The Pre Partnership Agreement is a crucial document used in Indonesian business practice when two or more parties wish to explore a potential business collaboration while maintaining legal protections and clarity during the preliminary phase. This document is particularly important in the Indonesian context, where business relationships often require careful cultivation and due diligence before formal commitments. It provides a structured framework for information sharing, resource allocation, and negotiation parameters while ensuring compliance with Indonesian regulations. The agreement typically precedes more formal arrangements such as joint ventures, distribution agreements, or strategic partnerships, and helps parties manage expectations and protect their interests during the exploratory phase.
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1. Parties: Identification and details of all potential partners, including legal names, addresses, and registration numbers
2. Background: Context of the proposed partnership, including business objectives and rationale for collaboration
3. Definitions: Key terms used throughout the agreement, ensuring clear interpretation
4. Purpose and Scope: Outline of the intended partnership's scope and objectives during the preliminary phase
5. Duration: Timeline for the pre-partnership period and conditions for extension
6. Due Diligence: Framework for information sharing and evaluation process
7. Confidentiality: Obligations regarding confidential information shared during the preliminary phase
8. Costs and Expenses: Allocation of costs during the pre-partnership phase
9. Good Faith Negotiations: Commitment to negotiate the final partnership agreement in good faith
10. Termination: Circumstances and process for ending the pre-partnership arrangement
11. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes
12. Entire Agreement: Confirmation that this document represents the complete understanding between parties
1. Exclusivity: Prevents parties from negotiating similar arrangements with others during the pre-partnership period
2. Intellectual Property Rights: Protection and usage of IP during the preliminary phase, particularly relevant for technology or brand-focused partnerships
3. Non-Competition: Restrictions on competitive activities during the preliminary phase
4. Resource Commitment: Specific commitments of resources or personnel during the evaluation period
5. Regulatory Compliance: Specific regulatory requirements relevant to the intended partnership sector
6. Break Fee: Compensation if either party withdraws from negotiations under specific circumstances
7. Public Announcements: Rules for making public statements about the potential partnership
1. Schedule 1: Business Plan Overview: Preliminary business plan or concept for the proposed partnership
2. Schedule 2: Due Diligence Requirements: List of required documents and information for due diligence
3. Schedule 3: Timeline: Detailed timeline for the pre-partnership phase including key milestones
4. Schedule 4: Confidential Information: Categories and specific types of confidential information covered
5. Schedule 5: Authorized Representatives: List of authorized representatives from each party for negotiations
6. Appendix A: Required Regulatory Approvals: List of necessary regulatory approvals for the intended partnership
7. Appendix B: Form of Non-Disclosure Agreement: Detailed NDA terms for third parties involved in the process
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