Types of Agreements That Must Be in Writing

Although in general agreements are not required to be in written form, there are several types of agreements that, based on statutory regulations, must be made in writing in order to have legal force. Some examples of agreements that require written form include:

  1. Formal agreements

    • Certain agreements, such as land sale and purchase agreements (Article 1879 of the Civil Code), marriage agreements (Article 29 of the Marriage Law), and bank credit agreements, must be made in written form or even in a notarial deed in order to be valid under the law.

  2. Agreements required by law to be made in writing

    • Several special regulations require written form, such as in property sale and purchase transactions which must be stated in a sale and purchase deed (AJB) before a notary or Land Deed Official (PPAT).

  3. Agreements with large transaction values or involving many parties

    • In business practice, written agreements are preferred to ensure legal certainty and minimize potential disputes.

Article 1320 of the Civil Code stipulates the conditions for the validity of an agreement, but does not require the agreement to be made in writing. Thus, oral agreements are still considered valid as long as they meet the requirements of agreement, capacity, a specific object, and a lawful cause.

However, in legal practice, written agreements are still recommended to avoid difficulties in proving if a dispute occurs. In addition, some types of agreements are required by law to be made in writing, especially those concerning land rights, marriage, and large-value transactions. Therefore, a proper understanding of the valid conditions of an agreement is very important for the public to be able to make and execute agreements correctly in accordance with applicable law.