Default and the Crime of Fraud in Business Contract in Indonesian Laws

Abstract

In a business case when a company had a legal problem to distinguish between fraud and default, the company need further legal analysis to see the difference between the two. This study aims to identify default and the crime of fraud in business contract in Indonesian laws. The results showed that every action that is categorized as a criminal case must have an act (actus reus) and malicious intent (mens rea). If actus reus is an act against the law, then what is meant by mens rea are things that include elements of the criminal act. There are 2 indicators to distinguish whether the act committed in the context of the agreement constitutes default or fraud. First, when, that is, if there is a situation that is not right before the agreement is closed/agreed upon, it is fraud, on the contrary if after the agreement is closed then it is default. Second, there must be a series of lies spoken before the agreement is closed before it can be said as fraud is not enough with one lie.

Keywords: default, business crime, business contract, business law, Indonesia

DOI: 10.7176/JLPG/107-03

Publication date:March 31^st 2021