BORROWING COMMON LAW ESTOPPEL FOR THE SETTLEMENT OF UNWRITTEN AGREEMENT IN INDONESIA
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Abstract
The recognition of the binding force of unwritten agreements is still uncertain in Indonesia, depending on the judgment of the examining judge. Unlike in the common law countries, the parties entering into unwritten agreements as long as they fulfill the validity of the agreement are protected by the prevailing estoppel. This research aims to investigate the existence of estoppel or its values in the Indonesian Civil Code, which can be used as the basis for the settlement of disputes arising from unwritten agreements in the Indonesian courts. The research will draw comparisons between the application of estoppel in countries adhering to the Common Law legal tradition and dispute settlement of unwritten agreements in Indonesia as a country adhering the Civil Law legal tradition. Estoppel is defined as the prohibition of denying or revoking promises having created reliance to other parties; and by the enforcement of estoppel principle, unwritten agreements as long as complying the terms and conditions for legally binding agreement, shall be declared to be legally binding. This legal research, primarily normative and explanatory, utilizes secondary data for micro-comparative analysis, exploring the borrowing of estoppel from Common Law into the Indonesian Civil Code. The conclusion of this research is expected to contribute an input for the prevailing regulation concerning the recognition or binding force of unwritten agreements by virtue of Article 1320 of the Indonesian Civil Code.
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