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VOL. 10, ISSUE 5 (2024)
Legal consequences of oral lease agreements: A review of supreme court decision number 2368 K/Pdt/2019 in Indonesia
Authors
Nur Sa’adah
Abstract
An agreement, whether written or oral, binds both parties, and a breach
of contract occurs when one party fails to fulfill their obligations to the
other. In Supreme Court Decision Number 2368 K/Pdt/2019, the Court overturned
the decisions of the District Court (Case Number 1/Pdt.G/2018/PN Mpw) and the
High Court (Case Number 50/PDT/2018/PT PTK), both of which had ruled in favor of
the defendant. The lower courts based their decisions on the argument that the
agreement had no legal standing since it was made orally and lacked
documentation. This study aims to analyze the legal consequences of oral lease
agreements and assess the tenant’s liability for any damages caused. This
research adopts normative legal methodology, often referred to as doctrinal or
library-based legal research. Oral lease agreements, like written ones, remain
binding and enforceable, provided they meet the legal requirements for a valid
contract and do not violate the essential elements of an agreement. As per
Article 1338 of the Indonesian Civil Code, such contracts are considered
legally binding, meaning all the consequences outlined in the agreement must be
honored, in accordance with Article 1320.
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Pages:101-104
How to cite this article:
Nur Sa’adah "Legal consequences of oral lease agreements: A review of supreme court decision number 2368 K/Pdt/2019 in Indonesia". International Journal of Law, Vol 10, Issue 5, 2024, Pages 101-104
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