Indonesia Private Law Review (Mar 2023)
THE PRINCIPLE OF PROPORTIONALITY ON DIGITAL BUSINESS AGREEMENTS: BETWEEN MITIGATION AND ORIENTATION
Abstract
An agreement is one of the most frequently executed legal actions in daily life. This research seeks to anticipate the evolution of digital agreements by examining the legal provisions and regulations governing traditional agreements. Employing a normative legal research methodology, which incorporates statutory and conceptual approaches, the research findings reveal that efforts to address digital agreements within the framework of contract law still predominantly adhere to Article 1320 of the Civil Code. This approach emphasizes four key strategies for minimizing risks associated with digital agreements: First, a preventive orientation, which involves scrutinizing the parties entering into agreements. Second, the application of prudence and proportionality in interpreting the terms of digital agreements. Third, ensuring prudence and proportionality in including identifiable and contactable entities within digital agreements. Fourth, exercising prudence and proportionality in defining the object of the agreement. This research highlights that the principle of proportionality, when applied to digital agreements, requires specific regulations, especially concerning the minimum requirements for their implementation. This necessity arises from the distinct characteristics of digital agreements, which demand tailored provisions regarding their validity, while generally continuing to reference Article 1320 of the Civil Code.
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