Leges Privatae
Vol. 2 No. 1 (2025): JUNE-JOY

The Legal Protection for Third Parties in Confidential Agreements

Jaya, Alwi (Unknown)



Article Info

Publish Date
30 Jun 2025

Abstract

This study examines the legal position and protection of third parties affected by confidential agreements under Indonesian contract law. Rooted in the principle of privity of contract, the Indonesian Civil Code recognizes contractual rights and obligations only between the parties directly involved. However, in modern legal and business practices, confidential agreements such as non-disclosure agreements (NDAs), exclusivity contracts, and private arrangements often have unintended consequences for external parties. This normative legal research employs statutory, conceptual, and case approaches to critically analyze the limitations of current regulations and explore comparative models from other jurisdictions, such as the United Kingdom’s Contracts (Rights of Third Parties) Act 1999. The findings reveal a normative gap in Indonesian law that fails to account for the legitimate interests of third parties harmed by undisclosed contractual arrangements. The study recommends the development of a more inclusive legal framework through legislative reform and progressive judicial interpretation, ensuring fairness and legal certainty in contractual relationships involving broader societal impact.

Copyrights © 2025






Journal Info

Abbrev

JOY

Publisher

Subject

Law, Crime, Criminology & Criminal Justice Other

Description

Leges Privatae (LP) is a peer-reviewed, open access international journal that discusses politics of law in general and discuss discourses on the development of civil law and government policy from various perspectives. All submitted manuscripts will be reviewed by the editors and then evaluated by ...