KUHPer XVIII
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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 1688-1778) - Page 22 (Article 1779-1864) - Page 23 (Article 1865-1955) - Page 24 (Article 1956-1993)
Chapter IV - Concerning The Nullification Of Contracts
Article 1415
Renewal of a debt shall not be presumed; such intention shall be clearly evident from the deed.
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Article 1416
Renewal of debt, in the event of substitution of a new debtor, may take place without the cooperation of the first debtor.
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Article 1417
Delegation or transfer, in which a debtor provides his creditor with another debtor who shall then be bound to the creditor, shall not create a renewal of debt, if the creditor does not expressly declare that he had intended to release the debtor who has executed the transfer, from the agreement.
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Article 1418
The creditor of the debtor, who has effected the transfer, and as a result of which has been released from his obligations, shall not be entitled to prosecute his substitute if he has become bankrupt or insolvent, unless this has been expressly stated in the agreement, or if the substitute debtor at the time of transfer had been clearly bankrupt, or if his business had been in a state of decline.
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Article 1419
The debtor, who, pursuant to the transfer, has bound himself to a new creditor, and as a result thereof has been released from all obligations with respect to his previous creditor, may not raise objections to the new creditor, which he could have applied to the old creditor, notwithstanding that this restriction has not been notified to him at the execution of the new contract, however, this shall not remove his right to claim recourse from the original creditor.
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Article 1420
An appointment by the debtor, of an individual to carry out payment on his behalf, shall not result in a renewal of debt. The same shall apply to a single appointment by the creditor of an individual to accept on his behalf.
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Article 1421
The privileges and mortgages, related to the old debt, shall not pass to the substitute, unless such is expressly stipulated by the creditor.
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Article 1422
If the renewal of debt is created by the substitution of a new debtor, the privileges and mortgages, which originally were related to the debt claim, shall not pass to the assets of the new debtor.
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Article 1423
If the renewal of debt takes place between the creditor and one of the debtors who are severally liable, the privileges and the mortgages may not remain in effect other than in respect of the assets of the individual who is concluding the new contract of indebtedness.
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Article 1424
The renewal of debt concluded between the creditor and one of the debtors who are severally liable, shall result in the other debtors being released from their contract. Renewal of debt, created in respect of debtors who are severally liable, shall release the guarantors. If, however, the creditor demands, in the first instance, the participation of the co-debtors, and in the second instance the participation of the guarantors, and the co-debtors or guarantors refuse to participate in the new arrangement, the original contract of indebtedness shall continue in effect.
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Article 1425
If two persons are debtors to one another, a comparison of debts shall be made, as a result of which the mutual debts shall be canceled, in the manner and in the instances hereinafter stipulated.
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Article 1426
Comparison shall take place legally notwithstanding that the debtors are unaware of it, and both debts shall cancel one another, at the time that they exist simultaneously, in respect of the same reciprocal amount.
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Article 1427
Comparison shall only take place between two debts which both have a specific sum of money as the subject, or a specific number of assets of the same kind, which shall be expended by use, and which are, mutually susceptible to an immediate settlement and collection. Delivery of food products, grains and other agricultural products which are not being disputed, and of which the value is stipulated in price lists or other such information customarily used in Indonesia, can be compared against settled and collectable sums of money.
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Article 1428
An extension of payment obtained shall not restrict comparison.
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Article 1429
The comparison shall take place for any reason resulting in mutual debts, with the following exceptions:
- (1) if the return of some assets from which the owner has unlawfully been expropriated, is demanded;
- (2) if the return of assets, which have been placed in custody or have been lent, is demanded;
- (3) if the debt results mainly from means of livelihood which have been declared to be prohibited from being seized.
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Article 1430
A guarantor may compare that which the creditor owes the debtors who are severally liable, but the debtors who are severally liable may not compare that which the creditor owes the guarantor. The debtors who are severally liable also shall not reciprocate with that which is owing from the creditor to one of the other debtors.
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Article 1431
A debtor who has clearly agreed to an assignment of rights by the creditor to a third party, can no longer make use of the comparison against the individual for whose benefit the assignment took place, which he could have made use of against his creditor. An assignment of rights, which was not approved by the debtor, but which has been notified to him, shall only restrict the comparison of the debts which arose after the notification.
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Article 1432
If the mutual debts are not payable at the same location, they may not be compared unless there is reimbursement of the costs incurred in the assignment.
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Article 1433
In the event of several debts being susceptible to comparison and being claimable from one person, one shall, with regard to the comparison, follow the rules stipulated in article 1399.
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Article 1434
Comparison shall not occur to the disadvantage of the rights acquired by a third party. In this regard, a debtor who has become a creditor, following the seizure by a third party of that which is owed, cannot, to the disadvantage of the person effecting seizure, benefit from comparison of debt.
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Article 1435
A person, who has settled a debt, which has been legally nullified by comparison, may no longer upon claiming the debt which he has not compared, avail of the privileges and mortgages which were related to the debt to the disadvantage of a third party,, unless he has lawful grounds for pleading ignorance of the existence of the debt with which his debt should have been compared.
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Article 1436
If the attributes of the creditor and debtor are united in one and the same person, a consolidation of debts shall take place by law, which shall nullify the debt.
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Article 1437
Consolidation of debts which has taken place with the principal debtor, shall also benefit his guarantors. If it takes place with the guarantor, it shall not result in the nullification of the principal contract. If it takes place with one of the debtors who are severally liable, it shall benefit the other debtors who are severally liable in respect only of the part of the debt which he owes.
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Article 1438
A discharge of a debt shall not be presumed, but must be proven.
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Article 1439
The voluntary return of an original private proof of debt by the creditor to the debtor, shall prove the discharge of the debt, even with respect to the co-debtors who are severally liable.
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Article 1440
The discharge of a debt, or the release granted pursuant to an agreement for the benefit of one of the co-debtors who are severally liable, shall release all the others, unless the creditor expressly reserves his rights with respect to the latter mentioned; in which case, he cannot claim the debt until after the deduction of the share of the individual whose debt has been discharged.
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Article 1441
The return of assets provided as collateral shall not be sufficient proof of the discharge of a debt.
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Article 1442
The discharge of a debt, or the release pursuant to an agreement, granted to the principal debtor, shall also discharge the guarantors. The discharge granted to the guarantor shall not release the principal debtor. The discharge granted to one of the guarantors, shall not release the others.
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Article 1443
The amount received by a creditor from a guarantor for fulfillment of the guarantee, shall be deducted from the debt, and shall be used to settle the debt of the principal debtor and the other guarantors.
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Article 1444
In the event that the specific assets, which constitute the subject matter of the agreement, are destroyed, cannot be traded, or are lost, to the extent that one is not aware whether or not the assets still exist, the agreement shall become void, unless the assets are destroyed or lost due to no fault of the debtor, and prior to his negligence in delivering the assets. The contract shall also be voided in the event that the debtor fails to deliver the assets which were not insured against unforeseen circumstances; similarly, in the event that the assets are delivered to the creditor and are destroyed in the same manner, the contract shall also be voided. The debtor must prove the unforeseen circumstances alleged. Regardless of the manner in which expropriated assets are destroyed or lost, it shall not release the individual who has expropriated these assets from the obligation to compensate to the value thereof.
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Article 1445
If the assets owed are destroyed, can no longer be traded or are lost through no fault of the debtor, the debtor is required, in the event that he has any rights or claims for recourse related to these assets, to release them to the creditor.
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Article 1446
All contracts concluded by minors or individuals under guardianship, are legally void, and must be declared void, upon a claim filed by one of them or on their behalf, based upon the grounds of their minority or guardianship. Contracts, concluded by married women and by minors who have been acknowledged as competent, shall only be void by law, to the extent that the contracts concluded are beyond their competence.
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Article 1447
The provision in the previous article shall not apply to contracts resulting from a misdemeanor or infringement, or from any act which has caused damage to another party. Minority cannot be invoked in respect of contracts by minors, prenuptial agreements, in due observance of article 151, or to labor agreements, in due observance of article 1601g, or to labor agreements to which article 1601f is applicable.
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Article 1448
If the formalities for the benefit of minors and individuals under guardianship and which are required for the validity of certain deeds have been complied with, or if the person who exercises parental authority, or the guardian who exercises guardianship, has performed acts, provided that such shall not be beyond his competence, the minors and individuals under guardianship, with respect to their acts, shall be deemed to have committed such after having come of age or outside guardianship, without prejudice to their rights to claim recourse from those who exercise parental authority, the guardians, or the conservators, if there are grounds therefore.
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Article 1449
Contracts concluded under duress, or due to error or fraud, shall result in a legal claim to nullify such.
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Article 1450
If adults, and also minors if they have been regarded as adults, have been disadvantaged, they may only demand the nullification of the contracts, in the specific instances stipulated by law.
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Article 1451
The nullification of contracts, based upon the incompetence of the individuals as mentioned in article 1330, shall result in the restoration of the assets and the parties to the position that they were in prior to the conclusion of the contract, provided that anything granted or paid to the incompetent parties, as a result of the contract, may be reclaimed to the extent only that such is still in the possession of the incompetent party, or to the extent that it appears that the settlement or payment has been beneficial to him, to the extent that what has been enjoyed has been used or extended for his benefit.
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Article 1452
Nullification, on grounds of duress, error or fraud, shall also result in the assets and the parties being restored to the position that they were in prior to the conclusion of the contract.
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Article 1453
In the instances stipulated in articles 1446 and 1449, the individual against whom the legal claim for nullification is granted shall also be bound, to reimburse the costs, damages and interest payments, provided that there are grounds therefor.
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Article 1454
In all instances where the period during which a legal claim for nullification of a contract may be made is not limited to a shorter time period by a specific legal regulation, the period shall be five years. The period shall be effective as follows: in case of minority, from the date on which the age of majority is reached; in case of guardianship, from the date that such shall cease; in case of duress, from the date that such has ceased; in case of error or fraud, from the date of discovery; in case of acts of a married woman concluded without authorization of the husband, from the date of dissolution of the marriage; in case of invalidity, which was covered in article 1341, from the date upon which the required level of awareness exists. The above-mentioned time period within which the legal claim must be filed shall not apply to the invalidity which can be presented as a defense or demurrer, which may always be brought.
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Article 1455
The individual, who purports to be able to claim the nullification of a contract on various grounds, is required to submit evidence of all those grounds and shall be liable to punishment upon late submission of same, unless the opposing party could not have notified such individual earlier.
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Article 1456
The legal claim for nullification shall lapse, if, the minor, an individual under guardianship, a married woman who has acted without the assistance of her husband, or those who can cause duress, error or fraud, have confirmed the contract expressly or by implication, following the date of the coming of age of the minor, the discontinuance of guardianship, the dissolution of marriage, the discontinuance of force, or the discovery of the error or fraud. Notes regarding usury ordinance 1938 S.38-524, effective September 9, 1938 (following Article 1456 in Indonesian version) The Royal Decision (K.B.) of July 17, 1916, Ind. S.16-643, opposing usury, is hereby revoked and Article 2 of the Usury Ordinance stipulates as follows:
- (1) If, from the beginning, a difference of value has arisen with in regard to the mutual obligations of the parties to an agreement, and the imbalance, considering the circumstances is considered to be excessive, the judge, may, at the request of the disadvantaged party, or in official capacity, limit the obligation of such party or declare the agreement void, unless there is probable cause that the disadvantaged party has fully anticipated the consequences of the agreement concluded and he has not acted frivolously, based upon lack of experience or in a state of emergency.
- (2) Evidence by witnesses is admissible in all circumstances
- (3) Prior to passing a decision, as set forth in the first paragraph, the judge shall allow the parties to speak of the circumstances which could have justified the excessive imbalance of the mutual obligations.
- (4) Should the judge pass a decision, as set forth in the first paragraph, he shall, in his judgment, regulate the consequences for both parties in a fair fashion, provided that in the event of nullification of the agreement, the parties shall be required to be re-instated in the condition that they were in, prior to the entering of the agreement.
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Chapter V - Concerning Sale And Purchase
Article 1457
A sale and purchase is an agreement, by which one party is bound to deliver a certain matter, for which the other party shall pay a stipulated price.
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Article 1458
The agreement shall be deemed to be concluded between the parties as soon as agreement has been reached concerning the subject matter and the price, notwithstanding that the matter has not been delivered, or that payment has not been made.
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Article 1459
The ownership of the asset sold shall not be transferred to the buyer until after delivery takes place which shall occur in accordance with articles 612, 613 and 616.
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Article 1460
If the asset sold consists of a specific article, it shall be, from the time of the purchase, the liability of the buyer, notwithstanding that delivery has not yet taken place; and the seller shall be entitled to demand the consideration.
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Article 1461
In the event that assets are not sold by quantity, but according to weight, number or size, such assets shall be the liability of the seller until they are weighed, counted or measured.
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Article 1462
If, however, the assets are sold by quantity, these shall be the liability of the buyer, notwithstanding that the assets have not been weighed, counted or measured.
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Article 1463
Sale and purchase by trial, or of assets which an individual usually samples beforehand, shall always be presumed to have taken place pursuant to a condition precedent.
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Article 1464
In the event that the sale has been executed with the payment of a deposit, none of the parties can cancel the sale by retaining or returning the deposit.
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Article 1465
The sale price shall be determined by the parties. The valuation, however, shall be determined by a third party. If the third party is unwilling or unable to do so, then no sale shall take place.
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Article 1466
The expenses incurred in the sale and purchase deed and other additional costs, shall be payable by the buyer, unless it has been stipulated otherwise.
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Article 1467
No sale or purchase shall take place between spouses, with the exception of in the three following instances:
- (1) If one of the spouses transfers the assets to the other spouse from whom he or she has been legally divorced, in order to provide the spouse with that which he or she is entitled to in accordance with the law.
- (2) If there is a valid reason for the transfer carried out by the husband to the wife, notwithstanding that they are not legally divorced, for example in order to return the assets of the wife which have been sold or a sum of money belonging to her, if the assets sold or the money are excluded from the community property.
- (3) In the event that a wife transfers the assets to her husband in consideration for a sum of money which was promised to him a dowry, to the extent that these assets are not part of the community property.
However, in these three instances, the rights of the heirs of the parties involved shall not be prejudiced, if one of the latter mentioned shall also be entitled to an indirect benefit.
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Article 1468
Judges, members of the prosecution counsel, court clerks, attorneys, litigators, process servers and notaries shall not be entitled to rights and legal claims in respect of which lawsuits are still pending at the court of justice in whose legal jurisdiction they are serving; breach of this provision shall result in nullification and shall render the guilty party liable for compensation of costs, damages and interest.
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Article 1469
Public officials shall not, on their own behalf or on behalf of other individuals, purchase assets which are sold by them or in their presence, and breach of this provision shall result in the same punishment being imposed. With regard to movable assets, the Governor General shall have the authority to, in the public's interest, release the officials from the aforementioned prohibition, if he deems it advisable. He shall also in specific circumstances, provided that it is in the interest of the sellers, grant permission to the officials as mentioned in this article to purchase immovable assets which are sold in their presence.
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Article 1470
The same punishment shall also apply to the following or other individuals, who shall not act as buyers in a private sale: trustees of assets the sale of which they have been assigned with; managers of assets belonging to the land and public institutions, which have been assigned to their care and management. It shall however be at the discretion of the Governor General to grant release of this prohibition to the public managers. The guardians may buy the immovable assets belonging to their wards, in the manner stipulated in article 399.
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Article 1471
The sale and purchase of another person's assets shall be void, and may result in a claim against the seller for compensation of costs, damages and interest, if the buyer was unaware that the assets belonged to somebody else.
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Article 1472
If, at the time of the sale, the assets sold are entirely destroyed, the sale shall be void. If, however, only part thereof is destroyed, the buyer shall be entitled to forego the sale, or claim the remaining part, and to determine the sale price thereof pursuant to comparative appreciation.
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Article 1473
The seller is required to clearly express his commitments; all vague and ambiguous stipulations shall be interpreted in a manner to his disadvantage.
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Article 1474
He shall have two main obligations; to deliver the sold assets and to safeguard them.
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Article 1475
Delivery is a transfer of the assets sold into the control and ownership of the buyer.
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Article 1476
The costs of the delivery shall be borne by the seller, and the pick-up costs shall be at the expense of the buyer, unless otherwise stipulated.
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Article 1477
Delivery shall take place at the location where the sold goods are located at the time of the sale, unless otherwise agreed.
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Article 1478
The seller shall not be obligated to deliver the assets, if the buyer has not paid the sale price, and if the seller has not granted him an extension of the period for payment.
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Article 1479
Revoked by S. 1906-348.
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Article 1480
the event that delivery does not take place due to the seller's negligence, the buyer may demand nullification of the sale in accordance with the provisions of article 1266 and 1267.
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Article 1481
The assets shall be delivered in the condition that they are in at the time of the sale. All gains shall belong to the buyer with effect from that date.
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Article 1482
The obligation to deliver assets shall include anything which is attached thereto and which is intended for the owner's permanent use, including evidence of ownership, if such exists.
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Article 1483
The seller must deliver that which is sold in its entirety, as stipulated in the agreement, subject to amendments hereinafter mentioned.
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Article 1484
If the sale of immovable assets has taken place and stipulations have been made regarding the extent thereof or contents which are further stipulated to be subject to a certain price for that measurement, the seller shall be obligated to deliver the amount stipulated in the agreement; and if he is unable to do so, or if the buyer does not demand such, the seller shall be obligated to accept with a proportionate reduction of the price.
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Article 1485
If, however, in the circumstances referred to in the previous article, the size of the immovable assets is greater than stipulated in the agreement, the buyer shall have the option to either increase the price proportionately, or to cancel the sale, if the excess exceeds one twentieth of the size stipulated in the agreement.
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Article 1486
In all other circumstances, whether regarding the sale of a certain article, or a sale which concerns separate and specific plots of land and which states the size or describes the assets sold, followed by the statement of size, the statement of the size shall not provide grounds for the seller to increase the price in respect of the increase in size, nor shall it provide the buyer with grounds for any reduction in the price if there is a reduction in size, other than to the extent that the difference between the actual size and the one stated in the agreement, shall be approximately one twentieth, as computed according to the value of the entire sold assets, unless otherwise stipulated.
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Article 1487
In the event that there are grounds for increasing of the sale price in respect of the increase in size in accordance with the previous article, the buyer shall have the option to cancel the sale or pay the increased sale price including interest, if he has retained the immovable assets.
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Article 1488
In all circumstances in which the buyer has the right to cancel the sale, the seller shall be bound to, in addition to the sale price, if he has received such, return the costs incurred in the sale and delivery, to the extent that he has paid such in accordance with the agreement.
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Article 1489
The seller's legal entitlement to supplement the sale price, and the buyer's legal claim for reduction of the price or cancellation of the sale, shall be filed within a period of one year effective from the day on which delivery took place; failure to comply with such time period shall cause these legal claims to lapse.
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Article 1490
In the event that two plots of land in the same agreement are sold together for one price and the size of each is stipulated and it appears that one is bigger than the other, the difference shall be settled by reconciling the amounts until the required amount has been reached, and the claim either for an increase in or reduction of the sale price shall no longer proceed, unless in accordance with the rules mentioned above.
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Article 1491
The obligation of the seller to the buyer to provide a warranty, ensures the following two matters, firstly, the safe and peaceful ownership of the assets sold; secondly, the security against any hidden defects in the assets, or those hidden defects which may cause cancellation of the sale.
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Article 1492
Notwithstanding that no stipulations have been made regarding the warranty at the time of sale, the seller shall be legally obligated to indemnify the buyer against dispossession which may be enforced against the entire sold assets or part thereof, or against the encumbrances which one claims to have on such assets, and which have not been disclosed at the time of the purchase.
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Article 1493
The parties may, pursuant to specific agreements increase or reduce the obligations stipulated by law; they may even agree that the seller shall not be bound by any kind of warranty.
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Article 1494
Notwithstanding that it has been stipulated that the seller shall not be bound to provide a warranty, he shall remain liable for the consequences of any acts committed by him; all agreements to the contrary shall be void.
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Article 1495
The seller shall, pursuant to the same stipulation, in the event of dispossession, be obliged to return the consideration for the sale, unless the buyer, at the time of the sale, was aware of the danger of dispossession or purchased the assets at his own risk.
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Article 1496
If the warranty has been provided or if nothing has been stipulated, the buyer shall be entitled, in the event of dispossession, to claim the following from the seller:
- (1) the return of the sale consideration;
- (2) the return of the proceeds, in the event he is obligated to return those to the owner carrying out dispossession;
- (3) the costs incurred by the buyer in filing the claim, as well as the costs incurred by the original claimant;
- (4) the compensation of costs, damages and interest, including the legal costs incurred in the sale and delivery, to the extent that the buyer has paid such.
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Article 1497
If at the time of dispossession, it is discovered that the assets sold have depreciated in value or have clearly deteriorated as a result of either the negligence of the buyer or force majeure, the seller shall be bound to return the entire consideration. However, if the buyer has benefited from the damage caused by him, the seller shall be entitled to deduct an amount equivalent to the profit enjoyed by the buyer from the consideration.
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Article 1498
If the sold assets are discovered, at the time of the dispossession, to have appreciated in value, notwithstanding that the buyer has not committed any acts, the seller shall be obligated to pay the buyer the portion of the price which exceeds the sale value.
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Article 1499
The seller shall be obligated to return to the buyer, or through the individual who has effected dispossession on the seller's behalf, any amount which the buyer has spent towards repairs and necessary improvements to the assets. If the seller disposes of another person's assets in bad faith, he shall be obligated to return all costs incurred to the buyer, even those which were only spent to improve or alter the assets.
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Article 1500
In the event that only part of the assets is dispossessed, and that particular part, in relation to the entire assets, is so distinct that the buyer would not have made the sale without the part dispossessed, he may cancel the sale, provided that he has filed the legal claim within one year following the day on which the judgment for dispossession has obtained legal validity.
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Article 1501
If the sale is not canceled in the event that there is a claim for part of the sold assets, the buyer shall be compensated for the part that has been dispossessed according to the value at which the assets were appraised at the time of the dispossession, but not in proportion to the entire sale price, whether the sold assets have appreciated or depreciated in value.
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Article 1502
If the sold assets appear to be encumbered by servitude's, and this fact has not been notified to the buyer, or he is unaware of it, and the servitude's are of such significance that one has reason to presume that the buyer would not have concluded the sale if he had knowledge thereof, he may demand the cancellation of the sale, unless he shall prefer to be compensated.
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Article 1503
The warranties with respect to dispossession shall cease, if, the buyer, pursuant to the judgment which has obtained legal validity, has been sentenced without having had to summon the seller, and the latter proves that there were sufficient grounds to reject the claim.
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Article 1504
The seller shall be bound to warrant against hidden defects of the sold assets, which would render them unsuitable for the intended use, or which would reduce the use in such manner, that if the buyer had been aware of such defects, he would not have purchased those assets, or would have purchased them at a lower price.
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Article 1505
The seller shall not be obliged to be responsible for visible defects, which the buyer could have discovered himself.
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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 1688-1778) - Page 22 (Article 1779-1864) - Page 23 (Article 1865-1955) - Page 24 (Article 1956-1993)
Laws - Topics - Cases - Documents - Glossary
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Laws - Topics - Cases - Documents - Glossary
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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 1688-1778) - Page 22 (Article 1779-1864) - Page 23 (Article 1865-1955) - Page 24 (Article 1956-1993)
Chapter IV - Concerning The Nullification Of Contracts
Article 1415
Renewal of a debt shall not be presumed; such intention shall be clearly evident from the deed.
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Article 1416
Renewal of debt, in the event of substitution of a new debtor, may take place without the cooperation of the first debtor.
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Article 1417
Delegation or transfer, in which a debtor provides his creditor with another debtor who shall then be bound to the creditor, shall not create a renewal of debt, if the creditor does not expressly declare that he had intended to release the debtor who has executed the transfer, from the agreement.
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Article 1418
The creditor of the debtor, who has effected the transfer, and as a result of which has been released from his obligations, shall not be entitled to prosecute his substitute if he has become bankrupt or insolvent, unless this has been expressly stated in the agreement, or if the substitute debtor at the time of transfer had been clearly bankrupt, or if his business had been in a state of decline.
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Article 1419
The debtor, who, pursuant to the transfer, has bound himself to a new creditor, and as a result thereof has been released from all obligations with respect to his previous creditor, may not raise objections to the new creditor, which he could have applied to the old creditor, notwithstanding that this restriction has not been notified to him at the execution of the new contract, however, this shall not remove his right to claim recourse from the original creditor.
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Article 1420
An appointment by the debtor, of an individual to carry out payment on his behalf, shall not result in a renewal of debt. The same shall apply to a single appointment by the creditor of an individual to accept on his behalf.
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Article 1421
The privileges and mortgages, related to the old debt, shall not pass to the substitute, unless such is expressly stipulated by the creditor.
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Article 1422
If the renewal of debt is created by the substitution of a new debtor, the privileges and mortgages, which originally were related to the debt claim, shall not pass to the assets of the new debtor.
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Article 1423
If the renewal of debt takes place between the creditor and one of the debtors who are severally liable, the privileges and the mortgages may not remain in effect other than in respect of the assets of the individual who is concluding the new contract of indebtedness.
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Article 1424
The renewal of debt concluded between the creditor and one of the debtors who are severally liable, shall result in the other debtors being released from their contract. Renewal of debt, created in respect of debtors who are severally liable, shall release the guarantors. If, however, the creditor demands, in the first instance, the participation of the co-debtors, and in the second instance the participation of the guarantors, and the co-debtors or guarantors refuse to participate in the new arrangement, the original contract of indebtedness shall continue in effect.
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Article 1425
If two persons are debtors to one another, a comparison of debts shall be made, as a result of which the mutual debts shall be canceled, in the manner and in the instances hereinafter stipulated.
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Article 1426
Comparison shall take place legally notwithstanding that the debtors are unaware of it, and both debts shall cancel one another, at the time that they exist simultaneously, in respect of the same reciprocal amount.
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Article 1427
Comparison shall only take place between two debts which both have a specific sum of money as the subject, or a specific number of assets of the same kind, which shall be expended by use, and which are, mutually susceptible to an immediate settlement and collection. Delivery of food products, grains and other agricultural products which are not being disputed, and of which the value is stipulated in price lists or other such information customarily used in Indonesia, can be compared against settled and collectable sums of money.
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Article 1428
An extension of payment obtained shall not restrict comparison.
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Article 1429
The comparison shall take place for any reason resulting in mutual debts, with the following exceptions:
- (1) if the return of some assets from which the owner has unlawfully been expropriated, is demanded;
- (2) if the return of assets, which have been placed in custody or have been lent, is demanded;
- (3) if the debt results mainly from means of livelihood which have been declared to be prohibited from being seized.
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Article 1430
A guarantor may compare that which the creditor owes the debtors who are severally liable, but the debtors who are severally liable may not compare that which the creditor owes the guarantor. The debtors who are severally liable also shall not reciprocate with that which is owing from the creditor to one of the other debtors.
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Article 1431
A debtor who has clearly agreed to an assignment of rights by the creditor to a third party, can no longer make use of the comparison against the individual for whose benefit the assignment took place, which he could have made use of against his creditor. An assignment of rights, which was not approved by the debtor, but which has been notified to him, shall only restrict the comparison of the debts which arose after the notification.
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Article 1432
If the mutual debts are not payable at the same location, they may not be compared unless there is reimbursement of the costs incurred in the assignment.
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Article 1433
In the event of several debts being susceptible to comparison and being claimable from one person, one shall, with regard to the comparison, follow the rules stipulated in article 1399.
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Article 1434
Comparison shall not occur to the disadvantage of the rights acquired by a third party. In this regard, a debtor who has become a creditor, following the seizure by a third party of that which is owed, cannot, to the disadvantage of the person effecting seizure, benefit from comparison of debt.
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Article 1435
A person, who has settled a debt, which has been legally nullified by comparison, may no longer upon claiming the debt which he has not compared, avail of the privileges and mortgages which were related to the debt to the disadvantage of a third party,, unless he has lawful grounds for pleading ignorance of the existence of the debt with which his debt should have been compared.
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Article 1436
If the attributes of the creditor and debtor are united in one and the same person, a consolidation of debts shall take place by law, which shall nullify the debt.
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Article 1437
Consolidation of debts which has taken place with the principal debtor, shall also benefit his guarantors. If it takes place with the guarantor, it shall not result in the nullification of the principal contract. If it takes place with one of the debtors who are severally liable, it shall benefit the other debtors who are severally liable in respect only of the part of the debt which he owes.
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Article 1438
A discharge of a debt shall not be presumed, but must be proven.
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Article 1439
The voluntary return of an original private proof of debt by the creditor to the debtor, shall prove the discharge of the debt, even with respect to the co-debtors who are severally liable.
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Article 1440
The discharge of a debt, or the release granted pursuant to an agreement for the benefit of one of the co-debtors who are severally liable, shall release all the others, unless the creditor expressly reserves his rights with respect to the latter mentioned; in which case, he cannot claim the debt until after the deduction of the share of the individual whose debt has been discharged.
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Article 1441
The return of assets provided as collateral shall not be sufficient proof of the discharge of a debt.
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Article 1442
The discharge of a debt, or the release pursuant to an agreement, granted to the principal debtor, shall also discharge the guarantors. The discharge granted to the guarantor shall not release the principal debtor. The discharge granted to one of the guarantors, shall not release the others.
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Article 1443
The amount received by a creditor from a guarantor for fulfillment of the guarantee, shall be deducted from the debt, and shall be used to settle the debt of the principal debtor and the other guarantors.
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Article 1444
In the event that the specific assets, which constitute the subject matter of the agreement, are destroyed, cannot be traded, or are lost, to the extent that one is not aware whether or not the assets still exist, the agreement shall become void, unless the assets are destroyed or lost due to no fault of the debtor, and prior to his negligence in delivering the assets. The contract shall also be voided in the event that the debtor fails to deliver the assets which were not insured against unforeseen circumstances; similarly, in the event that the assets are delivered to the creditor and are destroyed in the same manner, the contract shall also be voided. The debtor must prove the unforeseen circumstances alleged. Regardless of the manner in which expropriated assets are destroyed or lost, it shall not release the individual who has expropriated these assets from the obligation to compensate to the value thereof.
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Article 1445
If the assets owed are destroyed, can no longer be traded or are lost through no fault of the debtor, the debtor is required, in the event that he has any rights or claims for recourse related to these assets, to release them to the creditor.
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Article 1446
All contracts concluded by minors or individuals under guardianship, are legally void, and must be declared void, upon a claim filed by one of them or on their behalf, based upon the grounds of their minority or guardianship. Contracts, concluded by married women and by minors who have been acknowledged as competent, shall only be void by law, to the extent that the contracts concluded are beyond their competence.
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Article 1447
The provision in the previous article shall not apply to contracts resulting from a misdemeanor or infringement, or from any act which has caused damage to another party. Minority cannot be invoked in respect of contracts by minors, prenuptial agreements, in due observance of article 151, or to labor agreements, in due observance of article 1601g, or to labor agreements to which article 1601f is applicable.
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Article 1448
If the formalities for the benefit of minors and individuals under guardianship and which are required for the validity of certain deeds have been complied with, or if the person who exercises parental authority, or the guardian who exercises guardianship, has performed acts, provided that such shall not be beyond his competence, the minors and individuals under guardianship, with respect to their acts, shall be deemed to have committed such after having come of age or outside guardianship, without prejudice to their rights to claim recourse from those who exercise parental authority, the guardians, or the conservators, if there are grounds therefore.
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Article 1449
Contracts concluded under duress, or due to error or fraud, shall result in a legal claim to nullify such.
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Article 1450
If adults, and also minors if they have been regarded as adults, have been disadvantaged, they may only demand the nullification of the contracts, in the specific instances stipulated by law.
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Article 1451
The nullification of contracts, based upon the incompetence of the individuals as mentioned in article 1330, shall result in the restoration of the assets and the parties to the position that they were in prior to the conclusion of the contract, provided that anything granted or paid to the incompetent parties, as a result of the contract, may be reclaimed to the extent only that such is still in the possession of the incompetent party, or to the extent that it appears that the settlement or payment has been beneficial to him, to the extent that what has been enjoyed has been used or extended for his benefit.
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Article 1452
Nullification, on grounds of duress, error or fraud, shall also result in the assets and the parties being restored to the position that they were in prior to the conclusion of the contract.
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Article 1453
In the instances stipulated in articles 1446 and 1449, the individual against whom the legal claim for nullification is granted shall also be bound, to reimburse the costs, damages and interest payments, provided that there are grounds therefor.
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Article 1454
In all instances where the period during which a legal claim for nullification of a contract may be made is not limited to a shorter time period by a specific legal regulation, the period shall be five years. The period shall be effective as follows: in case of minority, from the date on which the age of majority is reached; in case of guardianship, from the date that such shall cease; in case of duress, from the date that such has ceased; in case of error or fraud, from the date of discovery; in case of acts of a married woman concluded without authorization of the husband, from the date of dissolution of the marriage; in case of invalidity, which was covered in article 1341, from the date upon which the required level of awareness exists. The above-mentioned time period within which the legal claim must be filed shall not apply to the invalidity which can be presented as a defense or demurrer, which may always be brought.
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Article 1455
The individual, who purports to be able to claim the nullification of a contract on various grounds, is required to submit evidence of all those grounds and shall be liable to punishment upon late submission of same, unless the opposing party could not have notified such individual earlier.
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Article 1456
The legal claim for nullification shall lapse, if, the minor, an individual under guardianship, a married woman who has acted without the assistance of her husband, or those who can cause duress, error or fraud, have confirmed the contract expressly or by implication, following the date of the coming of age of the minor, the discontinuance of guardianship, the dissolution of marriage, the discontinuance of force, or the discovery of the error or fraud. Notes regarding usury ordinance 1938 S.38-524, effective September 9, 1938 (following Article 1456 in Indonesian version) The Royal Decision (K.B.) of July 17, 1916, Ind. S.16-643, opposing usury, is hereby revoked and Article 2 of the Usury Ordinance stipulates as follows:
- (1) If, from the beginning, a difference of value has arisen with in regard to the mutual obligations of the parties to an agreement, and the imbalance, considering the circumstances is considered to be excessive, the judge, may, at the request of the disadvantaged party, or in official capacity, limit the obligation of such party or declare the agreement void, unless there is probable cause that the disadvantaged party has fully anticipated the consequences of the agreement concluded and he has not acted frivolously, based upon lack of experience or in a state of emergency.
- (2) Evidence by witnesses is admissible in all circumstances
- (3) Prior to passing a decision, as set forth in the first paragraph, the judge shall allow the parties to speak of the circumstances which could have justified the excessive imbalance of the mutual obligations.
- (4) Should the judge pass a decision, as set forth in the first paragraph, he shall, in his judgment, regulate the consequences for both parties in a fair fashion, provided that in the event of nullification of the agreement, the parties shall be required to be re-instated in the condition that they were in, prior to the entering of the agreement.
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Chapter V - Concerning Sale And Purchase
Article 1457
A sale and purchase is an agreement, by which one party is bound to deliver a certain matter, for which the other party shall pay a stipulated price.
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Article 1458
The agreement shall be deemed to be concluded between the parties as soon as agreement has been reached concerning the subject matter and the price, notwithstanding that the matter has not been delivered, or that payment has not been made.
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Article 1459
The ownership of the asset sold shall not be transferred to the buyer until after delivery takes place which shall occur in accordance with articles 612, 613 and 616.
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Article 1460
If the asset sold consists of a specific article, it shall be, from the time of the purchase, the liability of the buyer, notwithstanding that delivery has not yet taken place; and the seller shall be entitled to demand the consideration.
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Article 1461
In the event that assets are not sold by quantity, but according to weight, number or size, such assets shall be the liability of the seller until they are weighed, counted or measured.
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Article 1462
If, however, the assets are sold by quantity, these shall be the liability of the buyer, notwithstanding that the assets have not been weighed, counted or measured.
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Article 1463
Sale and purchase by trial, or of assets which an individual usually samples beforehand, shall always be presumed to have taken place pursuant to a condition precedent.
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Article 1464
In the event that the sale has been executed with the payment of a deposit, none of the parties can cancel the sale by retaining or returning the deposit.
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Article 1465
The sale price shall be determined by the parties. The valuation, however, shall be determined by a third party. If the third party is unwilling or unable to do so, then no sale shall take place.
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Article 1466
The expenses incurred in the sale and purchase deed and other additional costs, shall be payable by the buyer, unless it has been stipulated otherwise.
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Article 1467
No sale or purchase shall take place between spouses, with the exception of in the three following instances:
- (1) If one of the spouses transfers the assets to the other spouse from whom he or she has been legally divorced, in order to provide the spouse with that which he or she is entitled to in accordance with the law.
- (2) If there is a valid reason for the transfer carried out by the husband to the wife, notwithstanding that they are not legally divorced, for example in order to return the assets of the wife which have been sold or a sum of money belonging to her, if the assets sold or the money are excluded from the community property.
- (3) In the event that a wife transfers the assets to her husband in consideration for a sum of money which was promised to him a dowry, to the extent that these assets are not part of the community property.
However, in these three instances, the rights of the heirs of the parties involved shall not be prejudiced, if one of the latter mentioned shall also be entitled to an indirect benefit.
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Article 1468
Judges, members of the prosecution counsel, court clerks, attorneys, litigators, process servers and notaries shall not be entitled to rights and legal claims in respect of which lawsuits are still pending at the court of justice in whose legal jurisdiction they are serving; breach of this provision shall result in nullification and shall render the guilty party liable for compensation of costs, damages and interest.
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Article 1469
Public officials shall not, on their own behalf or on behalf of other individuals, purchase assets which are sold by them or in their presence, and breach of this provision shall result in the same punishment being imposed. With regard to movable assets, the Governor General shall have the authority to, in the public's interest, release the officials from the aforementioned prohibition, if he deems it advisable. He shall also in specific circumstances, provided that it is in the interest of the sellers, grant permission to the officials as mentioned in this article to purchase immovable assets which are sold in their presence.
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Article 1470
The same punishment shall also apply to the following or other individuals, who shall not act as buyers in a private sale: trustees of assets the sale of which they have been assigned with; managers of assets belonging to the land and public institutions, which have been assigned to their care and management. It shall however be at the discretion of the Governor General to grant release of this prohibition to the public managers. The guardians may buy the immovable assets belonging to their wards, in the manner stipulated in article 399.
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Article 1471
The sale and purchase of another person's assets shall be void, and may result in a claim against the seller for compensation of costs, damages and interest, if the buyer was unaware that the assets belonged to somebody else.
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Article 1472
If, at the time of the sale, the assets sold are entirely destroyed, the sale shall be void. If, however, only part thereof is destroyed, the buyer shall be entitled to forego the sale, or claim the remaining part, and to determine the sale price thereof pursuant to comparative appreciation.
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Article 1473
The seller is required to clearly express his commitments; all vague and ambiguous stipulations shall be interpreted in a manner to his disadvantage.
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Article 1474
He shall have two main obligations; to deliver the sold assets and to safeguard them.
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Article 1475
Delivery is a transfer of the assets sold into the control and ownership of the buyer.
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Article 1476
The costs of the delivery shall be borne by the seller, and the pick-up costs shall be at the expense of the buyer, unless otherwise stipulated.
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Article 1477
Delivery shall take place at the location where the sold goods are located at the time of the sale, unless otherwise agreed.
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Article 1478
The seller shall not be obligated to deliver the assets, if the buyer has not paid the sale price, and if the seller has not granted him an extension of the period for payment.
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Article 1479
Revoked by S. 1906-348.
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Article 1480
the event that delivery does not take place due to the seller's negligence, the buyer may demand nullification of the sale in accordance with the provisions of article 1266 and 1267.
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Article 1481
The assets shall be delivered in the condition that they are in at the time of the sale. All gains shall belong to the buyer with effect from that date.
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Article 1482
The obligation to deliver assets shall include anything which is attached thereto and which is intended for the owner's permanent use, including evidence of ownership, if such exists.
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Article 1483
The seller must deliver that which is sold in its entirety, as stipulated in the agreement, subject to amendments hereinafter mentioned.
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Article 1484
If the sale of immovable assets has taken place and stipulations have been made regarding the extent thereof or contents which are further stipulated to be subject to a certain price for that measurement, the seller shall be obligated to deliver the amount stipulated in the agreement; and if he is unable to do so, or if the buyer does not demand such, the seller shall be obligated to accept with a proportionate reduction of the price.
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Article 1485
If, however, in the circumstances referred to in the previous article, the size of the immovable assets is greater than stipulated in the agreement, the buyer shall have the option to either increase the price proportionately, or to cancel the sale, if the excess exceeds one twentieth of the size stipulated in the agreement.
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Article 1486
In all other circumstances, whether regarding the sale of a certain article, or a sale which concerns separate and specific plots of land and which states the size or describes the assets sold, followed by the statement of size, the statement of the size shall not provide grounds for the seller to increase the price in respect of the increase in size, nor shall it provide the buyer with grounds for any reduction in the price if there is a reduction in size, other than to the extent that the difference between the actual size and the one stated in the agreement, shall be approximately one twentieth, as computed according to the value of the entire sold assets, unless otherwise stipulated.
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Article 1487
In the event that there are grounds for increasing of the sale price in respect of the increase in size in accordance with the previous article, the buyer shall have the option to cancel the sale or pay the increased sale price including interest, if he has retained the immovable assets.
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Article 1488
In all circumstances in which the buyer has the right to cancel the sale, the seller shall be bound to, in addition to the sale price, if he has received such, return the costs incurred in the sale and delivery, to the extent that he has paid such in accordance with the agreement.
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Article 1489
The seller's legal entitlement to supplement the sale price, and the buyer's legal claim for reduction of the price or cancellation of the sale, shall be filed within a period of one year effective from the day on which delivery took place; failure to comply with such time period shall cause these legal claims to lapse.
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Article 1490
In the event that two plots of land in the same agreement are sold together for one price and the size of each is stipulated and it appears that one is bigger than the other, the difference shall be settled by reconciling the amounts until the required amount has been reached, and the claim either for an increase in or reduction of the sale price shall no longer proceed, unless in accordance with the rules mentioned above.
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Article 1491
The obligation of the seller to the buyer to provide a warranty, ensures the following two matters, firstly, the safe and peaceful ownership of the assets sold; secondly, the security against any hidden defects in the assets, or those hidden defects which may cause cancellation of the sale.
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Article 1492
Notwithstanding that no stipulations have been made regarding the warranty at the time of sale, the seller shall be legally obligated to indemnify the buyer against dispossession which may be enforced against the entire sold assets or part thereof, or against the encumbrances which one claims to have on such assets, and which have not been disclosed at the time of the purchase.
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Article 1493
The parties may, pursuant to specific agreements increase or reduce the obligations stipulated by law; they may even agree that the seller shall not be bound by any kind of warranty.
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Article 1494
Notwithstanding that it has been stipulated that the seller shall not be bound to provide a warranty, he shall remain liable for the consequences of any acts committed by him; all agreements to the contrary shall be void.
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Article 1495
The seller shall, pursuant to the same stipulation, in the event of dispossession, be obliged to return the consideration for the sale, unless the buyer, at the time of the sale, was aware of the danger of dispossession or purchased the assets at his own risk.
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Article 1496
If the warranty has been provided or if nothing has been stipulated, the buyer shall be entitled, in the event of dispossession, to claim the following from the seller:
- (1) the return of the sale consideration;
- (2) the return of the proceeds, in the event he is obligated to return those to the owner carrying out dispossession;
- (3) the costs incurred by the buyer in filing the claim, as well as the costs incurred by the original claimant;
- (4) the compensation of costs, damages and interest, including the legal costs incurred in the sale and delivery, to the extent that the buyer has paid such.
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Article 1497
If at the time of dispossession, it is discovered that the assets sold have depreciated in value or have clearly deteriorated as a result of either the negligence of the buyer or force majeure, the seller shall be bound to return the entire consideration. However, if the buyer has benefited from the damage caused by him, the seller shall be entitled to deduct an amount equivalent to the profit enjoyed by the buyer from the consideration.
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Article 1498
If the sold assets are discovered, at the time of the dispossession, to have appreciated in value, notwithstanding that the buyer has not committed any acts, the seller shall be obligated to pay the buyer the portion of the price which exceeds the sale value.
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Article 1499
The seller shall be obligated to return to the buyer, or through the individual who has effected dispossession on the seller's behalf, any amount which the buyer has spent towards repairs and necessary improvements to the assets. If the seller disposes of another person's assets in bad faith, he shall be obligated to return all costs incurred to the buyer, even those which were only spent to improve or alter the assets.
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Article 1500
In the event that only part of the assets is dispossessed, and that particular part, in relation to the entire assets, is so distinct that the buyer would not have made the sale without the part dispossessed, he may cancel the sale, provided that he has filed the legal claim within one year following the day on which the judgment for dispossession has obtained legal validity.
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Article 1501
If the sale is not canceled in the event that there is a claim for part of the sold assets, the buyer shall be compensated for the part that has been dispossessed according to the value at which the assets were appraised at the time of the dispossession, but not in proportion to the entire sale price, whether the sold assets have appreciated or depreciated in value.
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Article 1502
If the sold assets appear to be encumbered by servitude's, and this fact has not been notified to the buyer, or he is unaware of it, and the servitude's are of such significance that one has reason to presume that the buyer would not have concluded the sale if he had knowledge thereof, he may demand the cancellation of the sale, unless he shall prefer to be compensated.
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Article 1503
The warranties with respect to dispossession shall cease, if, the buyer, pursuant to the judgment which has obtained legal validity, has been sentenced without having had to summon the seller, and the latter proves that there were sufficient grounds to reject the claim.
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Article 1504
The seller shall be bound to warrant against hidden defects of the sold assets, which would render them unsuitable for the intended use, or which would reduce the use in such manner, that if the buyer had been aware of such defects, he would not have purchased those assets, or would have purchased them at a lower price.
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Article 1505
The seller shall not be obliged to be responsible for visible defects, which the buyer could have discovered himself.
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