ACTION THAT CAN BE TAKEN BY THE PARTIES AS A RESULT OF DIFFERENCES IN THE RIGHT TO SUSPEND PERFORMANCE REGULATED IN CISG 1980 AND INDONESIA CONTRACT LAW

Abstract

The United Nations Convention on Contracts for the International Sale of Goods 1980 (CISG 1980) and Indonesian contract law have regulated the right to suspend performance. The arrangement is regulated by Article 71 CISG 1980 and Article 1478 of the Indonesia Civil Code (ICC). Until now, Indonesia has not ratified the CISG 1980. This may result in differences in the regulation of the right to suspend performance between CISG 1980 and the ICC. This difference can cause uncertainty for business actors from Indonesia who conduct international trade in goods with partners from CISG 1980 member countries where CISG 1980 applies to contracts that the parties have made. The uncertainty arises because if there is a conflict between the CISG 1980 and the Indonesian Contract Law, the provisions in the Indonesian Contract Law take precedence as mandatory law. This research will analyze the mechanism of the right to suspend performance regulated in CISG 1980 and Indonesia Contract Law. The research method is a comparative normative judicial research method by comparing the mechanism of suspension of the implementation of obligations contained in the CISG 1980 with the Indonesian Contract Law. This research aims to find what efforts can be made by the parties in the event of a difference between the right to suspend performance regulated in the CISG 19880 and Indonesia Contract Law. The results of this research show that the efforts that can be taken by the partiers are to derogate the applicabilityy ofg CISG 1980 as a whole or only derogate the provision of article 71 CISG 1980.