Social Science
Alternative Dispute Resolution: A First Resort for Resolving Breach of Verbal Purchase Agreements in Business
Anggun Sukma,
Sri Budi Purwaningsih
Peer Reviewed
Abstract
"Disputes over breach of verbal purchase agreements often occur in society, particularly in the business sector. The purpose of this study is to analyze efforts to resolve such disputes based on Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution. The research method used is normative research. The results of this study show that efforts to resolve disputes over breach of verbal purchase agreements can be carried out through non-litigation based on the selection of Alternative Dispute Resolution methods, such as Negotiation, Mediation, Conciliation, and Arbitration based on Law No. 30/1999. Non-litigation resolution is intended as the first resort and considers the court as a last resort, in addition, the evidence tools as regulated in Article 1866 of the Civil Code need to be presented because the agreement was made verbally. Highlights : 1. Disputes over breach of verbal purchase agreements are common in the business sector. 2. Alternative Dispute Resolution methods such as negotiation, mediation, conciliation, and arbitration can be used to resolve disputes based on Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution. 3. Non-litigation resolution is the preferred approach, with the court being considered as a last resort, and evidence tools as regulated in Article 1866 of the Civil Code need to be presented for verbal agreements."
Key Questions
What is Alternative Dispute Resolution (ADR) in the context of verbal purchase agreements?
ADR refers to methods like consultation, negotiation, mediation, conciliation, or expert assessment used to resolve disputes outside the court system. In the context of verbal purchase agreements, ADR offers a means to address breaches without resorting to litigation.
Why is ADR considered a "first resort" in resolving disputes over verbal agreements?
ADR is viewed as a first resort because it aims to resolve conflicts efficiently and amicably, reducing the burden on courts and minimizing dissatisfaction among parties involved.
How does Indonesian law define and support the use of ADR?
Indonesian law, specifically Article 1 point 10 of Law No. 30 of 1999, defines ADR as a dispute resolution institution through procedures agreed upon by the parties, including consultation, negotiation, mediation, conciliation, or expert judgment.
What are the benefits of using ADR over traditional court litigation in verbal purchase disputes?
ADR offers benefits such as faster resolution, cost-effectiveness, confidentiality, and the preservation of relationships between parties, which are often strained in court proceedings.
Can ADR be applied to all types of verbal purchase agreement breaches?
While ADR is versatile, its applicability depends on the nature of the dispute and the willingness of parties to engage in the process. It is most effective when both parties seek a mutually agreeable solution.}
