The Principles of Civil Law

1.      The principle of freedom of contract

In Article 1338 Point (1) Book of Civil Law stated “all agreements made legally valid as a law for those who make it”

This principle gives freedom to the parties to:

a.       Make and do not make an agreement

b.      Entered into an agreement with anyone

c.       Determine the contents of the agreement, implementation, and requirenments

d.      Determine the form of a written agreement or not

2.      The principle of consensualism

The principle of consensual can conclude in Article 1320 Point Book of Civil Law, one of requirements legitimate of agreement is deal of the two sides. This principle stated if agreements are generally not made formally, but only by deal of two sides.

3.      The principle of trust

This principle stated if each person will have an agreement that will satisfy every achievement that is held between them later on.

4.      The principle of binding force

Article 1340 Book of Civil Law stated “agreement applies only between the parties which make it”. But there is exception as Article 1317 Book of Civil Law stated “agreement may also be held for the benefit of third parties, if an agreement is made for its own sake or as a gift to someone else so the requirement is same”

5.      The principle of equality before the law

6.      The principle of balance

This principle requires both of parties meet and implement agreements. The creditor has the power to prosecute achievements and if necessary demand repayment of achievement through the richness of the debtor, but the debtor bear the obligation to implement the agreement in good faith.

7.      The principle of legal certainty (Pacta sun servanda)

This principle stated if judges and the third party must respect the substance of a contract made by a third party as befits legislation. They should not intervene on the substance of a contract made by the parties.

8.      The principle of moral

A voluntary act of a person can not sue for her rights to sue the achievement of the debtor.

9.      The principle of protection

This principle stated if between debtor and creditor must be protected by law. But, the party who need this protection is the party of debtor because this party in the weak position. This principles had been the foundation of the parties in determining and making contracts in daily activities.

10.  The principle of decency

In Article 1339 Book of Civil Law this principle relates to the provisions regarding the contents of the agreement required by propriety based on the nature of the agreement.

11.  The principle of good faith

In Article 1338 Point (3) Book of Civil Law stated “an agreement must do by good faith”. The parties that is creditor and debtor should carry out the substance of the contract is based on a firm beliefe of conviction as well as a good willingness of the parties.