Are Online Agreements Legally-Valid?

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has talk about "Contoh Surat Eksepsi Pidana Kasus Narkoba", "Memahami Perbedaan Nota Kesepahaman (M.o.U) Dengan Perjanjian", "Contoh Perjanjian Kerjasama Operasional (Joint Operational) Batubara", "These 5 Types of Online Fraud You Should Avoid" you may read also "I Have a Contract Whose Goods Have Not Been Delivered, How Do I Sue Under Indonesian Law?" and on this occasion we will discuss about 'Are online agreements legally-valid?'

Legal Term  

In the digital era of industry 4.0 as it is today, many people are starting to use technology and the internet to support their business. This rapid technological development has also succeeded in creating a new information infrastructure that makes all work more efficient with the help of technology. You can see from the number of new startups, ranging from transportation startups, food delivery service providers, to now there are startups that offer online contract making services. The term online contract is used by: Edmon Makarim which means the same as an electronic contract, namely a legal bond or relationship that is carried out electronically that combines a network of computer-based information systems with systems.[1]

Validity Question

Legality and validity arising from transactions between business actors are important in the implementation of electronic transactions. This is because electronic transactions can be carried out without having to meet in person but only using long-distance communication through available electronic systems. But what is the status of the validity of the sale and purchase agreement made via the internet (online) or electronic transactions (e-commerce).[2]

According to the author, the validity of this online contract is questionable because with the presence of massive information technology as it is today, face-to-face contact is no longer a necessity. In other words, this situation contradicts the previous situation which presupposes that every agreement is made face-to-face. But is such an agreement legally valid? We'll look at it below. 

Are Online Agreements Legally Valid?

The validity of a contract/agreement must be measured by the fulfillment of the conditions previously agreed upon by the parties (expression of will). Based on the legal terms of the agreement described in Article 1320 of the Civil Code, an agreement can be said to be valid if it is carried out by:[3]

• Based on the agreement between the parties who bind themselves;
• The ability to enter into an engagement;
• A certain thing; and
• A lawful cause or cause.

This is the legal condition of the agreement according to the Civil Code. No less and no more. The legal terms of the agreement must be measured to the provisions referred as above, both conventional and electronic agreements. As far as online agreement fulfill the article 1320 of the Civil Code, then its legally-valid.

About Electronic Transaction Evidence

Referring to Law Number 11 of 2008 concerning Information and Electronic Transactions as amended by Law Number 19 of 2016 concerning Amendments to Law Number 11 of 2008 concerning Information and Electronic Transactions, Articles 5 to 12 are explained that Electronic Information and/or Electronic Documents and/or their printed results are valid legal evidence, which is an extension of legal evidence in accordance with the applicable procedural law in Indonesia.[4] The provisions in Article 1320 of the Civil Code and the ITE Law (Information and Electronic Transactions) and its amendments emphasize that agreements made electronically have the same power as agreements signed by the parties directly with the direct presence of the parties. And if you have any legal issue with your business agreement, contact us, feel free in 24 hour, we will be happy to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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References:

1. "Kontrak Online Apakah Sah Menurut Hukum Di Indonesia", libera.id., Diakses pada tanggal 8 April 2022, https://libera.id/blogs/kontrak-online-apakah-sah-menurut-hukum-di-indonesia/

2. "Perjanjian Jual Beli Online Bagi Orang Yang Masih Dibawah Umur, Apakah Sah?", smartlegalacademy.id., Diakses pada tanggal 8 April 2022, https://smartlegalacademy.id/perjanjian-jual-beli-online-bagi-orang-yang-masih-dibawah-umur-apakah-sah/

3. Ibid.

4. Undang-Undang Nomor 11 Tahun 2008 tentang Informasi dan Transaksi Elektronik Jo. Undang-Undang Nomor 19 Tahun 2016 tentang Perubahan Atas Undang-Undang Nomor 11 Tahun 2008 tentang Informasi dan Transaksi Elektronik.