General Contract

All contracts otherwise formally provided by a specific law regulated by Indonesian Civil Code (Burgerlijk Wetboek) which is a codification civil law prevails in Indonesia since 1848 when Netherland Government govern Indonesia.

There are four conditions for a valid contract i.e. there is an agreement between parties who enter into the contract, the parties have legal competency, the object of the agreement must be determinable, and the contract must be based on legal cause. If a contract entered without agreement and/or the parties who enter the agreement has no legal competency thus the contract become avoidable which means the aggrieved party may file a lawsuit for termination of the contract. If the object of the agreement is undefinable and/or the agreement is contrary to a law thus the contract is null and void.

When a party of a contract is in breach, the aggrieved party may choose to terminate the contract or force the breaching party to continue to fulfill its obligation according to the contract if it is still possible.

Drafting of contract is all about to protect as many as possible the parties’ interest to achieve their purpose. Thus, it is very important to understand the nature and as many as possible the technical aspects of the contract.

We have many experiences from both litigation and negotiation to assist client’s interest in drafting various kind of contracts creatively and innovatively.