Legal Literacy - Before discussing unilateral termination of contract, we need to understand what a contract is.
A contract or agreement is an agreement between two or more people regarding a specific matter agreed upon by them. Contracts can be oral or written, and can be made for various purposes, such as buying and selling, leasing, cooperation, and so on.
According to Indonesian civil law , a contract must meet four conditions in order to be considered valid, namely:
- Agreement of the parties. Both parties must agree to make a contract.
- Capacity of the parties. Both parties must have the capacity to make a contract.
- A specific matter that can be clearly determined. The contract must regulate a specific matter that is clear and identifiable.
- A cause/causa that is permitted by law. The cause/causa of the contract must be permitted by law.
Regarding the unilateral termination of contracts, there is Jurisprudence Number 4/Pdt/2018 which has become a new fulcrum for judges in deciding cases of unilateral termination of contracts. Previous decisions stated that the action was unlawful because it was contrary to the provisions of Article 1338 paragraph (1) of the Civil Code (hereinafter referred to as “KUHPerdata”). So how is this norm applied?
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