Legal Capacity in Business Agreements: a Civil Law Perspective on Indonesian Commercial Practices
Year: 2026
Type: article
Abstract: This study aims to analyze the inconsistencies between legal capacity regulation based on Indonesian civil law and its application in contemporary commercial practices, especially in digital transactions. Legal capacity is a fundamental requirement for the validity of contractual agreements based on Indonesian civil law. However, its implementation in contemporary business transactions, especially in the digital commercial environment, remains inconsistent and legally problematic. Previous studies have mainly focused on normative interpretations of legal capacity without adequately examining the gap between legal doctrine and practical enforcement in modern business transactions. This study uses a statutory approach that relies on the Indonesian Civil Code, regulations related to electronic transactions, and scientific legal literature as primary sources of analysis. These findings suggest that disputes regarding the validity of contracts often arise due to the absence of effective verification mechanisms regarding the legal capacity of contracting parties, especially those involving minors, individuals under guardianship, and unverified digital users. Further studies reveal that low legal literacy among business actors, reactive enforcement mechanisms, and inadequate regulations in addressing digital business developments significantly contribute to the persistence of legal uncertainty in commercial contracts. In digital platforms, users can generally enter into agreements without substantive verification of legal competence. This research contributes to the discourse on civil law reform and digital contract governance by emphasizing the urgent need for adaptive legal mechanisms that are able to respond to contemporary business developments.
Institution: Universitas Wisnuwardhana Malang
Language: English
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7162759428