LEGAL FORCEMENT CANCELLATION CLAUSE OF THE AGREEMENT MADE ON THE BASIS PRINCIPLE OF FREEDOM OF CONTRACT

Abstract

Agreement cancellation clauses that waive Articles 1266 and 1267 of the Civil Code are generally carried out in business agreements. The basis for considering the inclusion of an agreement cancellation clause refers to the principle of freedom of contract wherein in making the agreement the parties are free to include the things that were agreed upon. Based on these conditions, the legal issues discussed in this study are (1) What is the legal force of the clause on the cancellation of agreements made on the basis of freedom of contract?; and (2) What are the legal consequences of the waiver of Article 1266 and Article 1267 of the Civil Code on debtors? The research method used is normative legal research. The results of this study indicate that (1) The legal force of the cancellation clause of the agreement made on the basis of freedom of contract is binding for the parties if the parties trust each other and agree regarding the binding power of the agreement cancellation clause. The binding force of the cancellation clause of the agreement is effective if the party claiming the cancellation itself is not in default or does not have bad faith. In addition, the other party did not submit an exceptio non adimpleti contractus (defence to a default claim); and (2) The legal consequences of the waiver of Article 1266 and Article 1267 of the Civil Code for a debtor who is negligent in carrying out the agreement resulting in default, the creditor can cancel the agreement and the creditor has the right to claim compensation caused by the debtor.