Awang Long Law Review
Vol. 8 No. 1 (2025): Awang Long Law Review

BREACH OF CONTRACT IN COMMERCIAL GUARANTEE RELATIONSHIPS: AN ANALYSIS OF DISTRICT COURT DECISION NO. 127/PDT.G/2022/PN JKT.PST

Santoso, Angeline Wellvy (Unknown)
Hadiati, Mia (Unknown)



Article Info

Publish Date
23 Nov 2025

Abstract

This research examines the legal construction of default in commercial guarantee relationships, focusing on the analysis of District Court Decision No. 127/Pdt.G/2022/PN Jkt.Pst. The background arises from the growing complexity of modern business contracts that position guarantors as equivalent to primary debtors, thereby shifting the legal function of guarantees. This research seeks to examine the legal aspects basis of guarantor liability in cases of debtor default and to assess the judicial interpretation trends regarding contractual obligations. The research applies a normative-juridical approach by reviewing primary legal materials, including primary sources like statutes and judicial rulings, along with secondary materials such as legal literature and journals scholarly. The findings indicate that the court adopted a progressive interpretation of the pacta sunt servanda and good faith principles as the basis for imposing liability on guarantors. The decision reflects a paradigm shift from a formalistic to a contextual and proportional approach that prioritizes substantive justice over mere textual certainty. The study concludes that the standardization of commercial guarantee contracts and consistent jurisprudence are essential to ensure balance between creditor protection and guarantor fairness in commercial transactions.

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Journal Info

Abbrev

awl

Publisher

Subject

Law, Crime, Criminology & Criminal Justice

Description

Awang Long Law Review known as the ALLRev launched on November 1, 2018 and inaugurated formally by Chairman of the Awang Long School of Law. Besides "The Juris" Journal of Legal Sciences, Awang Long Law Review (ALLRev) is the official journal of the Awang Long School of Law published biannually (May ...