Common Contracts

Arbitration Agreement to Non-Signatory Parties in Indonesia

August 28th, 2019

• Filed
  August 28th, 2019

International business transaction, especially in the exchange of goods and services nowadays, a contract is normally concluded to govern the entire relation between the parties. Ideally, the perfect contract probably should be able to give foresights to all possible scenarios and their solutions, regarding the beginning of the business relationship, its performance and finally its termination. In today’s commercial transaction, the parties will draw up an arbitration agreement in their contract to submit all disputes arising from a contract to a neutral body. The presence of non-signatories party in arbitration agreement is apparent on a contract which involves an affiliated companies. This situation arises because it is becoming more acceptable nowadays for a company to establish subsidiary companies in order to make business transaction become more swift and sophisticated. The liability issue normally happened when there are two company that are affiliated to each other while only o