Cancellation of the Deed of Sale and Purchase Agreement (Analysis of Decision Number 566/PDT/2020/PT DKI)

Abstract

The cancellation of an authentically made agreement can result in legal consequences for both the involved parties and the related deed. This study examines the High Court Decision Number 566/PDT/2020/PT DKI, analyzing whether the judges' considerations align with Article 1238 of the Civil Code and the legal implications of canceling a Sale and Purchase Agreement (PPJB) for apartment units. Using a normative juridical approach, the research focuses on legal regulations governing such agreements. The findings indicate that while the buyer demonstrated good faith by paying for 3 out of 16 units, the court canceled all 16 agreements due to failure to meet other contractual obligations. This decision raises concerns about the court’s thoroughness in weighing the buyer’s partial compliance. The legal implications of the cancellation include the requirement for both parties to fulfill their obligations as agreed in the PPJB. If one party fails to do so, the aggrieved party can seek to cancel the agreement, claim recovery, or request compensation, and any performance received must be returned.