Legal Literacy - Understand the Relationship between Binding, Agreement and Contract in Covenant Law and Civil Law. Learn the legal terms of oral and written agreements and the implications in case of default. This article provides a comprehensive understanding of important aspects of the legal world.

By: Defian Putri Tiara

Before answering what is the relationship between engagement, agreement and contract, let's first analyze the meaning of each of the three.

Engagement

According to BW or the Civil Code, an engagement is a legal relationship between 2 or more parties in which one party is entitled to a performance while the other party is obliged to perform the performance. Article 1233 of the Burgerlijk Wetboek (BW) regulates the source of obligations, which can stem from consent and law.

Article 1233 of the Civil Code states that every obligation is born either by agreement or by law. This indicates that obligations are born because of agreements or laws, in other words, laws and agreements are the source of obligations.

Agreement

Article 1313 of the Civil Code explains that an agreement is an act in which one or more people bind themselves to one or more other people. From the formulation of the Article, it can be concluded that agreements in this context are agreements that give rise to obligations or obligatory agreements. Agreements produce the legal effects desired by the parties involved.

Prof. Subekti, S.H. in his book "The Law of Treaties" states that the relationship between the obligation and the agreement is that the agreement issues an obligation. Agreements give rise to obligations in addition to other sources.