Legal liability in standard form of contract
Keywords:
consumer contracts, imbalance position, legal liability, standard form of contract, states liabilitiesAbstract
The validity of the standard form of contract is not necessary to be disputed. The standard form of contract has become a business necessity in relation to efficiency and effectiveness. The aspect of problems arising in the standard form of contract is the aspect of the imbalance position of the parties. The standard form of contract is potential to be abused by parties having stronger bargaining power. One of the forms of the imbalance is the inclusion of exemption clauses that aim to limit or release the liability of one of the parties. Currently, the rules governing the exemption clause exists only in the Law No. 8 of 1999 on Consumer Protection (LCP). Article 18 of LCP governing the standard form of the clause is limited to the extent of prohibited form and content and only aimed at final consumer contracts. In reality, the standard form of the clause is also found in commercial contracts that are not only on final consumers but also midst consumers. Based on this matter, it is necessary to elaborate on the liabilities of the parties and state in drawing up standard form of contacts.
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