<![CDATA[An agreement is a legal instrument that regulates the rights and obligations of the parties and serves as the basis for implementing a legal relationship. Contractual clauses that are not drafted carefully may create uncertainty concerning performance, time limits, responsibilities, and legal consequences in the event of breach of contract. This research aims to analyze the application of the prudential principle in drafting contractual clauses and the legal consequences of failing to apply such principle in anticipating the risk of breach of contract. This research employs normative legal research using a statutory approach and a conceptual approach. The results indicate that the prudential principle can be implemented by verifying the identity and authority of the parties, ensuring the fulfillment of the validity requirements of an agreement, and formulating clear clauses concerning the subject matter and performance, time limits, breach of contract, compensation, penalties, force majeure, termination, and dispute resolution. Failure to apply the prudential principle may result in ambiguous contractual provisions, uncertainty regarding the fulfillment of obligations, difficulties in determining a breach of contract, and an increased potential for disputes and complexity in enforcing the parties’ rights.]]>
Copyrights © 2026
