The Importance of Agreement, Cooperation Agreement and Contract in Business

Corporate Secretary Service Indonesia – The importance of contracts in business with Legal Agreement Service should be known by business people. Why is that? Because if you want to advance your business, business people need to collaborate with other business people. By having business partners, the capital and business burden will be divided so that it will feel lighter.

Well, before starting cooperation with other parties, business people should understand the importance of certain things being included in the cooperation contract in business. Agreements in business cooperation must be made before cooperation begins. This agreement from Legal Agreement Service like PortCorp is useful if in the future there is a difference of understanding between business partners who cooperate. Making cooperation is done by exchanging ideas and discussing between parties who will cooperate, then a decision is made what important things must be included in the agreement.

Benefits of Cooperation Agreement

The importance of a contract in business before cooperation begins is inseparable from the benefits that each party will get in the contract. A business contract or memorandum of understanding must be made with the consideration that all parties involved benefit equally from the collaboration. Do not let one party benefit more than the other. Here are two benefits of a cooperation agreement in business:

1. The importance of a cooperation agreement in business from a juridical point of view is that there is legal certainty for all parties who make an agreement. All parties must follow what is stated in the agreement and if they violate it, they will get legal sanctions. In addition, the existence of a cooperation agreement can be enforced as a law or regulation for each party that makes it.
2. The benefit of cooperation agreement in business from an economic point of view is an increase in the value of resources that were originally low-value joint ventures to be higher after the agreement signed together witnessed by a notary. Agreements made with a notary witnessed by a legal entity will increase the value of joint resources.

Read Also: Employee Placement, a Success Factor for a Company

Four Key Terms of a Business Cooperation Agreement

After knowing the importance of cooperation agreements in business, a business actor must understand what are the main requirements that must be followed in making a business cooperation agreement. Article 1320 of the Civil Code (Kitab Undang-Undang Hukum Perdata / KHUPer) details four conditions that must be met by a business actor before entering into a business cooperation agreement.

Here are the four conditions:

1. Agreement of both parties. A business cooperation agreement must be agreed upon by both parties in it, without any coercion, mistake, or fraud. Both parties must mutually agree to the contents of the agreement and know the nature of the object of the agreement before signing the agreement.
2. Proficiency in making agreements. Agreements may not be made by parties who are declared “legally incapable”, namely people who are minors, are under forgiveness, and all parties who are prohibited from making agreements by law.
3. Concerning a specific matter. The agreement must address a specific object. Article 1332 of KUHPer states that only goods that can be traded can be the object of the agreement.
4. A lawful cause. This means that the agreement is not made to do something that is prohibited by law.

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