The Installment Sales Contract is a crucial document used in Indonesian commercial transactions where goods are sold with payment spread over time through regular installments. This contract type is particularly relevant in both B2B and B2C contexts, especially for high-value purchases where immediate full payment is not practical or desired. The document must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), Consumer Protection Law (Law No. 8 of 1999), and relevant OJK regulations. It typically includes detailed payment schedules, title retention clauses, product specifications, delivery terms, and default provisions. This contract type is commonly used across various industries and provides legal protection for both sellers and buyers while ensuring clear documentation of all transaction terms and conditions.
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1. Parties: Identification of seller and buyer with complete legal names and addresses
2. Background: Context of the sale and brief description of the transaction purpose
3. Definitions: Key terms used throughout the agreement including 'Installment Payments', 'Product', 'Delivery Date', etc.
4. Object of Sale: Detailed description of the product(s) being sold, including specifications and quantity
5. Purchase Price and Payment Terms: Total purchase price, down payment, installment amounts, payment schedule, and payment method
6. Delivery and Transfer of Risk: Terms of delivery, shipping arrangements, and point at which risk transfers to buyer
7. Title Retention: Clause stating that title remains with seller until full payment is received
8. Buyer's Obligations: Key responsibilities including making payments, maintaining the product, and insurance requirements
9. Seller's Obligations: Responsibilities including product delivery, warranty, and after-sales service
10. Default and Remedies: Consequences of payment default, repossession rights, and other remedies
11. Termination: Circumstances under which the contract can be terminated and consequences
12. Governing Law: Specification of Indonesian law as governing law
13. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue
1. Insurance: Required when the product needs specific insurance coverage during the installment period
2. Third-Party Guarantor: Used when a guarantor is required to secure the buyer's payment obligations
3. Maintenance and Service: Included for products requiring specific maintenance or ongoing service
4. Assignment: Used when either party needs the right to assign the contract to third parties
5. Force Majeure: Included when specific force majeure provisions are needed beyond standard provisions
6. Export/Import Provisions: Required when the sale involves international trade elements
1. Product Specification Schedule: Detailed technical specifications and descriptions of the products
2. Payment Schedule: Detailed breakdown of installment amounts and due dates
3. Delivery Schedule: Specific delivery timeframes and locations if multiple deliveries are involved
4. Warranty Terms: Detailed warranty terms and conditions
5. Maintenance Requirements: Specific maintenance procedures and schedules if applicable
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