
Contract

When entering a legally binding agreement, it's crucial for each party to understand all aspects of the contract before it's signed. This includes foreseeing potential risks and considering the implications of every clause in detail. We offer tailored services to meet the needs of both individuals and businesses, from drafting and reviewing to enforcing contracts. In the Indonesian business landscape, where a wide array of agreements—from commercial contracts and loan agreements to non-disclosure agreements and partnerships—are used, a lack of legal foresight can lead to significant disputes and financial loss.
Despite their common use, contracts in Indonesia are often a source of disputes due to a number of key issues. These include:
Validity of the Agreement: Many contracts fail to meet the legal requirements for validity, making them unenforceable.
Ambiguous Clauses: Vague or unclear language regarding obligations, payment terms, or termination clauses can lead to disagreements between parties.
Breach of Contract: Non-performance by a party to an agreement is a frequent issue that requires legal intervention to either enforce the contract or seek damages.
Conflicting Laws: Contracts, especially those involving foreign parties, can face challenges due to conflicts between Indonesian law and foreign laws.
Our expertise is grounded in the fundamental principles of Indonesian contract law, which are primarily enshrined in the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata or KUHPerdata). The Civil Code provides the legal foundation for contract validity and enforcement. Specifically, Article 1320 of the Civil Code lays out four essential conditions for a legally valid agreement:
Consent of the parties.
Capacity to enter into a legal agreement.
A specific subject matter.
A lawful cause.
Furthermore, the Civil Code's provisions on breach of contract (Wanprestasi) and force majeure provide a legal framework for addressing non-performance and unforeseen circumstances.
Our tailored services are designed to proactively address these issues by applying these regulations to every stage of your contract. When drafting an agreement, we ensure that all four conditions of Article 1320 are met, guaranteeing its legal validity. Our meticulous review process involves analyzing every clause to eliminate ambiguity and foresee potential risks, safeguarding your interests before a dispute can arise. In cases of a breach, we provide robust legal counsel to help you navigate the enforcement process, whether through formal litigation or out-of-court settlement, to ensure you receive the compensation or performance you are legally entitled to. By focusing on precision and legal foresight, we transform a simple document into a powerful tool that protects your business and personal interests.
In a world driven by agreements, a contract's true value lies in its security. Farida Law Office combines a deep understanding of the Indonesian Civil Code with practical expertise in contract law to provide you with a powerful advantage. We empower you to enter into any agreement with confidence, knowing that your legal rights are fully protected and your business is built on a solid foundation.
Our service covers, but is not limited to:
Contract drafting & reviewing
Contract disputes
Employment contracts
Business & commercial contracts
Real estate contracts
IT service & procurement contracts
If you have specific contract needs, please contact us for further discussion.
