Each party or individual has rights and obligations resulting from the agreement that has been made between them. If one party does not fulfill its obligations voluntarily, the other party or the person who feels aggrieved has the right to sue it legally. The purpose of an agreement is to realize legal binding by fulfilling the legal requirements of the agreement, which are regulated in Article 1320 of the Civil Code, consisting of subjective and objective conditions. The following is the description:

1. Subjective conditions
2. Agreement of those who bind themselves; and
3. Proficiency in making an agreement.
4. Objective condition
5. There is a certain subject matter; and
6. A cause that is not prohibited.

In addition to the legal requirements of the agreement, the agreement must also fulfill the following elements:

1. The essential element is something that must exist and is the main thing and must be included in an agreement.
2. The natural element is a general legal provision, a condition that is usually included in an agreement.
3. Accidental elements are various special matters stated in the agreement agreed by the parties and are complementary elements in an agreement.

Furthermore, Article 1338 of the Civil Code states that agreements made in accordance with the law shall also apply as law to the parties involved in the agreement. Therefore, an agreement that has fulfilled these conditions cannot be canceled unilaterally; instead, the consent of both parties is a condition for unilateral cancellation. Unilateral cancellation can only be done with legally sufficient reasons.

IF THE AGREEMENT IS MADE BY AN INCAPABLE PERSON

Article 1754 of the Civil Code describes debt and credit as follows:

Pinjam pakai habis is an agreement, which determines that the first party hands over a certain amount of consumable goods to the second party on the condition that the second party will return similar goods to the first party in the same amount and condition.

Since debts and credits fall under the category of agreements, Article 1329 of the Civil Code must be used when making a debt and credit agreement. This article states that every person has the authority to make agreements, unless he is declared unfit.

In terms of the age limit for the ability to enter into an agreement, Article 1330 of the Civil Code states that a person is considered capable of entering into an agreement when he/she is “mature”, where “mature” means a person who has reached 21 years of age and/or has been married even if he/she has not reached that age.

To be a notary public (such as to make an agreement), a person must be at least 18 years old or married and have the ability to perform legal acts, according to Article 39 (1) of Law 2/2014. An agreement made by an incapable person can be legally voided. Civil Code Article 1331 states:

Therefore, persons who in the preceding article are declared incapable of entering into agreements, may sue for the annulment of the agreements they have made in the event that the power to do so is not excluded by law. Persons who are competent to bind themselves, can in no way raise a denial on the basis of incompetence of minors, persons placed under guardianship and married women.

In this section, it is explained that any party who is considered incapable as stipulated in Article 1330 of the Civil Code has the right to cancel the agreement. So, if one of the minor parties does not meet the legal requirements of an agreement, then the agreement can be canceled. However, if it is not canceled, the agreement will remain binding.

CONSEQUENCES OF A DEBT AND CREDIT AGREEMENT THAT IS CANCELED BY THE COURT

Article 1451 of the Civil Code which reads:

The declaration of nullity of agreements based on the incompetence of the persons mentioned in Article 1330, results in the restoration of the goods and persons concerned in the state as before the agreement was made, with the understanding that everything that has been given or paid to an unauthorized person, as a result of the agreement, can only be claimed back if the goods concerned are still in the hands of the unauthorized person, or if it turns out that this person has benefited from what has been given or paid or if what has been enjoyed has been used for his benefit.

It is possible that as a result of the annulment of an agreement, as described in Article 1451 of the Civil Code above, the condition of the goods and the injured person is restored to the original position as it was before the agreement.

The request for annulment of the agreement also results in the prosecution of remedies, even the right to seek compensation by the aggrieved party. Conversely, the other party who has received a performance from the other party must return the performance in its entirety.

If either party is unable to restore the original situation, they can file a lawsuit. The purpose of the lawsuit is to cancel the previous agreement, which means that the situation and conditions return to what they were before the agreement took place.

Legal Basis:

1. Civil Code;
2. Law Number 30 of 2004 concerning Notary Position;
3. Law Number 2 of 2014 on the Amendment to Law Number 30 of 2004 on the Position of Notary.

Reference:

Hukumonline.com