<![CDATA[A commercial distribution agreement is an important legal instrument in trading activities that establishes a contractual relationship between producers and distributors, often on a long-term basis. In practice, such relationships may be affected by breaches of contract (wanprestasi), as occurred in the dispute between PT Parit Padang Global and PT Maesindo Indonesia, which resulted in Supreme Court Decision Number 555 K/Pdt/2025. This study aims to examine the qualification of breach of contract in commercial distribution agreements under Indonesian civil law and the legal considerations of the Supreme Court in the decision. This study employs a normative legal research method using a statutory approach, a conceptual approach, and a case approach. The legal materials consist of primary, secondary, and tertiary legal materials, which are analyzed qualitatively using deductive reasoning. The results show that the breach of contract committed by PT Maesindo Indonesia as the principal was qualified as a total failure to perform its obligations (algehele niet nakoming), namely the failure to take back the remaining products stored in the distributor's warehouse after the distribution agreement had ended, based on the fulfillment of the elements of breach of contract as stipulated in Articles 1320 and 1338 of the Indonesian Civil Code. The Supreme Court rejected the Defendant's appeal and upheld the Judex Facti decision, reasoning that a valid agreement remains legally binding after the contractual relationship has ended and that the Defendant was required to pay compensation amounting to IDR 5,035,642,749.32 pursuant to Articles 1243, 1246, and 1250 of the Indonesian Civil Code. The decision also rejected the obscuur libel objection and the exceptio non adimpleti contractus defense, reflecting an emphasis on substantive justice rather than a formalistic approach in resolving commercial contract disputes]]>
