THE IMPLEMENTATION OF ARTICLE 1320 INDONESIAN CIVIL CODE RELATED WITH THE CAPACITY IN THE MERCHANT AGREEMENT BETWEEN PT PGI AND PT PTT

Abstract

Capacity is one of valid requirement for contract. This study aims to determine how the implementation of Article 1320 of the Civil Code is related to the Capacity of a Merchant Agreement. Normative - juridical legal method is used in this research in order to analyzes that those who signed an Contract did not have the Capacity to do so, the Director was the one who authorized all legal actions that occurred for a Company not a Shareholder. That the implementation of Article 1320 of the Civil Code related to this Capacity in practice is still not in accordance with what is supposed to be according to the Act.