By: Vivi Lutfia- Tim Riset Yuris Muda Indonesia

Illustration (doktor Hukum.com)

Definition of Agreement/Contract

Etymologically, the contract comes from the word “contract” which means agreement. The term contract is also often known as “agreement” which means agreement / agreement / agreement.

Some experts basically provide a definition of agreement/contract, namely:

  1. Lawrence M. Friedman mentions if a contract is a set of laws that only regulates certain aspects of the market and regulates certain types of agreements.
  2. Charles L. Knapp and Nathan M. Crystal stated that a contract is an agreement between two or more people, not only giving trust but mutual understanding to do something in the future by one or both of them.
  3. Article 1312 of the Indonesian Civil Code stipulates that “a consent agreement is an act whereby one or more persons bind themselves to one or more other persons.”
    Elements of Agreement/Contract

Article 1313 of the Civil Code states that the contract elements include:

  1. There is an action
  2. The act is carried out by two or more people / parties
  3. The existence of an engagement between two or more people/parties

Elements listed in the Agreement/Contract

  1. There are legal rules, both written and unwritten
  2. There is a legal subject
  3. The existence of an achievement consisting of components in the form of: giving something, doing something and not doing something
  4. There is an agreement (as stated in Article 1320 of the Civil Code).
  5. There are legal consequences, namely the emergence of rights and obligations

The purpose of the Agreement/Contract according to Patrick S. Atiyah

  1. Forcing a promise and protecting the reasonable expectations that arise from it
  2. Prevent enrichment (efforts to enrich oneself) that is carried out unfairly and incorrectly
  3. To prevent certain kinds of harm

Principles of Agreement/Contract Law

  1. Principle of Freedom of Contract
  2. Principle of Consensualism/Agreed
  3. Good Faith Principle
  4. Agreement Binding Both Parties
  5. Personality Principle

Source:

Hukum Kontrak, Teori dan Praktik (Author: Prof Dr. H. Joni Emirzon, S.H., M.Hum dan Dr. Muhamad Sadi Is, S.H.I., MH., 2021)