Butterfly Effect in Development of Contract Law in Indonesia

Abstract

This paper explains the importance of fundamental changes in the contract law system in Indonesia which is nothing has changed yet until now. Butterfly effect in the development of contract law, especially through court decisions, will greatly affect the economic sectors. The small factor in the court ruling on contract law will have an extraordinary impact such as butterfly effect discovered by Edward Norton Lorenz, which confirms, the butterfly effect is a sensitive dependence on initial conditions. Change is mainly in the pre-contractual domain because contracts are not only based on rigorous and very careful contract clauses but also involve legal actions in the pre-contractual phase. Contract law does not only contain legal factors, but precisely the underlying moral aspect is very important to protect the interests of the parties and economic sectors affected by court decisions. Court decisions aimed at realizing justice, legal certainty, and effectiveness must be applied proportionally because the emphasis of the elements to be prioritized is the main factor for realizing law and economic interests.