Professional Documents
Culture Documents
Definition of Contract
Definition of Contract
Definition of Contract
MID-TERM PROJECT
MGT-HRM 2016
Annah Dhiatul Ilmia (014201600068)
Students of
Management Study Program
Faculty of Business
President University
20181
Table of Content
1. Introduction ........................................................................................................................... 2
3. Conclusion ............................................................................................................................ 15
1
1. Introduction
1.1 Business is a means for entrepreneurs as a place to create by aiming to make it
easier for people to live their lives. Whether it's in the form of services or
products. In other words, entrepreneurs are helpers of the country's economy, so
that the domestic economic system remains balanced. In fact, many entrepreneurs
have come out of the above vision which ultimately, they are more on the capital
system, where entrepreneurs get the maximum income with relatively minimal
capital. It is clear that most entrepreneurs have been based on this. The system
used is a contract. Contracts are a type of legitimate engagement to work with
either contracting someone, services or goods. With a system contract, one
company or individual will be facilitated on a business trip.
1.2 Problem Identification
a. What are the requirements to make a legitimate contract according Indonesian
Civil Law? What are the legal consequences if each of the legal requirement
of a contract is unfulfilled?
b. What kind of compensations which can be claimed to the party who breach
his/her obligation in the agreement?
1.3 Objective
a. To know the requirements to make a legitimate contract according to Indonesian
Civil Law and What are the legal consequencies if each of the legal requirement of
the contract is unfulfilled
b. To know the type of compensation which can be claimed to the party who breach
his/her obligation in the agreement.
1
Salim H.S, Perkembangan Hukum Kontrak Innominaat Di Indonesia, (Jakarta: Sinar Grafika, 2003), 15.
2
consequences and if violated its fulfillment can be prosecuted in court. A contract
is an agreement that can be carried out or maintained before a court.2
In the contract there is a contract law which is part of civil law, this law
focuses on the obligation to carry out its own obligations. Referred to as civil law
because the violation of the obligations specified in the pure contract becomes a
matter of the parties to the contract.4
From the meaning of the contract, it can be concluded that there are several
elements contained in the contract, namely:
2
Ridwan Khairandy, Hukum Kontrak Indonesia Dalam Perspektif Perbandingan, (Yogyakarta: FH UII Press,
2013), 57
3
Bayu Seto Hardjowahono, “Naskah Akademik Rancangan Undang-undang Hukum Kontrak,” Badan Pembinaan
Hukum Nasional Kementerian Hukum Dan HAM RI, 2013.
4
Muhammad Muhtarom, “Asas-asas Hukum Perjanjian: Suatu Landasan Dalam Pembentukan Kontrak,” Jurnal
Suhuf, Vol.26, No.1, 2014, 50.
5
Agri Chairunisa Isradjuningtias, “Force Majeure (Overmatch) Dalam Hukum Kontrak (Perjanjian) Indonesia,”
137.
3
1. There are parties
2. There is an agreement forms a contract
3. The agreement is intended to cause legal consequences
4. There are certain objects
Contract based on Article 1338 of the Civil Code, the contract as a law that applies
to his party must be beneficial to his side. The contract is said to provide benefits if based
on the contract the parties are able to make predictions about the possibilities of what is
happening that has to do with the contract being prepared, the parties are able to anticipate
the possibilities that will occur, and provide legal protection.6
Sudikno Mertokusumo classified the contract from its legal source into 5 types, namely,
b. Agreements that originate from material, namely those related to the transfer of legal
objects, for example the transfer of property rights.
6
Natasya Yunita Sugiastuti, “Esensi Kontrak Sebagai Hukum Vs Budaya Masyarakat Indonesia Yang Non Law
Minded Dan Berbasis Oral Tradition,” Jurnal Hukum PRIORIS, Vol. 5, No.1, 2015, 32.
4
d. The agreement, which comes from the procedural law, is called bewijsovereenkomst.
Free agreement is an agreement that according to the law only gives profit to
one party for example gifts and loans.
Agreements based on their nature are divided into two namely the material
agreement and the obligator agreement. The material agreement is an agreement that is
caused by material rights. The obligator agreement is an agreement that raises the
obligations of the parties.
5
2.4. Contract in Civil Law Legal System
The German Roman legal system is a system used in Indonesia. This system is
better known as civil law. This legal system cannot be separated from Roman law that
emerged in the 13th century and after that experienced various evolution in accordance
with the demands and needs of an ever-changing society.7
a. Constitution
The Act is the main formal legal source. Which is divided into regulations,
stipulations or provisions, verdicts.
b. Habit
Habits or traditions are the oldest source of law. The source from which is known or
can be explored part of the law outside the law, where we can find or explore the
law.
c. Treaty
d. Jurisprudence
e. Legal discovery
Countries that adhere to the German Roman legal system adhere to a system of
regulating legal resources in principle written.
7
Johannes Gunawan, Hukum Bisnis Dalam Persepsi Manusia Modern,, 58.
6
2.5 Moment of Contract
In various literature mentioned four theories that discuss the momentum of
the occurrence of contracts,8 namely:
1. Statement theory
According to the theory the agreement statement occurs when the party
receiving the offer states that he accepted the offer.
2. Delivery theory
3. Knowledge theory
According to the theory of knowledge that an agreement occurs when the party
offering it, knows of the acceptance. However, the receipt has not yet been
received (not known directly). Criticism of this theory is how he knew the
contents of the receipt if he had not received it.
4. Acceptance theory
According to the acceptance theory that an agreement occurs when the party
offering receives an answer directly from the opposite party.
An agreement between two or more parties gives birth to the rights and obligations
of each party so that if one of the parties fails to fulfill their obligations voluntarily, the
other party can subject him to court. For example, a seller who does not deliver the goods
8
Salim H.S, Perkembangan Hukum Kontrak Innominaat Di Indonesia, 30 – 31.
7
to the buyer even though the buyer has bought and paid in full. If so, the Buyer can demand
that the buyer submit the goods he has purchased. From the legal aspect, the agreement
that has been made and agreed upon by the parties applies as a law and binds the parties
who make it 9. Therefore, every agreement made must be truly implemented. If not, it will
be categorized as an act of default or breaking a promise that entitles the aggrieved party
to claim compensation. Given the importance and strength of the binding power of an
agreement, it is not arbitrary to make an agreement, there are conditions that must be
fulfilled so that the agreement becomes legal and binding on the parties. These conditions
are known as the "legal terms of the agreement" as stipulated in Article 1320 of the
Criminal Code, the validity of an agreement requires 4 conditions:
The first and second conditions are called subjective conditions, because with
regard to the subjects who make the agreement.
While the third and fourth terms are called objective conditions because they relate
to objects in the agreement.
First Requirement "Their agreement is binding" means, the parties who make the
agreement must agree or agree on the main matters or the material agreed upon, where the
agreement must be reached without any coercion, fraud or oversight10. For example,
agreeing to buy and sell land, price, payment method, settlement of the dispute, etc.
Second condition, "the ability to make an engagement" Article 1330 KUHper already
regulates which parties may or may not be competent to make an agreement, Not being
able to make an agreement is:
- An immature person.
9
Article 1338 of the Civil Code / KUHper
10
Article 1321 of the Civil Code
8
- People who are placed under arrest (such as disability, crazy, wasteful, have been
declared bankrupt by the court, etc.)
- A wife. (However, based on the Supreme Court Circular No. 3 of 1963, a wife is now
considered capable of carrying out legal acts)
In other words, those who are capable or allowed by law to make agreements are
adults who are even 21 years old 11, and people who are not under guard. Third condition
"a certain thing" means that in making the agreement, what is agreed (the object of the
engagement) must be clear. At least the type of goods must be available 12. The fourth
requirement "a halal cause" means that it is not permissible to promise something that is
prohibited by law or contrary to the law, the values of politeness or public order13. For
example, a drug sale and purchase agreement, or a sale / purchase agreement for people /
people, etc. Such agreements are prohibited and invalid.
If you have fulfilled the four conditions above, then the agreement is valid. But, the
agreement can be requested to be canceled even if it is null and void if it does not meet the
conditions.
----------------------------------------------------Topic 2--------------------------------------------------------
11
Article 330 of the Civil Code
12
Article 1333 paragraph 1
13
Article 1337 of the Civil Code
9
workers agree to 'tie themselves up' with the company. So, understand and properly
regulate the company, so that workers will not get into trouble later on.
2.8. Self-Resign
But in practice often times workers are intimidated / feared / forced to resign which is one
of the company's tricks. Because in Article 156 it is affirmed that the party that terminates
the agreement is obliged to pay compensation to another party and on the other hand it is a
trick for employers not to have to pay greater severance if the employer has to do a layoff
without the consent of the worker. So that the obligation of the company to workers who
submit the resignation of workers is only entitled to compensation such as the remaining
leave, housing costs and treatment and care, etc. in accordance with Article 156 (4). This
can be anticipated by negotiations so that workers may get more if arranged differently
through an agreement. For housing costs there is a cross-opinion between workers and
employers, regarding whether workers who resign are entitled to 15% of severance pay
and term of service. So, as a worker who wants to resign in a work agreement they should
consider the obligation to pay compensation to the company / employer. Try, when the
intention to resign is unanimous, can be discussed with the company / employer. Mention,
even if necessary, explain the reasons why they resigned. If the reasons for resignation are
related to working conditions and this can be accepted by the company / employer, the
obligation to pay compensation as stipulated in their employment agreement can be
avoided. Good company management certainly will not dispute the compensation clause.
Legally, the claim for compensation in a work agreement can be avoided if the
resignation has an urgent reason in the resignation. This is regulated in Article 1603 letter
p of the Civil Code. Urgent reasons, among others, can be considered as:
10
- The employer / boss/manager turns out to persuade or try to persuade the worker to
carry out acts that are contrary to law or decency, or allow that the persuasion or
trial to persuade such a person is done by one of his subordinates.
- If it turns out the salary of the worker is not paid at the appointed time.
- Work allowances and work facilities that have been agreed upon, have not been
implemented.
- If the employer / boss/manager does not provide the proper work while the worker's
salary is dependent on the results of the work performed.
- If the employee's wages are hung on the results of the work that must be done the
employer / boss/manager does not provide the promised assistance or does not
provide enough.
- It is proven that the employer / boss/manager neglects his obligations as stipulated
in the work agreement.
- If the employer / boss/manager, if the nature of the employment relationship does
not require it, the worker refuses it, instructs the worker to do work in the company
of another businessman.
- If the ongoing work relationship for the worker continues to pose a danger to the
soul, health, decency or good name, while the work is not stated in the employment
agreement or at least not implied in the employment agreement clauses.
- If the worker is due to illness or other reasons because it is not wrong to be unable
to do the promised work.
Employers are allowed to dismiss their workers in the event that workers
violate the provisions stipulated in the employment agreement, company
regulations or collective labor agreements. After the workers were given first,
second and third warning letters respectively. Each warning letter is valid for a
11
maximum of 6 (six) months, unless otherwise stipulated in a work agreement,
company regulation or collective labor agreement. Employers can provide warning
letters to workers for various violations and determine appropriate sanctions
depending on the type of violation. Entrepreneurs are also allowed to issue for
example SP 3 directly, or for certain actions to directly dismiss. This is by noting
that this matter is regulated in a work agreement (PK), company regulation (PP), or
collective labor agreement (PKB), and in all three rules, clearly mentioned types of
violations that can result in layoffs. In addition to employee errors, dismissal may
be done for other reasons. For example, if a company decides to do efficiency,
merger or consolidation, in the event of loss, bankruptcy, or layoffs, it occurs due
to circumstances beyond the control of the employer (force majeure). However, the
Law expressly prohibits employers from laying off on the grounds of:
- the worker is unable to enter work due to illness according to the doctor's
statement for a period not exceeding 12 (twelve) months continuously;
- workers unable to carry out their work because they fulfill obligations to the
state in accordance with the provisions of the prevailing laws and regulations;
- the worker carries out a service that is commanded by his religion;
- married workers;
- female workers pregnant, childbirth, uterus, or breastfeeding her baby;
- workers have blood ties and / or marital ties with other workers in one
company, unless it has been regulated in PK, PP, or PKB;
- workers establish, become members and / or administrators of trade unions,
workers carry out trade union activities outside working hours, or in working
hours on the agreement of employers, or based on provisions stipulated in PK,
PP, or PKB;
- a worker who complains about the employer to the authorities regarding the
conduct of the entrepreneur who commits a crime;
- because of differences in understanding, religion, political flow, ethnicity, skin
color, class, gender, physical condition, or marital status;
12
- workers in permanent disability, sick due to work accidents, or sick due to
work relationships according to a doctor's statement that the period of recovery
cannot be ascertained.
And keep in mind there is good news even though you as a worker make a big
mistake / commit intentional or unintentional criminal acts. The company is
now unable to arbitrarily copy you. Because in Article 158 of Law No. 13/2003
has been revoked by the Constitutional Court, meaning that workers' rights,
such as basic salary, benefits, etc., must be paid by the Company before it is
proven / has a permanent decision from the Court that declares guilt or not a
person / worker. And even if it has been convicted, it is also entitled to the
payment of term of service (UPMK) and rights compensation (UPH). This
departs from the idea of the principle of presumption of innocence upheld by
law.14
14
Article 158 of Law No. 13/2003
13
UPMK Working Period
a. annual leave that has not yet been taken and has not yet fallen;
b. the cost or expense of returning to the worker / laborer and his / her family where
the worker / laborer is accepted to work;
14
- Workers filed layoffs for business violations - 2 times UP, 1 time UPMK, and
UPH Workers received layoffs even though not because of their mistakes -
Depending on the agreement
- Marriage between workers (if arranged by the company) - 1 time UP, 1 time
UPMK, and UPH
- Mass layoffs due to company loss or force majeure - 1 time UP, 1 time UPMK,
and UPH dismissed
- Bulk because the Company is doing efficiency. - 2 times UP, 1 time UPMK,
and UPH
- Consolidation, Merger, change of status and Workers do not want to continue
working relationships - 1 time UP, 1 time UPMK, and UPH
- Consolidation, Merger, change in status and Entrepreneurs do not want to
continue working relationships - 2 times UP, 1 time UPMK, and UPH
- Bankrupt company - 1 time UP, 1 time UPMK, and UPH
- Workers die - 2 times UP, 1 time UPMK, and UPH
- Workers are absent 5 days or more and have been summoned 2 times
appropriately - UPH and Split money
- Workers are prolonged illness or work accidents (after 12 months) - 2 times UP,
2 times UPMK, and UPH
- Workers enter retirement age15
- Workers are detained and unable to do work (after 6 months) - 1 time UPMK
and UPH
- Workers are detained and convicted - 1 time UPMK and UPH
3 Conclusion
About the discussion in contract and all of the requirement, it must be fulfilled as well otherwise,
there is no contract that could be the proof of something dealt. The provisions in Article 1320 and
1338 of the Civil Code contain principles and principles of freedom to make contracts or
agreements. In civil law basically, everyone is given the freedom to make an agreement both in
15
Article 167 of Law 13/2003
15
terms of form and content, as long as it does not violate the provisions of legislation, decency,
propriety in society16.
After the agreement arises and binds the parties, the next thing that concerns are the
implementation of the agreement itself. So far problems often arise, what if one party does not
implement the provisions stated in the agreement. According to the Civil Code, if one party does
not carry out, does not fulfill the obligations as stated in the agreement or has fulfilled its
obligations but not as determined, then the act is categorized as default. In practice to declare
someone has violated an agreement and is considered to be in default, he must be given a warning
letter (subpoena). The summons must state clearly that one party has violated the terms of the
agreement (include articles and paragraphs that have been violated). Also mentioned in the
subpoena about legal remedies that will be taken if the offender still does not comply with the
subpoena filed. There are so many crucial and critical things in law but people do not know a lot
about it, there must be an involvement of every people to aware that law is covering our life. they
have their right and it is supported by law, but most of them do not notice. regarding the discussion
above, it can be seen that there are many problems would be come after when there is no knowledge
about law especially in second topic which is about compensation. The problem is, even though
there are urgent reasons as explained above, it turns out that the reasons for your resignation are
unacceptable and the management still demands that you pay compensation so, my advice, if so
complicated the problem is no agreement then you should the problem was brought / reported to
the local Manpower Office or contacted a lawyer / advocate as an executor representing the
interests to fight for these rights.
16
Article 1337 of the Civil Code
16
1
Salim H.S, Perkembangan Hukum Kontrak Innominaat Di Indonesia, (Jakarta: Sinar Grafika,
2003), 15.
2
Ridwan Khairandy, Hukum Kontrak Indonesia Dalam Perspektif Perbandingan, (Yogyakarta:
FH UII Press, 2013), 57
3
Bayu Seto Hardjowahono, “Naskah Akademik Rancangan Undang-undang Hukum Kontrak,”
Badan Pembinaan Hukum Nasional Kementerian Hukum Dan HAM RI, 2013.
4
Muhammad Muhtarom, “Asas-asas Hukum Perjanjian: Suatu Landasan Dalam Pembentukan
Kontrak,” Jurnal Suhuf, Vol.26, No.1, 2014, 50.
5
Agri Chairunisa Isradjuningtias, “Force Majeure (Overmatch) Dalam Hukum Kontrak
(Perjanjian) Indonesia,” 137.
6
Natasya Yunita Sugiastuti, “Esensi Kontrak Sebagai Hukum Vs Budaya Masyarakat Indonesia
Yang Non Law Minded Dan Berbasis Oral Tradition,” Jurnal Hukum PRIORIS, Vol. 5, No.1,
2015, 32.
7
Johannes Gunawan, Hukum Bisnis Dalam Persepsi Manusia Modern,, 58.
8
Salim H.S, Perkembangan Hukum Kontrak Innominaat Di Indonesia, 30 – 31.
9
Article 1338 of the Civil Code / KUHper
10
Article 1321 of the Civil Code
11
Article 330 of the Civil Code
12
Article 1333 paragraph 1
13
Article 1337 of the Civil Code
14
Article 158 of Law No. 13/2003
15
Article 167 of Law 13/2003
17