Abstract

In a business case when a company had a legal problem to distinguish between fraud and default, the company need further legal analysis to see the difference between the two. This study aims to identify default and the crime of fraud in business contract in Indonesian laws. The results showed that every action that is categorized as a criminal case must have an act ( actus reus ) and malicious intent ( mens rea ). If actus reus is an act against the law, then what is meant by mens rea are things that include elements of the criminal act. There are 2 indicators to distinguish whether the act committed in the context of the agreement constitutes default or fraud. First, when, that is, if there is a situation that is not right before the agreement is closed/agreed upon, it is fraud, on the contrary if after the agreement is closed then it is default. Second, there must be a series of lies spoken before the agreement is closed before it can be said as fraud is not enough with one lie. Keywords: default, business crime, business contract, business law, Indonesia DOI: 10.7176/JLPG/107-03 Publication date: March 31 st 2021

Highlights

  • In a business case when a company had a legal problem to distinguish between fraud and default, the company need further legal analysis to see the difference

  • The fundamental difference between a default lawsuit case lies in the good will or goodwill between the parties or the good faith is stated in a mutually beneficial agreement either before a public official or made by a public official signed by both parties, from the start it is reflected in the motivation of the parties to cooperate

  • The results showed that every action that is categorized as a criminal case must have an act and malicious intent

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Summary

Introduction

In a business case when a company had a legal problem to distinguish between fraud and default, the company need further legal analysis to see the difference. Indonesian Supreme Court Jurisprudence dated 26 July 1990 No.1601.K/Pid/1990 which stated: "The main element of the delict of fraud (Article 378 of the Criminal Code) lies in the methods/efforts that have been used by the perpetrator of the delict to move other people to hand over something. "The basic principle of the criminal act of fraud is dishonest means of obtaining property, namely by means of cheating/trickery. When the company face business problems that result in losses, the company will find it easier to distinguish between fraud or default by seeing the good intentions between parties by reading this article. This study aims to identify default and the crime of fraud in business contract in Indonesian laws

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