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What is an Use Agreement?
A Use Agreement sets clear rules for how someone can use property, software, or facilities that belong to another party. In Indonesia, these contracts protect both owners and users by spelling out exactly what's allowed, what's not, and who's responsible when things go wrong.
Under Indonesian Civil Code Article 1320, these agreements become legally binding once both parties sign them. They're especially common in commercial property rentals, digital services, and shared workspace arrangements. The document typically covers payment terms, maintenance responsibilities, usage limitations, and what happens if someone breaks the rules.
When should you use an Use Agreement?
A Use Agreement becomes essential when letting others access your property or resources while maintaining control over how they're used. This applies when renting out commercial space, sharing equipment, or providing access to digital platforms in Indonesia鈥攅specially when multiple parties need clear boundaries and responsibilities.
The agreement becomes particularly important for protecting valuable assets, preventing misuse, and complying with Indonesian regulations on property rights and commercial relationships. Use it when dealing with shared facilities, specialized equipment, or any situation where you need to define usage terms, maintenance obligations, and liability limits upfront.
What are the different types of Use Agreement?
- End Use License Agreement: Controls software usage by end users, outlining installation and usage rights
- Non Commercial License Software: Specifically for free software use in non-profit or educational settings
- License To Use Agreement: Broad agreement covering intellectual property usage rights
- Land Use Agreement: Governs terms for land access and usage between parties
- Equipment Use Agreement: Specifies conditions for borrowing or renting equipment
Who should typically use an Use Agreement?
- Property Owners: Create Use Agreements to protect their assets and set clear terms for others using their property or facilities
- Business Tenants: Sign these agreements when renting commercial spaces or equipment for their operations
- Legal Counsel: Draft and review agreements to ensure compliance with Indonesian property and contract laws
- Facility Managers: Implement and enforce the terms daily, handling access control and maintenance issues
- Corporate Legal Teams: Maintain and update agreements for company-wide property and resource management
How do you write an Use Agreement?
- Identify Parties: Gather complete legal names, addresses, and business registration details of all involved parties
- Define Property: Document exact details of the property or resource being used, including location, specifications, and condition
- Usage Terms: List allowed and prohibited uses, access hours, and maintenance responsibilities
- Payment Structure: Outline fees, payment schedules, and any security deposits required under Indonesian law
- Duration Details: Specify start date, end date, and renewal terms
- Digital Solution: Use our platform to generate a legally-sound Use Agreement that includes all required elements
What should be included in an Use Agreement?
- Party Details: Full legal names, addresses, and registration numbers of all involved parties
- Property Description: Clear identification of the asset or resource being used
- Usage Rights: Detailed scope of permitted and prohibited activities under Indonesian Civil Code
- Term and Termination: Duration, renewal options, and conditions for early termination
- Payment Terms: Fee structure, payment schedule, and late payment consequences
- Liability Provisions: Risk allocation and insurance requirements per local regulations
- Dispute Resolution: Clear procedure for handling conflicts under Indonesian law
- Signature Block: Space for authorized signatures, witnesses, and official stamps
What's the difference between an Use Agreement and an End User License Agreement?
A Use Agreement differs significantly from an End User License Agreement in several key ways. While both govern usage rights, their scope and application serve different purposes under Indonesian law.
- Scope of Rights: Use Agreements typically cover physical assets or spaces, while EULAs specifically govern software and digital content usage
- Duration: Use Agreements often have fixed terms with renewal options, whereas EULAs usually remain valid until software obsolescence or termination
- Transfer Rights: Use Agreements may allow subletting or transfer with owner permission; EULAs typically prohibit redistribution or transfer
- Maintenance Obligations: Use Agreements include specific upkeep responsibilities, while EULAs focus on software updates and technical support
- Liability Structure: Use Agreements balance responsibilities between parties, whereas EULAs primarily protect the software developer's interests
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