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Introduction To Business Law Yoserwan, S.H. Mh. LLM Contract Law

This document provides an introduction to contract law in Indonesia. It discusses key definitions and principles of contract law, including the definition of a contract, essential elements of a valid contract, types of contracts, and ways that a contract can terminate or be cancelled. The three main points are: 1. A contract is a written agreement between two or more parties that creates rights and obligations for the parties to do or not do something. Essential elements include an agreement between the parties, lawful objectives, and the capabilities of the parties. 2. Contract law is based on principles like freedom of contract and pacta sunt servanda (agreements must be kept). There are various types of contracts like sale, lease, work

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63 views5 pages

Introduction To Business Law Yoserwan, S.H. Mh. LLM Contract Law

This document provides an introduction to contract law in Indonesia. It discusses key definitions and principles of contract law, including the definition of a contract, essential elements of a valid contract, types of contracts, and ways that a contract can terminate or be cancelled. The three main points are: 1. A contract is a written agreement between two or more parties that creates rights and obligations for the parties to do or not do something. Essential elements include an agreement between the parties, lawful objectives, and the capabilities of the parties. 2. Contract law is based on principles like freedom of contract and pacta sunt servanda (agreements must be kept). There are various types of contracts like sale, lease, work

Uploaded by

Naurah Atika Dina
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTRODUCTION TO BUSINESS LAW

YOSERWAN, S.H. MH. LLM


CONTRACT LAW

BY :
HANIFA SHABILA PUTRI Z.
M. KEMAL ALMAGRIBI
NAURAH ATIKA DINA
YOLANDA WIRAWAN

ACCOUNTING DEPARTMENT
ANDALAS UNIVERSITY
1. CONTRACT LAW

This law focuses on the obligation to carry out its own obligations (self-imposed
obligation).
Contracts are made for the protection of private interests not yet regulated by law.
Definition of contract :
- a written agreement between two or more persons / parties creating rights and
obligations to do or not to do something (General Terms)
- Contract: An agreement between two or more persons which creates an
obligation to do or not to do a peculiar thing"
- Agreement: It is an act by which one or more persons commit themselves to one
or more persons (1313 BW)

2. SOURCE OF CONTRACT LAW


-Legislation
-Inter-party agreement
-Jurisprudence, national convection
-Habit and propriety

3. LEGAL TERMS AGREEMENT


A) subjective requirement
Deal
--> agreement: It is the meeting of two intentions embodied in the promise to do
or not to do something. Conformity between offer and Acceptance
Marked with: handshake; payment; signature ; and other matters deemed
appropriate by law and custom Unlawful if: for coercion; the existence of fraud /
oversight; misuse of the situation

Capability
-->Is a party capable of legal or dominion over goods and services that are
contracted or authorized to represent parties. For example: Owner of goods or
authorized; Director as company representative
Incompetent: underage child (<21th / unmarried); a bankrupt; under the ability;
(women in the case of prohibited legislation (UUP 1/1974 art 31 paragraph 2)

B) objective requirement
a certain thing
--> It is the object of the agreement that will lead to achievements for both
existing and existing parties. Ex: goods or services: houses, vehicles,
transportation; delivery; chartering; services etc.

The Lawful
--> The substance of the treaty is a legal cause according to the law; does not
violate morality and public order. Ex: sell, buy, borrow etc.
can not promise illegal sugar trading; drugs; sell land disputes dispute; porn
advertising; staging in front of mosque etc.

4. VARIOUS KINDS OF AGREEMENT


Buy and sell
Exchange
Lease
Doing work
Transportation
Guild
Suppression
Deposit counter
Borrow borrow
Fortunately
Debt Insurance
Peace
Etc

5. THE PRINCIPLES OF AGREEMENT


1. THE PROBLEM OF FREEDOM OF FREEDOM:
the parties have the freedom to decide the agreement
2. PRINCIPLES OF CONSENSUALISM:
The agreement was born since the agreement (consensus)
3. PRINCIPLE OF PERSONALITY:
someone who will do and / or make a contract only for the benefit of the
individual only. Article 1315 and Article 1340 of the Criminal Code
4. PRINCIPLES OF GOOD IKTIKAD
The agreement must be made on the basis of decency and propriety and not
misuse the situation
5. PRINCIPLES OF PUCTA SUNT SERVANDA
All agreements made legally constitute laws for those who create them

6. NATIONAL SOCIETY OF LAW


In addition to the five principles outlined above, in the Workshop on Legal
Engagements organized by the National Legal Development Board of the
Ministry of Justice of the Republic of Indonesia on 17-19 December 1985 has
successfully formulated eight principles of national law. The eight principles are
as follows:
- Trust Principle
The principle of trust implies that every person who will enter into an
agreement will fulfill every feat held among them behind the day.
- Equality Principle
The principle of equality of law contains the intention that the subject of law
which entered into the agreement has equal status, rights and obligations in
law. They should not be distinguished from each other, although the subject
of law is different in color, religion, and race.
- Equilibrium Principle
The principle of equilibrium is the principle that requires both parties to
fulfill and implement the agreement. The creditor has the power to demand
achievement and, if necessary, may demand repayment through the debtor's
wealth, but the debtor assumes also the obligation to execute the agreement
in good faith.
- Legal Certainty principle
The Principle of Legal Certainty The Covenant as a legal figure contains
legal certainty. This certainty is revealed from the binding force of the
covenant, that is, as the law for which it is made.
- Moralitas principle
The Principle of Morality One of the factors that motivate the person
concerned to do the act of law is based on morality as the call of his
conscience.

7. INTERNATIONAL CONTRACT PRINCIPLE


Principle of Freedom of Contract
Good Iktikad Principles and Honest Transactions
The principle of habit recognition
Principles of Agreement through bidding and receiving
The principle of prohibition of negotiation with bad intentions
Principle Keeping secrecy
The principle of protection of the weak from the standard conditions
Principle requirements of contract validity
The principle of cancellation due to big differences
The principle of contra proferentem in interpretation
The principle of honoring the contract is in trouble
Principle of Exemption in force majeur

8. SUBJECT OF AGREEMENT
PERSON
LEGAL ENTITIES
PUBLIC BODIES
STATE

9. ELEMENTS OF AGREEMENT
1. Essential elements
It is a matter of the object of the treaty which must be included in the
covenant for the covenant to be valid
Ex: Goods / services, legal status and price
2. Naturalia Elements
Provisions of general law as a condition that is included in the agreement
(does not reduce the validity of the agreement)
For example: How to pay; time and place of delivery; transportation cost,
installation etc.
3. Aksidentalia elements
Provisions that are not required by law but are deemed necessary for the
parties to technical implementation
For example: delivery of receipts; pictures, bank name and account number;
submission of evidence supporting other agreements

10. WANPRESTATIONS
A situation where the debtor due to negligence / deliberate does not meet the
promised achievement.
Various kind:
Not accomplished
Filled only partially
Filled but too late
Doing that is prohibited by the agreement

11. LEGAL LAW PRINCIPLE


Conducting business contracts across national borders, the parties will be faced
with a choice of law.
In determining the choice of law, there are several principles and limits of legal
choice, among others, as follows.
A. Autonomy’s principle
According to this principle, the parties most entitled to determine the law
they wish to select and act as the basis of the transaction, including as the basis
for the settlement of a dispute should arise a dispute of the contract of the
transaction being made.
B. Bonafide principle
According to this principle, a choice of law should be based on good faith
(bonafide), that is solely for the purpose of certainty, fair protection, and a more
certain guarantee for the implementation of the consequences of the transaction
(the contents of the agreement).
C. Real connection principle
Some legal systems require the necessity of a real relationship between the
selected law and the legal event to be subjugated / based on the law chosen
D. Legal law principle
The parties who are given the freedom to make the choice of law, should not
use that freedom for the purpose of arbitrariness for their own benefit.
E. Common public principle
A choice of law should not be contrary to public order, namely that the law
elected by the parties should not be contradictory to the basic joints of law and
society, the law of judges who will adjudicate the dispute that public order is the
first limitation of one's will in make a choice of law.

12. TERMINATION OF AGREEMENT


Achievement has been fulfilled
Over time has been determined
Agreement of the parties
Decided by the court

13. CANCELLATION OF AGREEMENT


-Agreement of the parties
Does not meet the validity of the agreement (objective terms)
-Default
-Not workable
-Violate the provisions of the law on order and decency
-It is inappropriate and inappropriate
-The agreement may be canceled if it does not meet the validity of the agreement
(Article 1321 Civil Code)
-Null and Void: The agreement is deemed to have been nullified from the start, if
the objective conditions are not met. This agreement is considered null and void
and there has never been a commitment

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