Contract in Indonesia (Agreement Between the Parties)
C ontract in Indonesia governed by Civil Law (European Continental Law):
The requirements for a contract in Indonesia (most commonly known as "Perjanjian") can be found in Article 1320 of the Indonesian Civil Code, which is adopted from the Netherland Civil Code.
According to Article 1320, contracts in Indonesia must fulfill four elements. These are:
1. Agreement;
2. Capacity;
3. The object of the contract must exist and specific;
4. Intention to obey the law
Agreement
To constitute an agreement, there must be an offer and an acceptance of that offer. This is expressed in the formula
Offer + Acceptance = AGREEMENT
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