Legal Analysis of Misbruik Van Omstandigheden Doctrine as a Reason for Canceling the Agreement

This research uses a normative juridical method with a statutory, comparative and case approach. Based on civil law in Indonesia, an agreement can be canceled if three things occur, namely error, coercion or fraud. However, something else can also happen, namely misuse of the situation. This research then compares this with several countries, namely Malaysia, Singapore and the United States regarding the application of abuse of circumstances as reasons for canceling agreements. In common law countries, misuse of circumstances can be used as a reason for canceling an agreement without having to file a lawsuit in court and be used as a reason for cancellation, whereas in Indonesia misuse of circumstances is an indicator of an unlawful act, not an indicator of things that can cancel an agreement. So the result of this research is that there is a need for improvements to revise regulations regarding indicators of reasons for canceling an agreement by including abuse of circumstances as one of the indicators of reasons for canceling an agreement.