Conditional engagement in civil law: understanding, type, and case example

Have you ever made a new promise or agreement if a condition occurs in the future? Or even canceled when an event occurs in the future? Well, in civil law, this is called conditional engagement. Then, what is conditional engagement? This article will completely discuss the understanding, types, legal basis, examples, and legal implications of conditional engagement.

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Conditional alliance understanding

Conditional engagement is an engagement that is implemented or even the existence of its rights and obligations depend on a particular condition. This requirement refers to an event that is not certain to occur in the future. That is, all forms of obligations or rights in the engagement will only apply, or precisely canceled if the agreed conditions are truly fulfilled or not fulfilled.

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Type of Conditional Alliance

Based on the Civil Code (“Civil Code”) and Civil Law Doctrine, conditional engagement is divided into 2 (two), including:

1. Alliance under conditionsprerequisite)

Is an engagement that depends on an event that is still coming and which is still not necessarily going to occur or that depends on something that has happened but is not known by both parties.

2. Alliance under the terms of cancellation (resolutive condition)

This is an alliance with the condition that when fulfilled will stop the alliance and bring everything back to the country. Or in other words, the legal relationship between the alliance has existed since the beginning of the alliance, but it will end and deemed never to exist when the conditions determined are true -actually happen later.

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The legal basis for conditional engagement in the Civil Code

The legal basis governing the conditional engagement is listed in the Civil Code, namely:

1. Article 1253 Civil Code: Regulates the Understanding of Conditional Engagement
2. Article 1254 Civil Code: Regulates Legitimate Requirements in Conditional Engagement
3. Article 1255 – 1261 Civil Code: Regulates the engagement with the provisions of time
4. Article 1262 – 1264 Civil Code: Regulates tough requirements
5. Article 1265 – 1267 Civil Code: Regulates the Cancel Conditions and its relation to the default in the reciprocal agreement

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Examples of conditional engagement cases

Examples of conditional engagement in daily life are as follows:

1. Alliance with depressed conditions

A make an agreement with B to buy a B car if the credit filter A to one of the banks is approved. In this alliance, the sales and cellular sales agreement between A and B has not been met and will be applied when the bank’s credit approval submitted by A is met. On the other hand, if the credit is not liquid or not approved, then this sales and sales agreement will not occur or never be born.

2. Alliance with the condition of the cancellation

A make an agreement with C to rent a land owned by A to C, provided that the lease agreement will be canceled if A is dismissed from his work. In this engagement, C can immediately use land owned by A because the agreement has been in effect from the beginning. But if A is dismissed from his work, then this land lease agreement will automatically end and be considered canceled.

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Conditional Alliance vs Regular Alliance

After understanding what is conditional engagement, the types of conditional engagement, the legal basis for conditional engagement, to examples of the application of conditional engagement in daily life, the following is a difference between conditional engagement and ordinary engagement:

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Legal implications and practice in the contract

In Indonesian civil law, the existence of conditional engagement brings different legal implications and practices from ordinary engagers. The existence of a condition in this engagement becomes very important because it determines when the rights and obligations arising from the agreement between the parties will begin to apply or even end.

Legally, this can certainly cause initial uncertainty regarding the effectiveness of a contract until the requirement is met (in the case of tough conditions) or the end of the contract if the conditions occur (in the case of the Cancel Conditions).

In other words, the validity and appointment of the agreement depends very much on fulfilling or not fulfilling the conditions agreed upon in the engagement as stated in the agreed contract.

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(This article has been edited by the perqara editorial team)

Legal basis

1. Civil Code (“Civil Code”)

Reference

1. Subekti, Agreement lawJakarta: InterMasa, 2005.