FREEDOM OF CONTRACT AND JUDICIAL INTERVENTION: DOES THE COURT HAVE THE RIGHT?

Abstract

Objective: The paper aims to elaborate on the implementation of freedom of contract and judicial intervention taken by the Indonesian judiciary institutions in the event that a contract does not reflect the balance of rights and obligations of the parties. It also discusses several cases that expose the involvement of the court in upholding justice by intervening in the contract. Methodology: The study is doctrinal legal research. It employed the statutory, conceptual, and case approach with prescriptive data analysis. Results: The study reveals that the freedom of contract is not limitless. In certain conditions, the court can intervene the implementation of the contract in case the court found the party's position is inequal and led to the harmful consequences that detriment a certain party. Contributions: It explores the restrictions of the freedom of contract principle by comprehensively explaining the reasoning behind its enforcement under the court’s authority. In addition, it clarifies the court's justification to perform a corrective function towards inequalities in contract performance.