The Principle Of Free Contracted by: wa'idatul hasanah (11220009)

by: wa'idatul hasanah (11220009)

The Principle Of Free Contracted

In Islamic law there are principles of a treaty and the principle effect on status contract. When this principle is not met, it will result in canceled or invalidity of the contract is made. As one of these principles is the principle of free contracting. This principle is the basic principle of a contract or agreement. The parties which do it have the freedom to make a contract or agreement, both in terms of material / content of the agreement, determine the implementation and other requirements, an agreement with anyone, nor form of agreement (written or oral) and includes setting means settlement where the dispute.

 The principle of free contracted is governed by Article 1338 paragraph (1) Civil Code (KUHP), which reads: "all treaties made legally valid as the law for those who make it". Judging from the contents of the article, the principle of freedom of contract provides the freedom for the parties to:

1. Make or not make an agreement
2. Entered into an agreement with anyone
3. Determine the content of the agreement, implementation, and requirements

Based on the principle of free contract, each person has the freedom to have an agreement with the contents of which, however, is not contrary to applicable laws and regulations, public order and good morals.

References:
Djamil, Fathurrahman. 2012. Application of the Law of Treaties In Transactions In Islamic Financial Institutions. Jakarta: Sinar Grafika

H.S, Salim. 2003. Innominaat Contract Law Developments In Indonesia. Jakarta: Sinar Grafika