A Joint Operation (Kerja Sama Operasi or KSO) is a form of civil partnership based on an innominate agreement, temporary in nature, and are able to act either as natural persons or as legal organizations. A KSO is a business entity, not a legal entity, because it constitutes a civil partnership, with liability resting on the parties who enter into the agreement.Default (wanprestasi) refers to breach of contract or failure to fulfill obligations by the parties to the agreement as stipulated therein. Any action—whether giving, performing, or refraining—that results in a default may cause responsibilities like paying damages, nullifying the agreement, or making the other party perform. Considering that a KSO is a business entity rather than a legal entity, liability rests with the subjects who enter into the KSO agreement. Therefore, if default occurs among the parties to the KSO agreement, liability toward third parties does not fall upon the KSO business entity itself but shall be divided equally among the parties to the contract or as otherwise provided for in the agreement.
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