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Indonesia’s contract law, including in Jakarta, is predominantly based on the 19th-century Dutch Civil Code, known as Wet Boek van Koophandel. It covers all facets of contractual agreements, from offer and acceptance to breach and remedies. This extensive framework sets regulations on the creation, performance, amendment and termination of contracts among parties. Additionally, the contract law here also includes provisions laid by the Indonesian Business Law and the Consumer Protection Law for more specific case scenarios.
Contractual issues can emerge in a myriad of contexts, including real estate transactions, employment contracts, licensing agreements, or product sale and purchase. Disputes often arise due to contract interpretation, performance issues, or breach of contract. Lawyers can help draft, review and negotiate contracts to ensure parties' obligations and rights are clearly defined and protected. They can also provide crucial assistance if a dispute arises, by guiding you through legal proceedings or dispute resolution mechanisms.
In Indonesia, contracts are consensual, meaning they become binding when the offer is accepted. They must be concluded in good faith, and involve lawful subjects and objectives. Fraud, force, or mistake can nullify a contract. Indonesian law also recognizes verbal contracts. However, written contracts are strongly advised, as they provide clear evidence of terms and conditions. The Indonesian Business Law also provides specific provisions regulating business-related contracts, and the Civil Code enforces strict liability in the event of a breach of contract.
Indonesian law recognizes both oral and written contracts. However, a written agreement is strongly recommended to circumvent potential disputes.
The ability to terminate a contract depends on its terms and conditions. A contract can generally be terminated if both parties agree, or if there has been a serious breach.
If a participating party fails to fulfill contractual obligations, this is considered a contract breach. Remedies for a breach may include damage recovery or contract termination.
It is permissible to write contracts in English. However, for interactions with Indonesian Government and public institutions, an Indonesian version is required.
As per the Indonesian Civil Code, a contract claim expires after 30 years unless a shorter term is specified in the contract.
The Ministry of Law and Human Rights and the Indonesian Advocates Association (PERADI) provide useful insights, regulations and guidelines related to contract law. For a broader understanding and resources related to commercial law, the Indonesian Chamber of Commerce and Indonesian Law Society may also be useful.
If you need legal assistance with contracts in Jakarta, it's recommended to consult with a qualified lawyer who specializes in Indonesian contract law. Bring all relevant contract documents and details of any dispute during your initial consultation. To decide on the lawyer, consider their experience, cost, and approach to ensure they meet your requirements. Legal advice can help ensure your needs are met and your rights protected.
