Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law
Abstract Penalty clauses in civil contracts serve as a preventive mechanism against breach of contract and as a legal protection tool for the aggrieved party. However, the Indonesian Civil Code (KUHPerdata) does not explicitly regulate such clauses, resulting in legal uncertainty and inconsisten...
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| Format: | Article |
| Language: | Arabic |
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Yayasan Pendidikan Islam dan Multikultural
2025-06-01
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| Series: | International Journal of Islamic Education, Research and Multiculturalism |
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| Online Access: | https://journal.yaspim.org/index.php/IJIERM/article/view/540 |
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| author | Lely Sulthoniah Djumikasih Yenny Eta Widyanti |
| author_facet | Lely Sulthoniah Djumikasih Yenny Eta Widyanti |
| author_sort | Lely Sulthoniah |
| collection | DOAJ |
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Abstract
Penalty clauses in civil contracts serve as a preventive mechanism against breach of contract and as a legal protection tool for the aggrieved party. However, the Indonesian Civil Code (KUHPerdata) does not explicitly regulate such clauses, resulting in legal uncertainty and inconsistent judicial practices. This study aims to comparatively analyze the regulation and implementation of penalty clauses in Indonesia, the United Kingdom (via the concept of liquidated damages), and Germany (through Strafklauseln). Employing normative, conceptual, case study, and comparative approaches, the findings reveal that Indonesia’s legal framework remains weak and heavily reliant on judicial discretion, in contrast to the more structured and proportionate approaches found in the UK and Germany. The study recommends a reformulation of Indonesia’s legal framework governing penalty clauses to strengthen legal certainty and ensure substantive justice. The novelty of this research lies in its cross-system legal analysis and emphasis on the need for contractual justice reform in Indonesian civil law.
Keywords: Penalty Clause, Breach of Contract, Justice, Contract Law, Legal Comparison
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| format | Article |
| id | doaj-art-67f3b2d302e847c784c1e4b9843bafe8 |
| institution | Kabale University |
| issn | 2656-3630 2722-7049 |
| language | Arabic |
| publishDate | 2025-06-01 |
| publisher | Yayasan Pendidikan Islam dan Multikultural |
| record_format | Article |
| series | International Journal of Islamic Education, Research and Multiculturalism |
| spelling | doaj-art-67f3b2d302e847c784c1e4b9843bafe82025-08-20T03:47:21ZaraYayasan Pendidikan Islam dan MultikulturalInternational Journal of Islamic Education, Research and Multiculturalism2656-36302722-70492025-06-017210.47006/ijierm.v7i2.540Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian LawLely Sulthoniah0Djumikasih1Yenny Eta Widyanti2Universitas BrawijayaUniversitas BrawijayaUniversitas Brawijaya Abstract Penalty clauses in civil contracts serve as a preventive mechanism against breach of contract and as a legal protection tool for the aggrieved party. However, the Indonesian Civil Code (KUHPerdata) does not explicitly regulate such clauses, resulting in legal uncertainty and inconsistent judicial practices. This study aims to comparatively analyze the regulation and implementation of penalty clauses in Indonesia, the United Kingdom (via the concept of liquidated damages), and Germany (through Strafklauseln). Employing normative, conceptual, case study, and comparative approaches, the findings reveal that Indonesia’s legal framework remains weak and heavily reliant on judicial discretion, in contrast to the more structured and proportionate approaches found in the UK and Germany. The study recommends a reformulation of Indonesia’s legal framework governing penalty clauses to strengthen legal certainty and ensure substantive justice. The novelty of this research lies in its cross-system legal analysis and emphasis on the need for contractual justice reform in Indonesian civil law. Keywords: Penalty Clause, Breach of Contract, Justice, Contract Law, Legal Comparison https://journal.yaspim.org/index.php/IJIERM/article/view/540Penalty ClauseBreach of ContractJusticeContract LawLegal Comparison |
| spellingShingle | Lely Sulthoniah Djumikasih Yenny Eta Widyanti Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law International Journal of Islamic Education, Research and Multiculturalism Penalty Clause Breach of Contract Justice Contract Law Legal Comparison |
| title | Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law |
| title_full | Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law |
| title_fullStr | Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law |
| title_full_unstemmed | Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law |
| title_short | Comparative Analysis of Penalty Clauses in Civil Contracts: Enhancing Legal Certainty and Substantive Justice in Indonesian Law |
| title_sort | comparative analysis of penalty clauses in civil contracts enhancing legal certainty and substantive justice in indonesian law |
| topic | Penalty Clause Breach of Contract Justice Contract Law Legal Comparison |
| url | https://journal.yaspim.org/index.php/IJIERM/article/view/540 |
| work_keys_str_mv | AT lelysulthoniah comparativeanalysisofpenaltyclausesincivilcontractsenhancinglegalcertaintyandsubstantivejusticeinindonesianlaw AT djumikasih comparativeanalysisofpenaltyclausesincivilcontractsenhancinglegalcertaintyandsubstantivejusticeinindonesianlaw AT yennyetawidyanti comparativeanalysisofpenaltyclausesincivilcontractsenhancinglegalcertaintyandsubstantivejusticeinindonesianlaw |