The Role of Contract Law in Improving Legal Certainty for Business Actors

Authors

  • Anak Agung Bagus Tri Arta Udayana University of Udayana, Bali, Indonesia
  • Made Aditya Pramana Putra University of Udayana, Bali, Indonesia.

DOI:

https://doi.org/10.38035/jlph.v5i3.1217

Keywords:

Contract Law, Legal Certainty, Business Actors

Abstract

Legal certainty is a crucial pillar in creating a conducive business climate, especially through contract law regulated by the Civil Code ( KUHPerdata ). This research employs a normative approach with an analysis of legislation and literature review to evaluate the role of contract law in enhancing legal certainty for business actors in Indonesia. Through descriptive qualitative analysis, it is found that the essential aspects supporting legal certainty include the requirements for valid contracts, implementation regulations, dispute resolution mechanisms, and the recognition of electronic contracts. However, challenges such as a lack of legal understanding among business actors, regulatory uncertainty, and an inefficient dispute resolution system still hinder the effective implementation of contract law. This study emphasizes the importance of education and training on contract law for business actors, particularly SMEs, as a strategic step to improve legal certainty.

References

Andriani, H. (2024). The Role of Contract Law in Foreign Direct Investment: Case Analysis in Developing Countries the Role of Contract Law in Foreign Direct Investment: an. JICN: Jurnal Intelek Dan Cendikiawan Nusantara, 1 (2), 1178.

Constitution Number 6 of 2023 concerning Determination Regulation Government Replacement Constitution Number 2 of 2022 concerning Create Work.

Gusriyani, M., Utari, YD, Ratiwi, & Yuliana. (2024). Legal Perspective on Business Agreements. Causa: Journal of Law and Citizenship, 3 (12), 25–35.

Heryanta, John Pieris, WSW (2024). The Role of Government in Strengthening Legal Certainty of E-Commerce in Increasing Economic Growth. Heryanta, John Pieris, Wiwik Sri Widiarty University, 8 (7), 1–9.

HS, S. (2021). Contract Law: Theory and Techniques of Contract Drafting. Sinar Grafika.

Ilmunir, D., Wahyudi, A., Ardjayeng, L., Law, F., Kadiri, U., & Perdagangan, T. (2024). THE IMPORTANCE OF LEGAL UNDERSTANDING IN TRANSACTIONS. Journal of Legal Transparency, 07 (02), 135–139.

Jason, F., & Tan, D. (2022). LEGAL CERTAINTY FOR FOREIGN INVESTORS IN RELATION TO THE UNCONSTITUTIONAL JOB CREATION LAW. UNES LAW REVIEW, 4 (3), 367–382.

Kesuma, D. (2023). Observing Legal Certainty for Business Actors After the Enactment of Law Number 6 of 2023 Concerning Job Creation (Ensuring Legal Certainty for Businessmen Law No. 6 of 2023 on Creation of Work). Journal of Law and Business (Selisik), 9 (1), 91–98. https://journal.univpancasila.ac.id/index.php/selisik/article/download/5220/2430

Mardjuki, S., & Yusuf, H. (2024). Increasing Life Security for the Community and Legal Certainty for Entrepreneurs through the Implementation of Commercial Law in. JICN: Jurnal Intelek Dan Cendikiawan Nusantara, 1 (3), 3917–3924.

Martinelli, I., Reinhart, F., Natalie, C., & Milianty, Y. (2023). Transparency and Legal Certainty in Roscoe Pound's Contract Theory. UNES LAW Review Journal, 6 (2), 4099–4107. https://review-unes.com/https://creativecommons.org/licenses/by/4.0/

Megawati, L., Wiharma, C., & Hasanudin, A. (2023). The Role of Blockchain Technology in Increasing Security and Legal Certainty in Contract Transactions in Indonesia. Mimbar Justitia Law Journal, 9 (2), 410. https://doi.org/10.35194/jhmj.v9i2.3856

Morris, KA, & Rasji. (2023). LEGAL REVIEW OF WORKERS' RIGHTS IN OUTSOURCING COMPANIES IN THE ASPECT OF LEGAL CERTAINTY PROTECTION. Jurnal Serina Sosial Humaniora, 1 (3), 170–181.

Rahmadi Indra Tektona, & Laoly, SR (2023). Legal Certainty of Digital Signatures on the Privyid Platform in Indonesia. Acta Diurnal Journal of Notary Law and PPAT-An, 6 (2), 245–253. https://doi.org/10.23920/acta.v6i2.1141

Salle. (2019). Contract Law: Theory and Practice. CV. Social Politic Genius.

Satrio, J. (1998). Contract Law, Contracts Born from Agreements, Book I. Citra Aditya Bakti, Bandung.

Sjaiful, M. (2021). Normative Problems of Guaranteeing Workers' Rights in Law Number 11 of 2020 Concerning Job Creation. Media Iuris, 4 (1), 37. https://doi.org/10.20473/mi.v4i1.22572

Weynanda, AP, Mulyana, A., Rering, PCM, Ruslina, E., & Gustini, DR (2023). Utilization of Commercial Law to Promote Public Welfare and Legal Certainty for Business Actors. Nusantara: Journal of Education, Arts, Sciences and Social Humanities, 1 (1), 1–17. https://doi.org/10.11111/nusantara.xxxxxxx

Downloads

Published

2025-01-31

How to Cite

Tri Arta Udayana, A. A. B., & Pramana Putra, M. A. (2025). The Role of Contract Law in Improving Legal Certainty for Business Actors. Journal of Law, Politic and Humanities, 5(3), 1861–1867. https://doi.org/10.38035/jlph.v5i3.1217

Issue

Vol. 5 No. 3 (2025): (JLPH) Journal of Law, Politic and Humanities

Section

Articles

License

Copyright (c) 2025 Anak Agung Bagus Tri Arta Udayana, Made Aditya Pramana Putra

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. The copyright on each article belongs to the author(s).
  2. The author acknowledges that the Journal of Law, Poliitic and Humanities (JLPH) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
  3. Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Journal of Law, Poliitic and Humanities (JLPH).