This presentation is one of my assignment in Business Law Class in Sampoerna University. This presentation is about Termination of Contract. Slide: PowerPoint 2013 Design by: Hedi Fauzi Image: Google Image If you want the original file for your reference, feel free to ask me via email: hedi.fauzi@hotmail.com with subject [SlideShare] (Your Subject)

1. Group 5
Termination of Contract
Husna, Diah, Arzaq, Nahdi, Hedi – Sampoerna University
Business Law – Mr. Hari Sungkari

2. Termination of Contract
Performance
Certified Tender
Novation
Compensation
Confusion (merger)
Remission of Debt
Destruction of
Subject Matter
Dissolution
Occurrence of a
Resolutory Condition
Prescription
10CAUSES

3. Termination of Contract
10CAUSES
1Performance
Fulfilling contract terms is called “performance”. Some
situations may make performance of contract terms impossible.
For example, in a contract for a musical concert, the contract may
sometimes be terminated if the performer becomes incapacitated.

4. Termination of Contract
2Certified Tender
In situations where an obligee refuses to accept performance
(contract)
For example, the payment of a certain sum of
money - the obligor can discharge his obligation by means of a
certified offer to perform. If this offer is refused, the debtor becomes
entitled to deposit the money (or goods) due
with the Court and to receive an order of.

5. Termination of Contract
3Novation
A particular obligation can also be discharged by the creation of a
new obligation intended to replace it. Novation can occur in 3 ways:
• The old contract is replaced by a new one
• The old obligor is replaced by a new one
• The old obligee is replaced by a new one
In all cases, however, the novation must have the agreement of both of the
original parties, and their intentions must in fact be to extinguish the
original debt between them.

6. Termination of Contract
4Compensation
When two persons owe each other similar obligations, the two
debts cancel one another up to the amount of the lesser of the two.
For example, if A owes B $12 and is owed 85 by B, B's debt to A will
be discharged, and A’s debt to B reduced to 87. For the
"compensation" or "set-off" to occur, the obligations must be of a
similar type and concern similar objects - mutual obligations to pay
money, say, or to deliver goods of the same type and quality.

7. Termination of Contract
5Confusion (merger)
If the position of creditor and debtor become united in one
person, the obligation is extinguished.
This situation usually arises as a result of succession
For example, A, the debtor of B, succeeds to B's rights by
virtue of B's last will and testament.

8. Termination of Contract
6Remission of Debt
As a general rule, an obligor is always free to release his oblige
from an obligation. To be valid, the remission must be
affirmatively proved. The Code provides that voluntary delivery
by the creditor to his debtor of the original, signed copy of the
agreement is sufficient evidence of release
For example, when creditor A surrender to debtor B that he
cant fulfill his debt, so they will make remission for those debt
under private signature constituting the obligation.

9. Termination of Contract
7Destruction of Subject Matter
If the goods which are the object of a contract are damaged
beyond repair, are lost or perish, and the seller himself is not
responsible for this loss or disappearance, he is discharged from
his obligation to deliver.
For example, (when A agree to buy B’s house. But before the
transaction the B’s house destroy by the fire. Thus, the A cancel the
purchasing. Because of the destruction of subject matter).

10. Termination of Contract
8Dissolution
A court, as noted earlier, can annul the contracts of minors and
wards, and also contracts where the requisite consent is
obtained by duress, misrepresentation, mistake, or fraud.
For example, your 6-year-old child signs a contract to buy a used
car. The contract isn’t valid because minors (usually under 18 years
old) aren’t old enough to make them

11. Termination of Contract
9Occurrence of a Resolutory Condition
Recognizes a category of obligations known as "conditional
obligations", that is, obligations which either come into
existence or disappear upon the happening of a particular event
whose occurrence is not certain to happen
For example, a promise to rent one's house to X in the event one
goes abroad, or a promise by X to relinquish the house he is renting
from Y if and when Y returns to Indonesia from abroad. An
obligation of the latter sort, which is known as an obligation subject
to a resolutory condition, is said to be extinguish by the realization
of the condition, and the creditor must return whatever he has
received in the same state as though there had never been a
contract.

12. Termination of Contract
10Prescription
A creditor who waits too long to press a claim may be barred
forever from doing so. As a general rule that all legal claims of
whatever sort expire 30 years after the date on which they
arise, and all related legal obligations are discharged. Shorter
periods are sometimes specified for particular actions
For example, we have seen that an action to nullify a contract on
grounds of duress, mistake or fraud must be brought within five
years of the cessation of the duress or within five years of the
discovery of the mistake or fraud

13. Group 5
Thank You
design by Hedi Fauzi