Agreement Conclusion is What?

What is Contract Conclusion?

According to Subsection 1, Section 7, Chapter XV of the Civil Code 2015 regarding contract conclusion, it can be understood that contract conclusion is the manifestation of the parties' will to agree to establish, change, or terminate civil rights and obligations based on the principles and legal provisions specific to each contract conclusion.

Explanation of the Current Civil Contract?

According to the current provisions of the Civil Code 2015, the explanation of a contract is regulated as follows:

- When a contract has unclear terms, the interpretation of those terms should not only rely on the language of the contract but also on the will of the parties as manifested throughout the entire process before, at the time of, and after the establishment and execution of the contract.

- When a contract has terms or language that can be understood in multiple ways, they must be interpreted in a manner that best aligns with the purpose and nature of the contract.

- When a contract has terms or language that are difficult to understand, they must be interpreted according to the customs at the location where the contract was concluded.

- The terms in a contract must be interpreted in relation to one another so that their meaning aligns with the overall content of the contract.

- In case of a conflict between the common will of the parties and the language used in the contract, the common will of the parties shall be used for interpretation.

- In case the drafting party includes unfavorable content for the other party, the contract must be interpreted in a way that benefits the other party.

The explanation of a civil contract is regulated at Article 404 of the Civil Code 2015.

Sincerely!