Description of Activities: Detailed description of activities or circumstances covered by the release
2. Schedule B - Specific Risks: Enumeration of specific risks being acknowledged and waived
3. Schedule C - Consideration Details: If applicable, details of any payment or consideration being provided
4. Appendix 1 - Safety Guidelines: When relevant, safety protocols or guidelines related to the activities
5. Appendix 2 - Insurance Certificates: Copies of relevant insurance certificates when required
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