Most 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.