COURT DECISIONS AS A LIVING MIRROR OF LAW RELATED TO THE FORMATION OF CONTRACT
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Abstract
Contracts have been provided for under Indonesian law, namely in Book III of the Indonesia Civil Code (ICC) under the heading “Concerning Obligations”. The issue that arises is that such norm is yet to become a living norm. In order for it to become a living norm, it needs to be assessed in the resolution of actual cases. The purpose of this research is to provide an insight into the application of the provisions of Article 1320 of the ICC concerning the validity of agreement, namely consensus as a basis for the formation of contract, the capacity of the parties, particular subject matter and lawful cause in concrete cases. The expected benefit of this research is to provide an opportunity to law students to study judicial decisions as a reflection of the living law; at the same time, it is also significant for law practitioners to clarify legal issues in view of existing relevant legislation which contains ambiguity or lacks comprehensive provisions regarding the subject matter. This research is normative legal research, the norm under study is the norm concerning the validity of contract provided for under Article 1320 of the ICC. For an understanding of said norm, literature research has been undertaken with the objective of obtaining primary and secondary legal materials. The resources to be discussed accessible both in print (books) and electronically using internet search engines. Research has been conducted through qualitative data processing and inductive reasoning method. As a result of the research three landmark decisions have been identified which reflect the respective judges’ endeavour to understand, interpret, and engage in dialogue with legal facts. All the foregoing ultimately leads to the understanding of Article 1320 of the ICC as living law.
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