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Juridical Review The Implementation of Oral Agreement is 
associated with the Law of Treaties and Law Number 8 

Year 1999 of Consumer Protection 

Dian Eka Pusvita Azis, Nurhaedah 

Faculty of Law, Universitas Muslim Indonesia 

dianekapusvita.azis@umi.ac.id 

ABSTRACT 

The Covenant under Article 1313 of the Civil Code is an act by which one or more 

persons bind themselves to one or more persons. Unconsciously, verbal agreements are 

often made in social life and often the parties who make oral agreements reject the 

existence of the agreement. This research is a normative descriptive juridical research. 

Based on this study it can be concluded that the oral agreement is legal and has the legal 

power to declare a person to default, but if the oral agreement is rejected/not recognized 

by the accused, the oral agreement has no legal power to declare the person to default, 

there, depending on the evidence from the parties. but verbal agreements that have been 

rejected / unrecognized may regain their legal power if it can be proven that an oral 

agreement exists or has been made. Based on Law no 8 of Consumer Protection 

Consumer law is defined as all legal principles and rules governing relationships and 

problems between various parties or each other in relation to goods and / or services in 

the aspects of life. Based on Article 163 of HIR and Article 1865 of the Civil Code, any 

party that argues for right, then the business actor must prove it. So if the consumer 

demands his right to the business that endangers it, then the consumer must prove it. 

Keywords: juridical review, oral agreement, legal agreement, consumer protection act 

 

INTRODUCTION 

All aspects of our lives are closely related to the covenant. Similarly, in everyday 

activities are always associated with agreements, contracts, agreements both oral and 

written. In making an agreement it is necessary to be prudent, moreover the agreement is 

made unilaterally orally without any written contract. According to Article 1233 of the Civil 

Code which reads "Each and every engagement is born either because of the consent, 

both because of the law" means the source of the engagement is the agreement and the 

later Article 1313 Civil Code of contents "A covenant is an action by which one person or 

more binding himself to one or more people "of the two articles are open systems. This is 

closely related to the formulation of Article 1338 of the Civil Code which contains "All 

legally-made agreements act as laws for those who make them." With this principle of 

freedom of contract provides an opportunity for a person to enter into any agreement so 

long as it is not contrary to the law, laws, public order and morals. However, in the 

execution of the agreement must comply with the provisions which become the condition 

of the occurrence of a treaty contained in article 1320 namely, agreement, skills, a certain 

matter and the lawful cause. 

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Against the form of the exercise of the agreement in the oral form declared 

unilaterally by the party that offers the agreement inevitably the interested party in this 

case the second party is pressed with the interest of agreeing the contents of the 

agreement. Not to mention the possibilities that occur in the future that is wanprestasi 

with large losses so that the court to face, and what if the party who did the default is 

negligent, broken promise, do not acknowledge or deny having oral agreement Based on 

the background and problems that have been described above so that it is necessary to 

examine the extent to which the legal protection of the oral agreement if the party who did 

wanprestasi deny the oral agreement is linked the Law of Contract and Law No. 8 of 1999 

on Consumer Protection. 

 

METHOD 

This research is descriptive normative juridical research. This study uses primary 

legal material sources consisting of laws and regulations bound by research. Sources of 

secondary legal materials in the form of materials or related materials and explain the 

problem, and the source of tertiary legal materials are materials that provide information 

about primary legal materials and secondary legal materials related to the research. 

 

ANALYSIS AND DISCUSSION 

The implementation of the Oral Agreement is related to the Law of Treaties and 

Law Number 8 Year 1999 on Consumer Protection 

The Agreement issues a commitment between the two persons who make it, in 

the form of an agreement may be a series of words containing promises or abilities 

spoken or written1  

The agreement may be made by anyone, between one person and another, or 

between an individual and a legal entity, this is because the agreement embraces the 

principle of freedom of contract. The agreement is a promise of two or more parties who 

make an agreement, so as not to close the possibility of those promises are not met. The 

accomplishment of a treaty is the exercise of the things that have been agreed upon or 

that have been written in an agreement by both parties who have committed themselves 

to it. The counterpart of the achievement is a default, that is, the non-performance of an 

achievement or a pledge or obligation as may be imposed by the agreement on certain 

parties mentioned in the agreement, which constitutes a deflection of the exercise of the 

agreement, resulting in a loss caused by a mistake by one or the parties2  

 
1 Subekti, R.  1996: hal 1. Law of Agreement. Jakarta: Intermas. 
2 Munir Fuady. 2001 hal 87. Contract Law (From a Business Law Perspective), Second Book. Bandung: PT. 
Citra Aditya Bakti. 

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The agreement can be done either in written form or in an oral way, and not 

infrequently encountered in silent agreement. Oral agreements occur a lot in social life, 

and are often unconscious but there has been agreement, for example in shopping 

activities in stores, in the markets for daily needs, accounts payable with friends, and 

others. It can be said that oral agreements are often found in simple agreements, in the 

sense that they are not complicated in legal relationships and also do not cause great 

harm to the parties in case of default. But what matters is what if oral agreements are 

used on agreements that can cause major losses to the parties in the event of default. 

Moreover, when prosecuted in the Court, the alleged defendant undertakes the defense 

by not admitting or denying the oral agreement. 

Making an agreement is basically not tied to a particular form. The Civil Code 

does not mention systematically the nature of the agreement. Each Contracting Party 

shall have the freedom to make the Agreement, in the sense that it is free to make the 

agreement orally or in writing. The principle of freedom of contract is a principle which 

gives freedom to the parties to.3  

a. Making or not making agreements; 

b. Make an agreement with anyone; 

c. Determine the contents of the agreement, its implementation, and its terms; and 

d. Determining the form of the agreement, ie written or oral. 

At present, for certain treaties, there are laws that determine the covenant 

making in written form in the authentic deed, as follows.4: 

a. The grant agreement must be written in a notarial deed, except the land rights 

grant agreement (vide Article 1682 Civil Code); 

b. The power granting agreement for installing a mortgage on a vessel shall be in 

writing in a notarial deed (vide Article 1171); 

c. Agreement of transfer of receivables secured by mortgages shall be written in 

notarial deed (vide Article 1172 Civil Code); 

d. Subrogation agreement must be written in notarial deed (vide 1401 sub 2 Civil 

Code); 

e. Transitional agreements (especially sale and purchase) of land rights, except 

through auctions, for registered lands must be in writing in the deed of the land 

deed (vide Article 37 of Government Regulation No. 24/1997); 

 
3 Salim H.S. 2003: hal 9. Introduction to Written Civil Law (BW), SinarGrafika. 
4 Muhammad Syaifuddin.  2012. Contract Law: Understanding Contracts in Perspective Philosophy, Theory, 
Dogmatics and Legal Practice. Bandung: C V. MandarMaju. 

 

 

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f. Transitional agreements (especially sale and purchase agreements and grants) 

of ownership rights over the land of apartment units, except through auctions, 

shall be in writing in the deed of the land deed (vide Article 37 of Government 

Regulation Number 24 Year 1997); 

g. The agreement on the transfer of title to land or property rights of the apartment 

units with the auction must be written in the deed of the land deed (vide Article 41 

of Government Regulation Number 24 Year 1997); 

h. The power granting agreement imposing the mortgage must be written in the 

deed of the land deed (vide Article 15 paragraph (1) of Law No. 4 of 1996); 

i. The mortgage guarantee agreement must be in writing in the deed of the land 

deed (vide Article 10 paragraph (2) of Law Number 4 Year 1996); 

j. The fiduciary guarantee agreement must be in writing or notarial deed (vide 

Article 5 paragraph (1) of Law Number 42 Year 1999); 

k. The Firm Establishment Agreement shall be in writing in a notarial deed (vide 

Article 22 of the Commercial Code); 

l. The establishment agreement of the cooperative shall be written in the deed of 

the official deed of the cooperative certificate (vide Article 7 of Law Number 25 

Year 1992); 

m. The founding foundation agreement must be in written form in notarial deed (vide 

Article 9 paragraph (2) of Law Number 16 Year 2001); and 

n. The agreement of the incorporation of a limited liability company shall be written 

in a notarial deed (vide Article 7 of Law Number 40 Year 2007). 

The treaty prescribed by the law shall be applied as it shall, because if it is not 

applied, the legal consequences shall be unlawful treaties, thus null and void, and not 

giving rise to the treaty (the agreement is considered never existed) (Muhammad 

Syaifuddin, 2012: 147). Oral agreements are not applicable in the treaties established by 

the law, in other words, as long as no law governing a treaty must be in writing, the oral 

agreement is still valid as a treaty binding on the parties that make it. 

Unlawful agreements are lawful to the extent that they comply with the provisions 

of the Criminal Code Article 1320 on the terms of the validity of an agreement. However, 

this unwritten agreement will face difficulties in terms of proof of the lawsuit filed by the 

court when the defendant does not recognize the existence of the agreement before the 

judge (Article 1927 Civil Code "An oral verdict given outside the court can not be used for 

verification, except in the case of verification with witnesses allowed. "). The matter of 

recognition which can be made as a proof of this can be seen in the Civil Code of Article 

1923 s / d Article 1928. Besides the absence of recognition from the party being sued, the 

obstacles that may be faced are the witnesses (more than one person) who hear and see 

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immediately when the agreement is made (Article 1905 of the Civil Code "The description 

of a witness only without other means of verification, in the Court should not be trusted"). 

The matter of proof with this witness is contained in Article 1906 s / d Article 1912 Civil 

Code. On the whole of this proof we can see in the fourth (fourth) Book of the Civil Code 

of Evidence and Expiration, namely 1) Proof with Tuliasan, 2) Proof with witnesses, 3) 

Proof with Comprehension, 4) Proof with Recognition and 5) Oath before the Judge. 

In the settlement of a breach of acquisition, please note first whether the 

agreement made by the parties is legitimate or unlawful because it binds or does not bind 

it an agreement to the parties making it dependent on the legitimate or unlawful 

agreement made by the parties. Article 1338 Paragraph (1) of the Civil Code, reads "All 

legally-made agreements act as laws for those who make them". The validity or non-

validity of an agreement can be ensured by testing it using a legal instrument. The terms 

of the validity of an agreement are set forth in Book III of the Civil Code. Article 1320 of 

the Civil Code is the principal legal instrument to examine the validity of a treaty made by 

the parties, since that article determines the existence of 4 (four) conditions which must 

be fulfilled for the validity of an agreement, namely: 

a. Agree to those who commit themselves; 

b. Ability to make a commitment; 

c. A certain thing; 

d. A lawful cause. 

Article 1320 of the Civil Code concerning the terms of the validity of the treaty, 

does not govern the form of a treaty, so in making the treaty, the public is freed to 

determine its form. Making a verbal agreement remains valid, as long as it meets the 

requirements of the validity of the agreement set forth in Article 1320.Oral agreements 

are also valid as long as there is no law that determines that the agreement to be made 

must be in writing. Based on such description, the oral agreement also has the legal 

power to bind the parties making it, so that in case of default in the oral agreement, the 

oral agreement can be used as a basis to declare a person to default. 

Unconsciously in social life, oral agreements are often done. Oral agreements 

are agreements made by parties solely by oral or mutual agreement of the parties. Oral 

agreements are often found in simple agreements, in the sense that they are not 

complicated in legal relationships and also do not cause great harm to the parties in the 

event of default. Unlike written agreements, oral agreements do not use the deed. Written 

agreements may be made in a deed under the hand and may be made also in an 

authentic deed. Sufficiently risky if verbal agreements are used in treaties which can 

cause substantial harm to the parties in the event of default, since the oral agreement 

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does not use a written deed that can guarantee an agreement if either party denies or 

has not concluded the agreement. 

The oral agreement in it contains a promise that expresses the declared will and 

is considered a constitutive element of the binding power of the covenant. A new 

agreement is formed when there is an encounter or a match between the promises of one 

party to the other.5 In an agreement it should be seen first whether there is an encounter 

or agreement between the promises of one party to another, which in this case is 

included in the terms of the validity of the agreement in Article 1320 of the Civil Code 

concerning their binding agreements. The agreement in the oral form, means the 

submission of what is desired and requested by the party who offers to the receiving 

party. The promise, though expressed verbally and expressed in words and deeds, is a 

potential factor, the point of what is actually desired in order to affirm certain legal 

relations of the covenant.6  

Article 1320 of the Civil Code concerning the terms of the validity of the 

agreement is very important to be taken into consideration, because in deciding upon a 

breach of wanprestasi which is first seen is a valid or invalid agreement. If the agreement 

is invalid then a person alleged to have committed a non-breach can not be declared to 

have defaulted. 

This is reinforced by the Judge considering Article 1234 Civil Code which states 

"each engagement is to give something, to do something, or to do nothing". Persons who 

do not engage in an engagement agreed upon in an agreement may be deemed to have 

committed a default. The relationship between the agreement and the engagement is that 

the agreement has a legal effect that causes the engagement. The Agreement is the 

source of the law of engagement other than any other legal source. Engagement is a 

legal relationship in the abstract sense, whereas the covenant is a legal act that creates 

concrete rights and obligations in the legal relationship.7 Under the terms of the terms of 

the validity of the agreement, there is no requirement in Article 1320 of the Civil Code 

which requires that an agreement be made in writing. In other words, an Orally Created 

Agreement is also legally binding for the parties making it, Pacta Sun Servanda (vide: 

Article 1338 Civil Code. However, in the process of establishing a civil case, the usual 

evidence used by the argumentating party (Vide Article 163 HIR) is a letter proof. This is 

because in a civic relationship, a letter / deed is intentionally made with the intention to 

 
5 Muhammad Syaifuddin. 2012 hal 137. Contract Law: Understanding Contracts in Perspective Philosophy, 
Theory, Dogmatics and Legal Practice. Bandung: C V. MandarMaju. 
6 Ibid, hlm.138. 
7 Ibid, hlm.25. 

 

 

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facilitate the process of proof, if in the future there is a civil dispute between the parties 

concerned. In this case, I will take the example of the debt agreement orally. 

In the case of an agreement of oral debt, then other evidence instruments other 

than letter proof (vide: Article 1866 Civil Code and Article 164 HIR) can be applied. 

Therefore, if a party (Plaintiff) wishes to postulate the existence of an agreement of oral 

debts to the Court, the Plaintiff may file a witness evidence which may explain the 

agreement of the oral debts. 

In the event that a Plaintiff filed a witness to corroborate the argument on the 

existence of an agreement of oral debt, it is known the principle of Unus Testis Nullus 

Testis, affirmed in Article 1905 of the Civil Code as follows: 

 "The description of a witness only, without any other evidence, before the Court 

should not be trusted" 

This means that a witness is not sufficient to prove an event or a covenant, since there is 

a minimum amount of proof in filing witness evidence, at least two witnesses, or one 

witnesses accompanied by other evidence, for example the recognition of the opposing 

party make the agreement (Vide: Article 176 HIR) or in the case of any suspicion (Article 

173 HIR), for example, there is already some debt paid to the Plaintiff. 

An agreement of any kind must be an engagement therein, since the covenant is 

the source of the engagement. Giving something is an act of surrendering ownership or 

by certain measures, surrendering from the enjoyment of the property.8  Article 1238 of 

the Civil Code states "the debtor is negligent, if he by warrant or by a similar deed has 

been declared negligent, or for his own engagement, is if it establishes that the debtor 

shall be deemed negligent by the passage of the prescribed time". A negligent statement 

is a legal remedy in which the creditor notifies, reprimands, and warns the debtor when at 

the latest it is obligated to fulfill the performance and when that time is exceeded, the 

debtor is negligent.9  Certain circumstances to prove a default debtor are not required 

negligent statements. Certain circumstances, for example, namely.10   

a. To ensure achievement is a fatal grace period; 

b. The debtor rejects fulfillment; 

c. The debtor admits his negligence; 

d. Fulfillment of achievements is not possible; 

e. Fulfillment is no longer licensed; and 

 
8 (Mariam DarusBadrulzaman. 2015. The Law of Alliance in the Third Book Civil Code. Bandung: PT. C itra 
Aditya Bakti. 
9 Ibid. 
10J.H. Niewenhuis, translation by DjasadiSaragih.1985. Principles of Legal Engagement, Translation by 
DjasadinSaragih, UNAIR-FH, Surabaya. 

 

 

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f. Debtors do not perform well.  

This is contrary to Law No. 8 of 1999 on consumer protection. As in Chapter III 

Rights and obligations, Part One Consumer Rights and duties Article 4 point h which 

contains "the right to receive compensation, compensation and / or reimbursement, if the 

goods and / or services received are not in accordance with the agreement as 

appropriate." Part Two Rights and Obligations of Business Actors Article 7 Consumer 

Protection Laws on the Rights and Duties of Business Actors C points "treat or serve 

consumers properly and honestly and non-discriminatory. 

Legal protection can be defined as a protection afforded to legal subjects in the 

form of either repressive or repressive means, whether oral or written. In other words it 

can be said that the protection of the law as a separate feature of the function of the law 

itself, which has the concept that the law gives a justice, order, certainty, benefit and 

peace. Consumer law is defined as the whole legal principles and rules governing 

relationships and problems between various parties or each other related to goods and / 

or services within the social life. Based on Article 163 HIR and Article 1865 of the Civil 

Code, any party that argues for a right, then the party must prove it. So if the consumer 

demands his right to the business actor that harms him, then the consumer must prove. 

However, in Law Number 8 Year 1999 concerning Consumer Protection Article 22 and 

Article 28, the evidentiary obligation is "reversed" (reversed proof) to be the full 

responsibility and responsibility of the business actor. So the provisions on responsibility 

and redress in the Consumer Protection Act are lex specialists against the general 

provisions contained in the Civil Code. 

 

CONCLUSION 

The oral agreement is still valid and has the legal power to declare a person to 

default, but if the oral agreement is denied / not recognized by the alleged infringer, the 

oral agreement has no legal power to declare a person to default, because the 

agreement is true and can also not exist, depending on the proof of the parties. This is 

because the presence or absence of the agreement is crucial in declaring a person to 

make a default, because a person can not be declared wanprestasi if there is no 

agreement made.Oral agreements denied / not acknowledged by any of the parties 

making them, do not have the force of law to declare a person to default, but a verbal 

agreement that has been denied / unrecognized may regain its legal power if it can be 

proven that the oral agreement actually exists or ever made. Law No. 8 of 1999 on 

consumer protection, Consumer law is defined as the whole principles and legal rules 

governing relationships and problems between various parties or each other related to 

goods and / or services within the association of life.Based on Article 163 HIR and Article 

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1865 of the Civil Code, any party that argues for a right, then the party must prove it. So if 

the consumer demands his right to the business actor that harms him, then the consumer 

must prove. However, in Law Number 8 Year 1999 concerning Consumer Protection 

Article 22 and Article 28, the evidentiary obligation is "reversed" (reversed proof) to be the 

full responsibility and responsibility of the business actor. So the provisions on 

responsibility and redress in the Consumer Protection Act are lex specialists against the 

general provisions contained in the Civil Code. 

 

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Aswari, Aan, Andika Prawira Buana, and Farah Syah Rezah. "Harmonisasi Hukum Hak 

untuk Dilupakan bagi Koran Digital terhadap Calon Mahasiswa di 

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Mariam DarusBadrulzaman. 2015. The Law of Alliance in the Third Book Civil Code. 

Bandung: PT. C itra Aditya Bakti. 

 

Muhammad Syaifuddin. 2012. Contract Law: Understanding Contracts in Perspective 

Philosophy, Theory, Dogmatics and Legal Practice. Bandung: C V. MandarMaju. 

 

Munir Fuady. 2001. Contract Law (From a Business Law Perspective), Second Book. 

Bandung: PT. Citra Aditya Bakti. 

 

Niewenhuis.J.H, 1985. Principles of Legal Engagement, Translation by DjasadinSaragih, 

UNAIR-FH, Surabaya. 

 

Salim HS, 2003. Introduction to Written Civil Law (BW), SinarGrafika. 

     

Subekti. R 1996. Law of Agreement. Jakarta: Intermas. 

 

Code of Civil law. 

 

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