dc.description.abstract | The title of the thesis was “The Standard of Implementing the Revocation of a Contract, Based on the Doctrine of Situation Abuse in Court’s Ruling.” In judicial practices, it is usually found that a contract is made unilaterally by using economic and psychological superiority so that another party cannot do anything. In the doctrine of Situation Abuse, a contract can be revoked. Since it has not been regulated in the Civil Code, judges make their decisions base on jurisprudence.
The research problems are how about the enabling principles for normalizing this doctrine into a law, how about the standards of judges’ decisions to revoke a contract containing situation abuse, and how about formalizing this doctrine as one of the requirements of new vitiated consent into a future law.
The conclusion was that, first, the principles which supported the normalization of the doctrines of situation abuse into laws, among others, are consensus principle (Article 1320, paragraph 1 of the Civil Code), the principle of freedom to enter into contracts and the principle of good faith (Article 1338 of the Civil Code), the principle of compliance/ morality (Article 1337 of the Civil Code), and the principle of justice (Article 1339 of the Civil Code). Secondly, the standard of judges’ legal consideration is the fulfillment of the element of abusing extraordinary situation of the combination of the abuse of extraordinary situation and the element of financial loss, unlawful act, feigning contract, sham contract, and not depending on only the financial loss. Although all elements of situation abuse has been fulfilled, the contract is considered valid, judges should be reasonable and just by punishing both parties without revoking the contract. Thirdly, formalizing the doctrine of situation abuse in the future should be regulated in a law (the Civil Code) in order to guarantee legal certainty, legal protection, and the uniformity of judges’ considerations.
It is recommended that judges reject the revocation of a contract based on situation abuse if it fulfills only the element of loss. Besides being guided by jurisprudence, judges should be reasonable and just in handing down a ruling. The Civil Code should be renewed by including the doctrine of situation abuse or inserting it into Article 1321 of the Civil Code, or making SEMA temporarily before the Civil Code is renewed. | en_US |