Navigating Office Contracts: Essential Insights for Indonesian Businesses

Businesses across the globe often don’t fully appreciate what a boilerplate contract is before they’re signing on it. As a tool for startup success, XWORK, a leading provider of shared office space in Jakarta, offers businesses professional tips and advice that make office rentals a simple process. From discussing the office space you intend to use to leasing meeting rooms, there’s plenty to talk about when addressing what a boilerplate contract is.

Defining the Boiler Plate

A seamless transaction is the end goal when a business signs off on a contract. If a business doesn’t have a solid understanding of a boilerplate contract, or what it is, a variety of issues can arise. “Boilerplate” refers to the common, repetitive language a company can’t negotiate while still opting to throw excess legal clauses into a contract. While every boilerplate contract differs, they all serve the same purpose in commercial leases or rental agreements.

Office Spaces

It’s important to address what a boilerplate contract is in office spaces from a commercial perspective. A basic lease will provide you with stability for a short-term or long-term basis ultimately offering you the security you need for an office space. It’s a good idea to know the basics of what a boilerplate contract entails before you take the first step in signing.

Meeting Rooms

The same holds true in meeting rooms. When agreements on meeting space are the topic of discussion, being on the same page regarding the terms of a contract is essential. Having a solid understanding of what a boilerplate contract is keeps you one step ahead in contract negotiations. But what exactly should you look out for when exploring a boilerplate contract?

What to Look Out For

You’ll find that common clauses come up in boilerplate contracts when renting an office space. From a business perspective, you’ll want to be sure you’ve covered all your bases. You’ll want to cover:

• An explicit explanation of when an agreement is binding and when there is a right to audit
• Discuss indemnification and limitation of liability in case something goes wrong
• Outline dispute resolution and state the venue
• Coverage of other provisions, like confidentiality, assignment, warranties, warranties
• Signing or agreeing to the boilerplate as a whole

What Not to Do

A boilerplate contract is an easy way for a tenant to agree to terms a lessor has negotiated on their own. Not knowing what a boilerplate contract is could wind up costing a business hundreds of thousands of rupiah. You’ll want to steer clear of the following when you’re entering into a boilerplate contract for an office space or meeting room.

• Signing without proper understanding of a contract as a whole
• Giving employers too much leeway, i.e.-relocation and default
• Failing to express intent regarding a number of provisions
• Agreeing to indemnification before fully assessing your risks
• Only relying on the language of a boilerplate contract

Where to Turn for Assistance

Above all else, seek the advice of solicitors or solicitors who are versed in the law and know what to expect. Not everything is a boilerplate contract, but knowing what you’re getting yourself into is half the battle.

When it comes to office spaces or meeting rooms, having the IITF on your side is the best way to get the most out of your arrangement. Understanding your rights and obligations as a tenant ensures your business is on solid ground.

For more information on contracts, you can visit Wikipedia’s page on contracts.