As social creatures, we cannot live alone and need the help of others to fulfill our needs. This also applies when we are doing business activities or doing business. The step taken by business actors to meet their needs and develop their business is to enter into a cooperative relationship. Every cooperative relationship requires a contract or agreement to ensure that what has been agreed upon can run smoothly. The following will explain some of the things that make a cooperation contract essential to have. Let’s take a look below.
Serves as law or statute for the parties
In accordance with Article 1338 of the Criminal Code, contracts made apply as governing law for the parties who make them. The contract contains what must, may, and may not be done. Then, cooperation consisting of two parties is also always followed by the rights and obligations of each. This needs to be emphasized in the contract so that each party knows and is aware of its obligations and gets the rights in accordance with what has been promised.
Become a reference in performing obligations
The existence of a contract helps us to monitor and check whether the other party has done what was promised or not, or has actually violated the contract. If the other party has not done what was promised, then we can give a warning to the party to fulfill the terms of the contract.
Prevent problems from arising in the future
The contract must also regulate sanctions if one party does not fulfill its obligations. The inclusion of these sanctions aims to discourage the parties from violating the contract. This is important to anticipate and minimize all possibilities that can harm one of the parties to the contract.
Determine how to solve the problem
The contract contains how to resolve problems that arise, for example if the parties choose to resolve the problem by deliberation but are unsuccessful, then the parties can resolve the problem through the Court or Arbitration.
Evidence in case of dispute
Business doesn’t always run smoothly. There may be disputes between two parties. When this happens, the contract can become written evidence to sue the other party if he violates and does not do what he has promised. This is contained in the provisions of Article 164 Herziene Inlandsch Reglement (HIR). In order for the benefits mentioned above to be felt by business actors, cooperation contracts must be made in such a way. The preparation of cooperation contracts usually goes through 3 stages. The first stage is the pre-contract stage where the parties negotiate, make a Memorandum of Understanding (MoU), and conduct a feasibility study. The MoU here must be made in writing and signed by the parties. The function of the MoU is to serve as the foundation of the contract to be made. The second phase, the contractual phase, is where the parties start drafting the contract until the signing of the contract. This phase usually begins with writing the first script or initial draft , improving the script, writing the final script, and signing the contract. It should be underlined that in the making of the contract there should be no disadvantages and advantages. Both parties must be equal. If there is a mismatch, it is better to convey it at the beginning so that there are no problems in the future. The third stage is the post-contract stage, which contains implementation, interpretation, and dispute resolution.
KH Contact
Thus, the above description makes it urgent for business actors to have a cooperation contract in black and white. Do not just capitalize on trust and then the cooperation relationship is carried out with a verbal agreement. Friend KH planning to do cooperation near this? But don’t understand making contracts? Don’t worry, Kontrak Hukum is ready to accommodate the preparation of the contract. Visit and contact:
