The Legal Status and Protection of Parties in Breach of Unwritten Contract

Abstract

The growing use of digital platforms has altered how people in Indonesia enter into everyday agreements, with many transactions now being formed through casual chats, text messages, or social media. Although Indonesian civil law, through the principle of consensualism, recognizes that agreements do not need to be written to be legally binding, the lack of formal documentation often creates uncertainty, particularly when a breach occurs. This research explores how unwritten agreements function within the legal system and what forms of protection are available for individuals harmed when such agreements are broken. Using a normative legal research method supported by statutory, conceptual, and case analyses, the study examines the Civil Code, the Electronic Information and Transactions Law (UU ITE), the Consumer Protection Law (UUPK), and relevant case law. The results show that while unwritten digital agreements are valid, enforcing them remains difficult due to proof limitations, inconsistent regulatory oversight, and low public awareness of legal remedies. Insights from Islamic law further highlight the importance of fairness, honesty, and compensation for losses. The study concludes that improving evidentiary tools, strengthening consumer safeguards, and expanding accessible dispute-resolution mechanisms are essential to ensuring legal certainty in digital transactions.