The Legal Status of the Parties to a Joint Operating Agreement (KSO) Based on the Principle of ‘Pacta Sunt Servanda’ (Case Study: Court Judgment No. 391/Pdt.G./2024/Pn. Jkt.Utr.)
DOI:
https://doi.org/10.38035/jlph.v6i6.3736Keywords:
Joint Operating Agreement, KSO, Pacta Sunt Servanda, Breach of Contract, Civil LawAbstract
An Operational Cooperation Agreement (KSO) is a form of unnamed contract (innominate contract) that has developed in accordance with the principle of freedom of contract as set out in the Civil Code. In practice, KSOs often give rise to disputes due to the failure of the parties to fulfil their rights and obligations. This study aims to analyse the legal status of the Operational Cooperation Agreement (KSO), the forms of breach of contract, and the legal consequences arising therefrom based on Judgment No. 391/Pdt.G./2024/PN Jkt.Utr. The study employs a normative legal method using a statutory approach, a conceptual approach, and a case-based approach. The legal materials used include primary, secondary, and tertiary sources, which were analysed qualitatively through deductive reasoning. The results of the study indicate that an Operational Cooperation Agreement (KSO) is legally binding in accordance with the provisions of Article 1338 of the Civil Code; consequently, the parties are obliged to fulfil the terms of the agreement in good faith. Breach of contract in this case occurred because one party failed to fulfil its agreed obligations, thereby causing loss to the other party. The court’s ruling confirms that a breach of the terms of a contract gives rise to legal liability in the form of an obligation to pay damages in accordance with the provisions of civil law. It is hoped that this research will contribute to the development of contract law, particularly with regard to the resolution of disputes arising from Production Sharing Agreements in Indonesia.
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