Waiving Article 1266 and Article 1267 Indonesia Civil Code

law-books-and-gavelMost of agreements in Indonesia stipulate the waiver of Article 1266 and 1267 Civil Code because in the event of default or non-fulfillment of agreements by one of Parties, then:

a. The parties do not have to obtain the Court approval in order to terminate the Agreement. The termination of agreement can be conducted with the mutual consent of those parties.(Art.1266)

b. The party can enforce other Parties to fulfill its obligation or can demand the termination of the said agreement to the Court with compensation of cost, losses and interest (Art.1267)

Excerpt:

Article 1266 The termination requirement always deemed that is stipulated in the reciprocal agreement, if one party does not fulfill its obligation. In such case, the agreement isn’t null and void, but termination must be requested to the Court. The said request shall be conducted, although the termination requirement on non-performance obligations stipulated in the agreement.

If the termination requirement isn’t stipulated in the agreement, then the Judge reviews the conditions, based on the request of the defendant; freely provide a certain period to fulfill obligations, but that certain period cannot be longer than a month.

Article 1267 Party that his/her agreement was not fulfilled, can decide, to force other Parties to fulfill the agreement, if it still can be conducted, or demanded the termination of agreement, with compensation of cost, losses and interest.

The legal implication of waiving these articles is that the termination of agreement cannot return the first stage, but only terminate the agreement.

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2 thoughts on “Waiving Article 1266 and Article 1267 Indonesia Civil Code

  1. The 5TH Estate (@The_5TH_ESTATE_) says:

    Hi, My name is Robert S. Finnegan, I am a foriegn resident (American) fulfilling my obligation under Indonesian law requirements for Indonesian citizenship. I have lived with my wife, an Indonesian national off and on in Indonesia for 10 years and are now here permanently.

    Unfortunately, I discovered after the fact that my wife had signed a lease agreement waiving Article 1266 of the Indonesian Civil Code and we have very serious issues with the maintenance of our rented apartment at Taman Rasuna Tower II in downtown Jakarta.

    The landlord is not fulfilling his responsibility for the maintenance of the apartment and the roof in the bathroom is leaking and about to cave in. We cannot be held responsible for this damage – we live on the 22d Floor, and damage to other units is very likely. The landlord has been advised of the problems and has not performed required maintenance to date, it has been over six months.

    Is there anything we may do to to get them to perform? Is there any legal remedy we may explore?

    Terima Kasih,

    Robert S. Finnegan
    Publisher
    The 5th Estate
    Jakarta, Indonesia
    http://www.freepeoples5thestate.com/
    rsfinnegan@gmail.com
    0821-23-926857
    0812-98-177936

    • missjc says:

      Robert, it’s oke that you waive article 1266, means that you don’t need the court approval if you want to terminate your agreement with landlord. It means that you can terminate your lease agreement without court approval.
      How did you communicate with your landlord with regard to this matters? I cant give you specific advise on remedy since i dont see your lease agreement. You may talk with him that if he agrees, that you will fix the damage and the cost will be borne by the landlord. So you find someone to fix the damage.

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