“Agreement template can be a time bomb if there is no clausule which protects the business’ needs and interests.”
The majority of business and start-ups realize the need of legal counsel. From drafting business agreement, licenses, to establishment of business entities. Due to the limited resources and capital, businesses and start-ups have to choose between the cost for business capital or cost of legal counsel.
The business’ tendancy to sacrifice lawyers’ cost to increase business capital and seeking alternatives in addressing legal aspects need such as drafting business agreements. Such alternatives are downloading agreement templates available online. It is expected to fulfil legal documents needs without paying legal service fees.
This action is reasonable, due to the fact that the hourly rate of lawyers in Jakarta ranges from Rp. 500.000,00 (five hundred thousand rupiah) to Rp. 10.000.000,00 (ten million rupiah) per hour. This rates depends on the seniority of the lawyer.
Disadvantages of Agreement Template
The implication of drafting business agreements by using templates is that there is no legal protection between the parties, or there is a legal loophole that can be used as a base to sue the counterpart in the future.
For example, A, an Indonesian businessman, drafts a furniture sale and purchase agreement with B, from England. The parties use template in English for aforesaid agreement.
Perhaps initially, the parties didn’t know that using Indonesian in drafting agreement between Indonesian and foreign parties is an obligation (Article 31 Law No. 24 of 2009 concerning Flag, Language, State Symbol and National Anthem). In the next days, B terminated the contract as B deemed aforesaid agreement violates the Law by not using Indonesian. This condition certainly may harm A, because the cancellation of agreement will affect the business operation.
Another example, A has produced the furniture based on B’s request. Due to the cancellation, the furnitures are not purchased and there is no clause concerning cancellation of purchase due to certain circ*mstances, such as cancellation of agreement before the period. Certainly, this will harm A, because the production costs will not return due to the cancellation of purchase.
Above cases show that agreement templates can be a time bomb for businessmen or start-ups, because it does not specifically designed to protect the interest and need of the businessman. Thus, it is important for businessman or start-ups to consult with lawyers.
Regarding the expensive legal costs, there is a big digital revolution that affects out life. Thus, there is a new pattern in legal service. This new pattern is a online-based platform lawyer service. This pattern and model help attorney to meet the client at an affordable cost, transparant and reliable quality of service.
The starups or SMEs can consult about drafting legal documents through chat service and video call online. Hence, legal services will be adjusted based on the needs. Thus, helping startups does not have to be done by senior lawyers. In other words, the cost of legal services can be reduced so that the price offered will be lower.
BP Lawyers can assist you:
BP Lawyers can assist startups in drafting business agreement based on your interest and protect your business with rational and effective costs. If you would like to consult, kindly contact us via: bpl@smartlegal.idatau +62821-1234-1235.
Author :
Dalmy Nasution/Bimo Prasetio
