Exoneration clauses in standard property agreements: between freedom of contract and consumer protection
DOI:
https://doi.org/10.35586/velrev.v9i1.13907Keywords:
standard agreements, exonerating clauses, freedom of contract, consumer protection, contractual fairnessAbstract
Standard agreements are commonly used in property sales to accelerate economic transactions, but they also raise important issues regarding the differing bargaining power of sellers and buyers. A major issue that arises is the use of liability exemption clauses, which protect developers rather than consumers. Taking into account the principles of fairness in contracts and the balance of rights and obligations, this study examines the legitimacy of such clauses in standard property agreements. Furthermore, the study aims to create a model agreement that strikes a balance between contractual freedom and consumer protection. A normative legal study was conducted through legislation, legal concepts, and comparative law. The results indicate that the evaluation of liability exemption clauses must be based on formal legal rules, as well as on substantive justice, transparent communication and balanced risk sharing between the parties involved. To prevent the abuse of standard provisions, the study recommends redesigning property agreements to incorporate fairness testing and consumer protection principles based on risk analysis. By providing a more flexible evaluation framework for common contract practices in the property sector, these findings will contribute to the development of contemporary contract law
Downloads
References
Al-Samadi, M., et al. (2025). Contractual Justice as a Basis for Amending Contracts. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 17(3). https://doi.org/10.1061/JLADAH.LADR-1217
Agustini, S., Jaya, F., & Rusdiana, S. (2024). “Legality and Proof of Unwritten Agreements from a Civil Law Perspective.” Batulis Civil Law Review 5(2), 109-115. https://doi.org/10.47268/ballrev.v5i2.2033
Bassan, F., & Rabitti, M. (2024). From smart legal contracts to contracts on blockchain: An empirical investigation. Computer Law & Security Review: The International Journal of Technology Law and Practice 55, 1-25. https://doi.org/10.1016/j.clsr.2024.106035
Blasie, M.A. (2024). The Duty to Make Contracts Understandable. Blasie, Michael, The Duty to Make Contracts Understandable (April 24, 2024). Columbia Business Law Review 2, 464-552. https://doi.org/10.52214/cblr.v2024i2.14234
Bławat, M. (2022). The Court’s Interference with Contracts by Supplying and Converting the Contractual Terms. Utrecht Law Review 18(1), 76-92. https://doi.org/10.36633/ulr.759
Brampu, I., Aspan, H., & Dahlan, H. (2024). Application of The Principle of Freedom of Contract in Business Contracts in Indonesia. International Journal of Law and Society, 1(2), 91–101. https://doi.org/10.62951/ijls.v1i2.27
Daiza, H. (2018). Wrap Con Wrap Contracts: How They Can Work Be S: How They Can Work Better for Ter for Businesses and Consumers. California Western Law Review 54(1), 201-239. https://scholarlycommons.law.cwsl.edu/cwlr/vol54/iss1/14/
Dewi, C., Lestari, I., & Nurjanah, S. (2025). The Urgency of Legal Protection for Weak Parties in Contemporary Contract Law. Advances in Social Humanities Research 3(4), 347-355. https://doi.org/10.46799/adv.v3i4.434
Dewi, F.N.F., & Hasana, D. (2025). Legal Impact of Exoneration Clauses in Standard Contract Deeds with High Legal Risk. TABELLIUS Journal of Law 3(4), 1421-1433. https://jurnal.unissula.ac.id/index.php/tabelius/article/view/49320
Hapsari, D.R.I., & Kurniawan, K.D. (2020). Consumer Protection: Principle of Proportionality in Banking Credit Agreement under the Indonesian law. Fiat Justisia Jurnal Ilmu Hukum 14(4), 337-352. https://doi.org/10.25041/fiatjustisia.v14no4.1884
Hassanah, H., Wahyudi, W., & Aziz, N.A. (2023). Standard Clause Problems in E-Commerce Based on Indonesian Civil Law. Jurnal Wawasan Yuridika 7(2), 221-238. https://doi.org/10.25072//jwy.v7i2.4226
Hoshi, A. (2021). Interpretation of Corporate Acquisition Contracts in Japan: A Legal Transplant through Contract Drafting. Asian Journal of Comparative Law 16(1), 106-123. https://doi.org/10.1017/asjcl.2021.9
Howells, G. (2020). Protecting Consumer Protection Values in the Fourth Industrial Revolution. Journal of Consumer Policy 43, 145-175. https://doi.org/10.1007/s10603-019-09430-3
Isrofani, R., et al. (2022). Implementation of the Rights and Obligations of the Parties in the Law of the Agreement. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) 5(2), 4416-14421. https://doi.org/10.33258/birci.v5i2.5308
Junaidi, J. (2023). Analisis Hukum Pelanggaran Perjanjian Endorsement Berdasarkan KUH Perdata Konsekuensi serta Implikasinya. Thengkyang, 7(2), 96-103. https://jurnal.unisti.ac.id/thengkyang/article/view/249
Junaidi, J. (2025). Klausula Eksonerasi: Akibat Hukum Perjanjian Baku dalam Perjanjian Pengikatan Jual Beli Perumahan. Wajah Hukum 9(1), 189-198. https://doi.org/10.33087/wjh.v9i1.1616
Junaidi, J, Fransisco, W., & Suharto, B. (2025). Civil Law Aspects in the Case of Negligence of Tourism Service Providers That Result in Losses for Tourists. JHK: Jurnal Hukum dan Keadilan 2(5), 61-72. https://doi.org/10.61942/jhk.v2i5.428
Junior, M.L.L. (2025). Standard Agreements and the Protection of Consumers: A Critical Analysis. Scholars International Journal of Law, Crime and Justice 8(3), 59-67. https://doi.org/10.36348/sijlcj.2025.v08i03.002
Juwenie, J. (2025). Consumer protection in property sales transactions using standard clauses. Brazilian Journal of Development, 11(11), 1-11. https://doi.org/10.34117/bjdv11n11-019
Kania, D. (2024). Power Disparity in Contract Law: An Analysis of the Impact of Limitation of Liability Clauses in Asymmetric Contractual Relationships. Ijtihad: Jurnal Hukum dan Ekonomi Islam 18(18), 12-20. https://doi.org/10.21111/ijtihad.v18i2.12863
Lusita, L., Widiarty, W.S., & Tobing, G.L. (2022). Legal protection for consumers related to standard clauses according to law number 8 of 1999 concerning consumer protection. International Journal of Law 8(2), 7-13. https://www.lawjournals.org/archives/2022/vol8/issue2/8-1-55
Narwadi, N.A.A., Budiana, I.N., & Kurniawan, I.G.A. (2025). Reconstruction of Business Legal Ethics from the Perspective of the Principles of Good Faith and Contractual Fairness. Pena Justisia: Media Komunikasi dan Kajian Hukum 24(2), 7025-704. https://doi.org/10.31941/pj.v24i2.6888
Nugrahenti, M.C., & Hernawan, A. (2024). Good faith principle in Indonesian contract law: How to set the definition and its benchmarks. Journal of Infrastructure, Policy and Development 8(10), 1-16. https://doi.org/10.24294/jipd.v8i10.7358
Nottage, L., et al (2019). Regulating Consumer Contracts in ASEAN: Variation and Change. In: ASEAN Consumer Law Harmonisation and Cooperation: Achievements and Challenges. Integration through Law the Role of Law and the Rule of Law in ASEAN Integration. Cambridge University Press; 205-260. https://doi.org/10.1017/9781108770149.005
Parisi, F., & Bix, B.H. (2025). Fairness in contract law: an impossibility theorem? European Journal of Law and Economic, 1-18. https://doi.org/10.1007/s10657-025-09858-8
Perdana, S., & Koto, I. (2024). Providing Legal Protection for Consumers Against Standard Clauses/One-sided Agreements Made by Business Actors. DE LEGA LATA: Jurnal Ilmu Hukum 9(1), 23-30. https://doi.org/10.30596/dll.v9i1.18064
Pratiwi, Y.S. (2022). The Comparison of Assessment of Standard Clauses in the Perspective of Business Activities between Indonesian (Civil Law) and American (Common Law) Countries. Ratio Legis Journal (RLJ) 1(4), 1066-1074. https://dx.doi.org/10.30659/rlj.1.4.%p
Quintarti, M.A.L., et al. (2025). Developer's Responsibility to Consumers in a Problematic Property Sale and Purchase Agreement. International Journal of Health, Economics, and Social Sciences (IJHESS) 7(2), 771-775. https://doi.org/10.56338/ijhess.v7i2.7308
Ramadani, F.R., Suraji, S., & Kharisma, D.B. (2024). Consumer Legal Protection Against Developer Defaults in Binding Agreements for the Sale and Purchase of Flats. MAQASIDI: Jurnal Syariah dan Hukum 4(2), 295-305. https://doi.org/10.47498/maqasidi.v4vi2.4231
Rasmiaty, M. (2025). The Principle of Proportionality in Franchise Agreements: Implications and Practices in Business Contractual Relationships. Journal of Indonesia Law & Policy Review 6(2), 244-254. https://doi.org/10.56371/jirpl.v6i2.361
Ratna, Y., & Djajaputra, G. (2024). Legal Liability of Property Developers Regarding the Fulfillment of Obligations to Consumers in Sale and Purchase Transactions Using the Binding Sale and Purchase Agreement. Awang Long Law Review 6(2), 453-459. https://doi.org/10.56301/awl.v6i2.1204
Rusli, B. (2024). Freedom of Contract in Consumer Transactions and Its Effect on Consumer Protection. EScience Humanity Journal, 4(1), 82-91. https://doi.org/10.37296/esci.v4i1.70
Sasmitaningrum, D., Widhiyanti, H.N., & Anggraini, E. (2025). Legal protection for consumer buyers of flats with a sale and purchase agreement made under hand through the pre project selling system. Legal Horizons, 26(3), 60-67. https://doi.org/10.54477/LH.25192353.2025.3.pp.60-67
Schwarcz, D., Logue, K., & Cude, B.J. (2023). The Value of Understandable Consumer Insurance Contracts. The International Review of Financial Consumers 8(1),1-15. https://doi.org/10.36544/irfc.2023.8-1.1
Siombo, M.R. (2023). The Vulnerability of Proving Fraud as The Basis for Cancelling Agreements in The Digital Era. Jurnal Bina Mulia Hukum 7(2), 243-258. https://doi.org/10.23920/jbmh.v7i2.708
Simarmata, J., Wijaya, A., & Sangalang. R.S. (2025). Legal Protection for Consumers Against the Exoneration Clause on The Goods Stated If the Goods Are Broken or Damaged is The Same as Buying in The Review of Law Number 8 Of 1999 On Consumer Protection. JLPH: Journal of Law, Politic and Humanities 5(6), 4599-4605. https://doi.org/10.38035/jlph.v5i6
Sulaiman, S.A., Emirzon, J., & Hamzah, H. (2023). Evolving the Concept of Default in Relation to Losses Arising from Standard Agreements for Bank Account Openings. Fiat Justisia Jurnal Ilmu Hukum 7(4), 379-392. https://doi.org/10.25041/fiatjustisia.v17no4.3015
Tantri, A.R., Wulandari, N.A., & Hawaningsih, S. (2025). Normative Analysis of Article 1338 of the Indonesian Civil Code in the Perspective of Article 28d of the 1945 Constitution. Rechtsvinding 3(2), 217-226. https://doi.org/10.59525/rechtsvinding.v3i2.1122
Yuanitasari, D., Kusmayanti, H., & Suwandono, A. (2023). A comparison study of strict liability principles implementation for the product liability within Indonesian consumer protection law between Indonesia and United States of America law. Cogent Social Sciences, 9(2), 1-12. https://doi.org/10.1080/23311886.2023.2246748
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Veteran Law Review
This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License. The author(s) retain copyright and grant Veteran Law Review the right of first publication.
1. License
The use of the article will be governed by the Creative Commons Attribution license as currently displayed on Creative Commons Attribution 4.0 International.
2. Author(s)' Warranties
The author warrants that the article is original, written by the stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author, and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User/Public Rights
VELREV's spirit is to disseminate articles published as freely as possible. Under the Creative Commons Attribution 4.0 International License, VELREV permits users to copy, distribute, display, and perform the work, including for commercial purposes, as long as they credit the author(s) and VELREV as the original publisher of the article.
4. Rights of Authors
Authors retain all their rights to the published works, such as (but not limited to) the following rights;
- Reproduce the work
- Prepare derivative works based upon the work
- Distribute copies of the work
- Perform the work publicly
- Display the work publicly
- Copyright and other proprietary rights relating to the article, such as patent rights,
- The right to self-archive the article,
- The right to enter into separate, additional contractual arrangements for the non-exclusive distribution of the article's published version (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal (Veteran Law Review).
5. Co-Authorship
If the article was jointly prepared by more than one author, any author submitting the manuscript warrants that he/she has been authorized by all co-authors to be agreed on this copyright and license notice (agreement) on their behalf, and agrees to inform his/her co-authors of the terms of this policy. VELREV will not be held liable for anything that may arise due to the author's internal dispute. VELREV will only communicate with the corresponding author.
6. Royalties
Being an open accessed journal and disseminating articles for free under the Creative Commons license term mentioned, author(s) are aware that VELREV entitles the author(s) to no royalties or other fees.
7. Miscellaneous
VELREV will publish the article (or have it published) in the journal if the article's editorial process is successfully completed. VELREV's editors may modify the article to a style of punctuation, spelling, capitalization, referencing, and usage that deems appropriate. The author acknowledges that the article may be published so that it will be publicly accessible and such access will be free of charge for the readers as mentioned in point 3.
