The Agreement Not To Sue is a crucial legal instrument used in Indonesian business and civil contexts when parties wish to permanently resolve potential legal disputes without proceeding to litigation. This document is particularly valuable in situations where parties have identified potential legal claims but prefer to resolve their differences through mutual agreement rather than court proceedings. It must be drafted in compliance with Indonesian Civil Code requirements and typically includes specific details about the disputes being resolved, the scope of claims being waived, and any consideration being exchanged. The agreement is commonly used in commercial disputes, employment matters, corporate restructuring, and settlement of potential claims. Its effectiveness depends on proper execution according to Indonesian law and clear articulation of the parties' intentions and the scope of claims being waived.
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1. Parties: Identifies and defines all parties to the agreement, including their legal status and addresses
2. Background: Describes the context, existing dispute or potential claims, and circumstances leading to this agreement
3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty
4. Subject Matter: Clearly identifies the specific claims, disputes, or potential legal actions covered by the agreement
5. Covenant Not to Sue: The core provision where parties agree not to initiate or pursue legal action regarding the specified matters
6. Scope of Release: Detailed description of what claims, rights, and causes of action are being waived
7. Consideration: Specifies what each party is giving or receiving in exchange for the agreement not to sue
8. Representations and Warranties: Statements by the parties regarding their authority to enter the agreement and understanding of its implications
9. Governing Law: Specifies Indonesian law as governing law and relevant jurisdiction
10. General Provisions: Standard contractual provisions including severability, entire agreement, and amendments
1. Confidentiality: Include when parties wish to keep the existence or terms of the agreement confidential
2. Future Cooperation: Include when parties need to specify ongoing obligations or cooperation requirements
3. Carve-outs: Include when certain types of claims or rights need to be specifically excluded from the agreement
4. Insurance Claims: Include when insurance matters are relevant to the potential claims being waived
5. Third Party Rights: Include when the agreement affects rights of parties not directly signing the agreement
6. Dispute Resolution: Include when parties want to specify a process for resolving disputes about the agreement itself
7. Regulatory Compliance: Include when specific regulatory requirements need to be addressed
1. Schedule A - Description of Disputes: Detailed description of the specific disputes, incidents, or claims covered by the agreement
2. Schedule B - Related Parties: List of affiliated entities, subsidiaries, or individuals covered by the agreement
3. Schedule C - Excluded Claims: Detailed list of any claims or rights specifically excluded from the agreement
4. Appendix 1 - Supporting Documents: Copies of relevant documents referenced in the agreement
5. Appendix 2 - Corporate Authorizations: Evidence of authority to enter into the agreement (board resolutions, powers of attorney, etc.)
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