The summary of European Research Studies Journal: The Principle of International Trade Contract as Reference of Indonesian Contract Law

In the globalization era, contract law is important issue especially to support activities in the trade sector and international business transactions. However, bringing the relation of the parties with the international sphere is not a simple theme, because when the parties of international contract are in different counties, they face difficulties in determining the rights and obligations.  So the solution for that problem must base on the theory of contract.

Contract conduct an agreement known, oral or and written, which is related to social business or trade. In black law dictionary, contract interpreted as “An agreement between two or more persons which creates an obligation to do or not to do a particular thing. In Indonesia, either Adat (customary) law or the Indonesia Civil Code governs contracts. As we know, Indonesia Civil Code is a law adopted from Dutch, but still exists nowadays and use in Indonesia.

From the Indonesia civil code, there are some principles and clauses that must be applied in contract in order to avoid harm elements. They are following freedom of contract, consensual principle, Pacta sunt Servanda and personality. All of the principles is Dutch-Style Civil Code, in fact that are now regarded as absolute or inappropriate for current commercial transaction. So Indonesia need to develop the regulation of contract law. Ferronica Taylor has been recommends that Indonesia future contract law is subject to UNIDROIT’s contractual legal principles (The United Nations International Trade Law).

UNIDROIT has published UNIDROIT Principles of international commercial contracts (UPICCs) 1994. UPPICC's international commercial contract rules extend to all parties that have decided that they will regulate their contract. However, the parties who sign the UPPICs without the need for ratification could use the clause. Since January 1^st 2009, Indonesia has been of UNIDROIT member which was marked by endorsement with the presidential regulation number 59 of 2008 about International Institute for the unification of private law (UNIDROIT) which enacted 2 September 2008. 

The following are some of the main contract law concepts found in UPICCs that can be used to inform contract law renewal in Indonesia: (1) The principles of freedom of contract. This principles more detail, applicable, flexibility than the settings contained in Indonesia Civil Code; (2) consensual and real principles as the basis for binding contracts, actually there must have a negotiation session for reach a good faith; (3) the definition of contract; (4) Gross disparity; (5) did not govern a standard contract; (6) hardship.

For conclusion, UNIDROIT is a principles that may use by the legal practitioners as well as legal consultants and scientist in Indonesia in order to protect the interests of business practitioners of both producers and consumer I international contract in this new era.