ABSTRACT

In this modern era, business has become the main activity for many people, and many variety of business activities have been undertaken. Through business, many people have gained a lot of benefits and prosperity, although many of them also suffer from losses. Disputes can arise as a result of conducting business, and most of them are caused by the abuse of trusts or broken promises. Legal disputes can disrupt business activities of the perpetrators and a lot must be sacrificed, including the company’s reputation. However, disputes can be minimalized through making agreements or contracts. The parties that make the agreement or contract will have the freedom to put whatever is deemed necessary to secure the their rights according to the content of the contract. Freedom possessed by the parties in making the agreement is based on the freedom of contract principle in legal agreements.