The Role of the Principle of Balance in Agreements: Contract Validity and Annulment Under Indonesian Civil Law

Santie Marlina  Santoso; Siti Parwitri  Listiana; Chrispian  Lorendra; Yohanes Winarto  Adhinugroho; Yosephine Sri Lestari  Prasetyo; Takwim  Azami

doi:10.54518/rh.5.2.2025.141-150

Authors

Santie Marlina Santoso Universitas Wahid Hasyim, Indonesia
Siti Parwitri Listiana Universitas Wahid Hasyim, Indonesia
Chrispian Lorendra Universitas Wahid Hasyim, Indonesia
Yohanes Winarto Adhinugroho Universitas Wahid Hasyim, Indonesia
Yosephine Sri Lestari Prasetyo Universitas Wahid Hasyim, Indonesia
Takwim Azami Universitas Wahid Hasyim, Indonesia

DOI:

https://doi.org/10.54518/rh.5.2.2025.141-150

Keywords:

Contract Annulment, Contract Validity, Fairness, Principle of BalanceIndonesian Civil Law

Abstract

The principle of balance in agreements is essential to ensuring fairness in the formation and enforcement of contracts under Indonesian Civil Law. This principle dictates that the rights and obligations of both parties must be proportional, preventing any party from dominating the other. Although not explicitly mentioned in Article 1320 of the Indonesian Civil Code, the principle of balance is crucial for ensuring contracts reflect the genuine interests of both parties and avoid unfair advantages. It also intersects with the concepts of consensualism and freedom of contract, which allow parties to negotiate terms within legal and moral boundaries. However, abuses such as "take it or leave it" clauses can create significant imbalances, leading to unfair contracts. The research highlights the importance of this principle in preventing undue influence and exploitation, and it suggests the need for its formal inclusion in Indonesian Civil Law, either through a Supreme Court Regulation as a short-term solution or through the revision of the Civil Code in the long term. The principle of balance serves as a foundation for promoting equitable and just contractual relationships in Indonesia.

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