Introduction

Definition

Sometimes the contracting parties find a difference opinion on a part of contract, such as the interpretation of an ambiguous clause or a deviation on the implementation of contract. There is no dispute on this stage, but the parties seek to an expert and independent third party to give them an opinion on such differences to waive any other interpretations.

According to the said mentioned above, BAPMI's Binding Opinion is an opinion made by BAPMI upon the partier's request to clarify and interpret an ambiguous clause of the contract, so that there is no more difference opinion among the parties that potentially bring them to deeper conflict. This opinion of BAPMI is final and binding for the parties. Any actions against to the Binding Opinion deemed as a breach of contract.

The Management of BAPMI gives the Binding Opinion. It is different to Mediation and Arbitration process that conducted by the appointed Mediator/Arbitrator of BAPMI. In BAPMI's Binding Opinion process, the parties do not have to appoint someone as an independent third party; the Management of BAPMI will be automatically acting in the said position.

The reasons to choose the BAPMI's Binding Opinion
There are some reasons why the parties refer to BAPMI's Binding Opinion to settle their differences:

1. the parties do not have any expectation that the differences are going to be more serious conflict;
2. the parties want to preserve their contract;
3. the parties need to find a truly interpretation on an ambiguous clause, and such interpretation shall be final and binding;
4. the parties need a guarantee that any person gives the opinion having hands-on experience and proficient in the capital market field;
5. the parties want to settle their differences by an easier, faster and more efficient mechanism;
6. the parties want to settle their differences by a private forum.

The Type of Matters
The difference opinion eligible for resolution by BAPMI has to meet 4 requirements:

1. only differences between parties that relate to activities in the field of capital market;
2. there is an agreement between the parties that differences will be settled through BAPMI's Binding Opinion;
3. there is a written request by the parties to BAPMI;
4. such difference is not a criminal or administrative case, such as market manipulation, insider trading, or revocation of business license.