When is the agreement declared null and void?

Jun 23, 2025 | News

the agreement declared null and void

In civil law practice, agreements form the foundation of legal relationships between parties. A contract not only regulates the rights and obligations of those involved, but also reflects the principle of freedom of contract protected by law. However, not all legally made agreements automatically carry binding legal force. In certain situations, an agreement may be declared null and void—meaning it is considered as never having existed from the outset.

One of the most misunderstood concepts in Indonesian contract law is the notion of a “null and void agreement.” This term refers to an agreement deemed legally non-existent from the beginning due to a fundamental legal defect. Unlike contracts that are voidable, a null and void contract requires no court ruling to be considered invalid. Understanding this concept is crucial for legal practitioners, business actors, and the general public engaged in contractual arrangements.

Dasar Hukum Perjanjian Batal Demi Hukum Menurut KUHPerdata

Article 1335 of the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata or “KUHPerdata”) serves as the primary reference for determining when a contract is considered null and void. The article states:

“An agreement without a cause, or based on a false or prohibited cause, has no legal effect.”

This provision indicates that if a contract lacks a lawful causa (legal reason), or if the cause contradicts law or morality, then the agreement is null and void by operation of law. In other words, the agreement is not legally binding from the outset, and no judicial decision is required to invalidate it.

For example, contracts involving unlawful acts such as narcotics trade, human trafficking, or bribery are automatically considered null and void, as their objectives violate Indonesian positive law. According to Hukumonline, the phrase “null and void” in Article 1335 implies that such agreements never held legal force from the beginning. This differs from the notion of “voidable” agreements, which require further legal action to be invalidated.

Furthermore, Article 1320 of the Civil Code outlines four essential elements for the validity of a contract:

  1. Mutual consent of the parties;
  2. Legal capacity to bind themselves;
  3. A specific subject matter;
  4. A lawful cause.

The first two elements are subjective, while the latter two are objective. If the objective elements are not met, the contract is deemed null and void. In contrast, failure to fulfill subjective elements makes a contract voidable, not automatically void.

Distinguishing Null and Void Contracts from Voidable Contracts

In legal practice, it is crucial to differentiate between null and void contracts and voidable contracts, as they have different legal implications in terms of enforceability and legal remedies.

1. Null and Void Contracts

These contracts are invalid from the beginning. No further legal action is needed to declare their ineffectiveness. Common causes include:

(a). An unlawful or prohibited causa (Article 1335 KUHPerdata);
(b). Contradiction with law, morality, or public order;
(c). An object that is impossible or illegal to perform;
(d). The absence of legal subjectivity (e.g., a contract made by a legally incapacitated person).

2. Voidable Contracts

These contracts are valid and binding, unless one party seeks annulment due to a legal defect. They require a court decision to be rendered invalid. Typical causes include:

(a). Coercion, fraud, or mistake (Article 1321 KUHPerdata);
(b). A party being underage but not legally incapacitated;
(c). Lack of free consent.

Understanding the distinction is critical, as null and void contracts create no legal rights or obligations, while voidable contracts remain enforceable until a judicial decision is rendered.

Case Studies on Null and Void Contracts and Their Legal Implications

1. Land Sale Agreement Based on Forgery

In Supreme Court Decision No. 1974 K/PDT/2001 (dated 29 September 2003), the transfer of land rights was declared null and void due to a forged signature in the sale deed. However, the forgery must be proven through forensic examination or a criminal conviction. The absence of genuine consent from the rightful party rendered the agreement legally void from the outset.

2. Contract Without Mutual Consent

Supreme Court Decision No. 3335 K/PDT/2003 (dated 14 June 2005) affirmed that a contract may be deemed null and void if mutual consent, as required under Article 1320, is absent. In the case, one party’s name was included in the agreement without their actual consent. Since genuine agreement never existed, the contract was invalid from the beginning.

3. Invalid Agreement Due to Lack of Specific Object

In Supreme Court Decisions No. 406 K/PDT/2007 and No. 1790 K/PDT/2008, the court held that a contract lacking a clearly defined object or performance fails to meet the validity requirements under Article 1320. As a result, the agreement was deemed null and void for lacking a necessary legal element.

Under Indonesian civil law, a contract must meet all legal validity requirements to produce binding legal effects. If a contract lacks a lawful cause or other objective elements, it is considered null and void by law, meaning it never had legal force.

Understanding the difference between null and void contracts and voidable contracts is essential to assess legal risks and obligations. Contracts declared null and void have no legal effect, while voidable contracts remain valid unless annulled by a court.

Thus, parties entering into agreements must have a thorough understanding of the legal requirements under the Civil Code—particularly Articles 1320 and 1335—to ensure their contracts are enforceable and legally protective. At SIP Law Firm, we emphasize preventive legal awareness as the first step to secure legally sound and enforceable agreements.***

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