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THE ACTION OF A LESSOR OF LEASING AN OBJECT TO A THIRD PARTY DOES NOT FULFILL THE REQUIREMENTS OF A CONTRACT

The existence of bad faith on the part of the lessor is not the authorized party over the land because the ownership process through grants does
not meet the objective requirements, making the lessor’s action of leasing the object to a third party not fulfill the requirement of having a lawful cause. Therefore, the agreement is null and void. It is considered to never exist from the beginning.

Supreme Court Decision No.613 K/Pdt/1991, dated 26 February 1994.
 
Source: Legal Explanation Regarding Cancellation of Agreement, Authors: Elly Erawati and Herlien Budiono, page 91.
 
Best regards
Fredrik J. Pinakunary


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