Legal Literacy - Debts and receivables are part of civil law and are an unavoidable part of modern life today. Especially in the business world, transactions involving debts and receivables are common. However, even though this often happens, many civil law cases of debts and receivables are still a problem in Indonesian courts. Therefore, a good understanding of civil law on debts and receivables is very important in business and financial relationships.

Debts and receivables are two different terms, although both are related to money borrowed or lent. Debt is money borrowed by a borrower from a creditor, while receivables are money or assets lent by a lender to a borrower. In both cases, a written agreement between the two parties must be made in advance.

In Indonesian civil law, debts and receivables are regulated in the Civil Code (KUHPerdata). There are several aspects that must be considered in civil law debts and receivables, including:

Requirements for the Validity of a Debt Receivable in Civil Law

As is commonly understood, there are two categories of agreements: oral and written. This oral agreement is an agreement made by the parties in oral form (the parties' agreement orally). According to law, an oral agreement is valid and enforceable as long as it meets the validity requirements of the agreement, namely that the parties agree and the agreement must be carried out in good faith. Therefore, in order for an agreement to be implemented, the agreement must meet the conditions outlined in the Civil Code, namely:

Article 1320

Four conditions must be met before a contract can be considered valid:
1. The approval of the parties who bind themselves;
2. the capacity to make a contract;
3. a specific subject matter;
4. a lawful cause.