General Principles -formation of valid agreement

The Article 1320 of the Indonesian Civil Code provides that an agreement is enforceable as long as it has the following elements:

 

(i) consent of the parties;

(ii) capacity to contract;

(iii) a defined object; and

(iv) a permissible cause.

 

Generally, contracts are given effect to if these four basic elements are fulfilled and the Indonesian courts seldom interfere parties in trying to give effect to the terms of the agreement subject to the discussion below.
Consent of parties usually require both party to indicate this with their signature, ideally notarized.
Common law concept of "consideration" is usually not a requirement to support an enforceable agreement.




Capacity excludes minor defined as someone under 21 years.