The Legal Consequences of Default in the Oral Lease Agreement based on Indonesia Private Law (Decision Study of Supreme Court No. 2368K/Pdt/2019)

Marsella Condro, Mella Ismelina Farma Rahayu
2022 Advances in Social Science, Education and Humanities Research   unpublished
An oral lease agreement is a lease agreement made by the parties in an oral form without a written agreement being the instrument they agree on. The risk of this agreement came in many forms, one of them is when either one of the parties cannot fulfil one of the clauses that they had agreed on. The research was conducted in order to determine what the legal consequences is for parties who default on the implementation of the oral lease agreement to rent a warehouse and whether the
more » ... of the oral lease agreement is in accordance with the laws and order based on the supreme court decision. In this case study, the district court decision and the high court decision states that the oral lease agreement is not valid because of the lack of proof and evidence. But in the Supreme Court decision, this oral lease agreement declared to be a valid agreement and the defendant is declared in default. This research uses a normative juridical research with a descriptive analysis and data collection tools of literature and observation research. The results shows that the legal consequences of the oral lease agreement are that the defendant is in default. And from the Supreme Court decision it is known that the implementation of the oral lease agreement is valid and in accordance with the prevailing laws and regulations in Indonesia, whereas the lease agreement which is made orally, is basically not prohibited based on the principle of freedom of contract.
doi:10.2991/assehr.k.220404.127 fatcat:llrcjswm3rgchovpqf3zsh4i2i