The principle of good faith is one of the fundamental principles of contract law in Indonesia. This principle is regulated in Article 1338 paragraph (3) of the Civil Code, which emphasizes that an agreement must be executed in good faith. This provision affirms that each party is bound to execute the agreement in accordance with norms of propriety and justice, not solely based on what is written in the contract. Contract law in Indonesia recognizes a fundamental principle that underlies every contractual relationship, namely the principle of freedom of contract, as stipulated in Article 1338 paragraph (1) of the Civil Code. However, freedom of contract is not absolute; rather, it is limited by the existence of the principle of good faith, as affirmed in Article 1338 paragraph (3) of the Civil Code. This article states that an agreement must be executed in good faith. (Ontology) This research method uses a normative juridical approach. The sources and types of data used are primary and secondary data. Data collection through library research. Data processing was carried out by selecting and examining the obtained data for completeness, as well as systematically classifying or grouping the data. The data analysis used was qualitative legal. Soerjono Soekanto defines normative legal research as "legal research conducted solely by examining library materials or secondary data." (Epistemology) The results of the study indicate that the implementation of the principle of good faith in mortgage agreements is not yet fully consistent, particularly when disputes arise regarding the execution of mortgage rights, which often result in injustice for debtors. Therefore, it is necessary to strengthen the understanding of the parties and ensure consistency among law enforcement officials in applying the principle of good faith, so that mortgage agreements can function not only as instruments of legal certainty but also as a means of justice and protection for all parties involved. (Epistemology) The recommendation in this study is the need for clarification in the implementing regulations of the Mortgage Law regarding the obligations of parties to execute agreements in good faith, including transparent and proportional execution auction procedures. Regulations should establish a mechanism for independent assessment of mortgaged assets prior to execution to prevent below-market sales practices that are detrimental to debtors. (Axiology)
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