Principle of Misbruik Van Omstandigheden in Contract Termination

An agreement is a mutual understanding between two or more parties to establish a legal relationship. However, there are situations where one party takes advantage of specific circumstances to gain unfair advantages over the other party. In this context, the principle of Misbruik Van Omstandigheden plays a crucial role in protecting the weaker party in a contract.

“The principle of Misbruik Van Omstandigheden”, or the misuse of circumstances, can be defined as a situation where one party exploits certain conditions or circumstances to obtain unfair advantages over the other party. This principle arises due to the power imbalance between the involved parties in the agreement. The stronger party has an advantage in influencing and exploiting the weaker party for their own benefit.

In a contract, The Principle of Misbruik Van Omstandigheden involves a party that possesses greater power or control in a particular situation. They can use the specific conditions or information to gain unfair advantages over the less powerful party. This principle ensures that the weaker party is protected from the abuse by the stronger party.

An example of the application of The Principle of Misbruik Van Omstandigheden can be seen in the lawsuit filed by PT Lintas Teknologi Indonesia against PT Indosat Tbk. The judge declared that the reconciliation agreement between the two companies, made on June 6, 2014, was null and void with all legal consequences. The agreement was deemed void due to the abuse of circumstances committed by PT Indosat, known as misbruik van omstandigheden. PT Lintas Teknologi Indonesia claimed that PT Indosat had abused the circumstances and used unlawful means in the making of the reconciliation agreement.

In law, The Principle of Misbruik Van Omstandigheden provides a basis for the court to invalidate agreements involving such abuse. If an agreement is categorized as an abuse of circumstances, the court can decide to terminate that agreement.

It is important to understand The Principle of Misbruik Van Omstandigheden involves an objective assessment of the existing situation. The court will consider various factors such as unfairness, dependence, intentionality, and detrimental consequences to determine whether there has been an abuse of circumstances in the agreement.

- Written by Edwin Hasibuan-