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KUHPer XVI

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INDONESIAN CIVIL CODE


Book Three - Contracts


Page 1 (Article 1-91) - Page 2 (Article 92-182) - Page 3 (Article 183-273) - Page 4 (Article 274-364) - Page 5 (Article 365-455) - Page 6 (Article 456-498) - Page 7 (Article 499-589) - Page 8 (Article 590-680) - Page 9 (Article 681-771) - Page 10 (Article 772-862) - Page 11 (Article 863-953) - Page 12 (Article 954-1044) - Page 13 (Article 1045-1135) - Page 14 (Article 1136-1226) - Page 15 (Article 1227-1232) - Page 16 (Article 1233-1323) - Page 17 (Article 1324-1414) - Page 18 (Article 1415-1505) - Page 19 (Article 1506-1596) - Page 20 (Article 1597-1687) - Page 21 (Article 1688-1788) - Page 22 (Article 1779-1864) - Page 23 (Article 1865-1955) - Page 24 (Article 1956-1993)



Contents

Chapter I - Concerning Contracts In General


SECTION 1 - GENERAL PROVISIONS

Article 1233

All contracts arise from an agreement, or by law.

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Article 1234

Their purpose is to provide something, to do or not to do something.

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SECTION 2 - CONCERNING CONTRACTS TO PROVIDE SOMETHING

Article 1235

Contracts to provide something include the obligation to deliver the goods and to maintain such, until the time of the delivery, as they would be maintained if in the care of a good head of the household. The extent of the latter-mentioned obligation more or less depends on specific agreements, the consequences of which shall be referred to in the relevant titles.

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Article 1236

The debtor is required to compensate the creditor for costs, damages and interest, in the event that he is unable to deliver the goods, or in the event that he has not properly maintained them.

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Article 1237

With regard to an agreement to provide something, effective as of the conclusion of the agreement, this shall become the creditor's liability. Liability of the debtor for failure by him to deliver the goods shall arise from the time of the default.

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Article 1238

The debtor shall be declared to have defaulted, either by an order or other such similar deed, or pursuant to the contract itself, which stipulates that the debtor shall be in default, upon failure to deliver within the stipulated time period.

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SECTION 9 - DIVISIBLE AND INDIVISIBLE CONTRACTS

Article 1296

A contract is divisible or indivisible if the subject is goods the delivery of which, or a deed the implementation of which is susceptible to division, tangible or intangible.

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Article 1297

A contract is indivisible, notwithstanding that the goods or deed that form the subject matter are, by nature, divisible, if the entirety of the contract itself cannot be partly implemented in part.

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Article 1298

A contract shall not be deemed to be indivisible on the basis that it is a several liability contract.

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Article 1299

A contract which is not divisible shall be executed by the debtor and the creditor, as if such contract is indivisible; divisibility shall only apply to their heirs who cannot claim the debt, or who are not obligated to settle such, but only to the extent of the share which they have inherited or for which they are liable as representatives of the creditor or the debtor.

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Article 1300

The provisions set out in the previous article shall be excepted with respect to the heirs of the debtor in the following matters:

(1)   in the event that the debt relates to a mortgage;

(2)   if the debt comprises specific goods;

(3)   with respect to a debt comprising alternative goods, to be selected by the creditor, if one of the goods proves to be indivisible;

(4)   if, according to the agreement, only one of the heirs is obliged to perform the contract;

(5)   if, either due to the nature of the contract, or due to the goods which form the subject matter, or due to the intent set out in the contract, it is apparent that it is the parties' intent that the debt shall not be settled in parts. In the first three instances, the heir who is in possession of the goods owed, or of the goods which serve as security for the debt, shall be prosecuted for the entire debt, or for the encumbered goods, without prejudice to his right to recover from the other heirs. In the fourth instance, only the heir who is liable for the debt may be prosecuted, and in the fifth instance, each heir can also be prosecuted for the entire debt, without prejudice to the right of the latter- mentioned to recover from the other heirs.

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Article 1301

Each individual, who jointly is responsible for an indivisible debt, is liable for the entire debt, even though the contract was not concluded subject to several liability.

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Article 1302

The same shall also apply to the heirs of those individuals, who are bound by a similar contract.

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Article 1303

Each heir of the creditor may demand the implementation of an indivisible contract in its entirety. An individual heir shall not discharge the entire debt, or receive the value thereof, instead of the goods. If only one of the heirs has discharged the debt, or has accepted the value of the goods, the other heirs shall not claim the indivisible goods, unless they shall have regard to the share of the heir who has discharged the debt or has received the value thereof.

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SECTION 10 - CONCERNING CONTRACTS SUBJECT TO PUNISHMENT AND PENALIZATION

Article 1304

A stipulation in respect of punishment is a stipulation which ensures the execution of a contract by imposing an obligation on an individual in the event that the contract is not complied with.

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Article 1305

The nullification of the principal contract shall also render the stipulation regarding punishment void. However, the nullification of the stipulation regarding punishment shall, in no manner, render the principal contract void.

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Article 1306

The creditor, may, instead of invoking the punishment against the debtor who is in breach, demand the fulfillment of the principal contract.

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Article 1307

The stipulation regarding punishment shall be invoked in lieu of compensation of costs, damages and interest, for the creditor's loss resulting from failure to comply with the principal contract. However, he shall not seek the principal debt and the punishment simultaneously, unless the latter- mentioned is imposed in the event of delay of the execution of the contract.

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Article 1308

Whether or not the original contract stipulates a specific time period within which the contract must be executed, the punishment shall not be imposed until the individual who is bound to provide something, or to receive something, or to do something, has failed to do so.

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Article 1309

The punishment may be revised by the judge, in the event that the principal contract has been partly complied with.

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Article 1310

If the original contract, containing a provision for punishment, concerns indivisible assets, the punishment shall be imposed as a result of breach by any one of the heirs of the debtor and the entire debt may be claimed either from the individual who is in breach, or the respective shares can be claimed from each heir, without prejudice to their rights to claim compensation from the individual as a result of whom the punishment has been imposed, regardless of the rights of secured creditors.

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Article 1311

In the event that the original contract containing a provision regarding punishment is divisible, the punishment shall be imposed solely upon the heirs of the debtor who have breached this contract, and to the extent only of his share in the principal contract, and no lawsuit shall be filed against the individuals who have complied with the contract. There shall be an exception to this rule if the provision regarding punishment is included with the intent that performance shall not occur in parts, and if one of the heirs has obstructed the entire performance of the contract; in this event, the punishment of the latter-mentioned may be imposed in its entirety, and with respect to the other heirs only in relation to their shares, without prejudice to their right for compensation.

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Article 1312

If a divisible principal contract, which contains a stipulation of indivisible punishment, has only been complied with partially, the punishment shall, with regard to the heirs of the debtor, be replaced by compensation of costs, damages and interest.

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Chapter II - Commitments Arising From Contracts Or Agreements


SECTION 1 - GENERAL PROVISIONS

Article 1313

An agreement is an act pursuant to which one or more individuals commit themselves to one another.

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Article 1314

An agreement is concluded pro bono, or pursuant to a charge.

The pro bono agreement, is an agreement in which one party grants a benefit to the other party without any benefit in return.

An agreement pursuant to a charge is an agreement in which each party is obligated to provide something, to do or not to do something.

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Article 1315

In general, an individual can commit only himself or agree to something on his own behalf.

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Article 1316

Notwithstanding this, an individual may guarantee the fulfillment of a third party's commitments, without prejudice to the claim for compensation of damages against the individual who has guaranteed the third party or has agreed to secure the third party, if such third party refuses to fulfill the contract.

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Article 1317

An individual may also enter into an agreement on behalf of a third party, if such agreement, which the individual concludes on his own behalf, or gift granted by him to another party, contains a provision in this regard. An individual, who has concluded an agreement, cannot revoke such, if the third party has declared his intent to exercise it.

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Article 1318

An individual shall be presumed to have entered into an agreement on behalf of himself, and on behalf of his heirs and individuals having rights thereto, unless the contrary is expressly stipulated or is apparent from the nature of the agreement.

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Article 1319

All agreements, whether or not known under specific titles, shall be subject to general regulations, which shall be the subject of this and the previous title.

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SECTION 2 - CONCERNING THE CONDITIONS THAT ARE REQUIRED FOR THE VALIDITY OF AGREEMENTS

Article 1320

In order to be valid, an agreement must satisfy the following four conditions:

(1)   there must be consent of the individuals who are bound thereby;

(2)   there must be capacity to conclude an agreement;

(3)   there must be a specific subject;

(4)   there must be an admissible cause.

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Article 1321

No agreement is of any value if granted by error, obtained by duress or by fraud.

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Article 1322

An error shall not render an agreement invalid unless such error relates to the substance of the subject matter of the agreement. Error shall not result in invalidity if it relates only to the identity of an intended party to the contract, unless the agreement is solely concluded with regard to this specific individual.

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Article 1323

Duress against an individual who has entered into an agreement, shall forms grounds for nullification of the agreement, notwithstanding that it was committed by a third party, who was not party to the said agreement.

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