denpasar, Hukum Perdata-Civil Law, lawyers in baliSeptember 24, 202016 comments 0 Likes

Terms of validity and the abolition of agreements

Terms of validity of the agreement:

Article 1320 of the Indonesian Civil Code:

For the validity of an agreement, the following conditions are required:

Agree those who bind themselves.
The ability to make an engagement.
The certain thing.
The cause that is lawful.

Meanwhile, regarding the abolition of engagements / agreements:

Due to payment.
The offer of cash payment is followed by escrow.
Debt renewal.
Compensation or calculation of mutual debt.
Debt mixing.
Debt relief.
The items referred to in the agreement has destroyed/gone.
Cancellation of the agreement.
As the result of the validity of cancellation condition.
Passing time.

Cancellation of the agreement is one of the most frequently encountered issues in practice, thus we slightly discuss regarding the cancellation of the agreement as followings:

The agreements which made by people who according to the law are incapable of acting on their own, as well as those agreement which have made by coercion, err, fraud or having the causes contrary to the law, morals or public order, can be canceled or null and void. This cancellation generally results in the situation between the two parties being returned to the condition when the agreement has not been being made yet.

Source:

Prof. Subekti, S.H., Pokok-pokok Hukum Perdata, Publisher: PT. Intermasa, Jakarta, 2003, XXXIV edition.

To find out more about it, please consult with us.

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