Claim Missing Document
Check
Articles

Found 1 Documents
Search

THE APPLICATION OF THE HARDSHIP RULE UNDER THE UNIDROIT PRINCIPLES OF INTERNATIONAL COMMERCIAL CONTRACTS IN INDONESIA Fikri Farokhi Skd; Sanusi Bintang
Student Journal of International Law Vol 2, No 1: August 2022
Publisher : Universitas Syiah Kuala

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24815/sjil.v2i1.21192

Abstract

This research aims to understand more comprehensively how the concept of hardship rule can be interpreted based on the UNIDROIT Principles of International Commercial Contracts (hereinafter called UPICC) and how it compares with force majeure regulated by the Indonesian Civil Code (hereinafter called ICC), as well as to analyze how it is applied in Indonesia as seen from the Indonesian court decisions. This study uses a normative legal research method. The result of this study is that the meaning of the hardship rule under the UPICC is an event that has fundamentally changed the balance of a contract, resulting in a very high implementation value for the party performing, or the value of the implementation of the agreement is drastically reduced for the receiving party. Hardship and force majeure both occur in circumstances that preclude the obligation to perform that cannot be anticipated in advance, and the fault of either party does not cause the situation. The hardship rule emphasizes changes in circumstances by one of the parties to the contract caused by the contract value that changes significantly, causing great losses for one of the parties, and hardship offers renegotiation for the parties. Meanwhile, force majeure is emphasized when the parties are unable to carry out all or part of the agreed performance which is generally caused by natural and social events, and force majeure offers contract suspension and termination of the contract. Indonesia has implicitly implemented this hardship in the legal system by referring to the principle of justice.