LEGAL CONSEQUENCES OF DEFAULTS IN HOTEL BOOKING TRANSACTIONS IN BALI

THROUGH ONLINE

BYTEAM :

DesakGdeDwiArini, SH, M.Hum (Chairperson)

NIDN : 0813036602

Email: [email protected]

Ni Made Sukaryati Karma, SH.MH

NIDN : 0829116401

Email :[email protected]

Kristian Ananta Dion (Member)

NPM: 1910121126

Email:[email protected]

ABSTRACT

The tourism sector in Bali is a potential sector to be developed as one of the sources of regional
income. In an effort to increase local revenue, the development program of resource utilization and
tourism potential of the hospitality business area is expected to contribute to economic
development. Based on this, the following problems are studied: how is the validity of hotel booking
transactions in Bali online, and what are the legal consequences of default in hotel booking
transactions in Bali online. The research method uses normative legal research, the source of legal
materials using primary legal materials and secondary legal materials. The results of the study say
that the validity of hotel booking transactions in Bali online, refers to the valid terms of the
agreement Article 1320 of the Civil Code, the concept of the transaction is a sale and purchase which
is an agreement made between the seller and the buyer, between the hotel owner and the customer
or consumer occurs through a third party, namely the Travel party. In accordance with the conditions
for the validity of the agreement transaction in Article 1320 of the Civil Code, that the parties must
agree to enter into a transaction, the parties have legal capacity, certain things and a halal causa. If
the transaction has fulfilled the four conditions, the agreement is considered legally valid. And legal
consequences in the event of default on online hotel booking transactions,then the agreement is
considered invalid, the agreement can be canceled and the agreement is said to be null and void,
meaning that the online hotel booking transaction never happened.

Keywords: Default, Consumer, Transaction, online

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 INTRODUCTION

Background of the Problem

Bali is one of the most popular tourist destinations both among domestic and international
tourists. To support the large number of tourists who come, causing many investors to invest through
the construction of hotels, especially in areas most visited by tourists. The COVID-19 pandemic had
an impact on the decline in the number of hotels in Bali by 25%, but again crept up by 6% in 2022
after the COVID-19 pandemic subsided (BPS, 2022). The increase in hotel occupancy indicates that
there will be an increase in domestic and international tourist visits to Bali in 2022.

Article 33 of the 1945 Indonesian Constitution is the foundation of the national economic
system. Article 33 paragraph (1) of the 1945 Constitution emphasizes that "The economy is
structured as a joint effort based on the principle of kinship." The meaning contained in the
paragraph is very deep, namely that the economic system developed should not be based on
competition and a very individualistic principle.

The development of information technology to date has had a significant impact in helping
the lives of mankind, including one of them to conduct transactions. This shows that there is a
connection with the development of dynamic law following the times, namely the transformation of
business activities from conventional transactions which should have a physical meeting between
business actors (face to face) and a signatory as a form of transaction agreement to no need.

In making a contract, which is regulated in Article 1320 of the Civil Code concerning the
validity of the agreement, it determines that: 1. Agreement of those who bind themselves; 2.
Capacity to make an obligation; 3. A certain thing; 4. A halal cause.

Article 1320 of the Civil Code fulfills two elements, namely the subjective conditions in the
first and second conditions, and the objective conditions in the third and fourth conditions which
have different legal consequences. Electronic transactions in Indonesia are regulated in Law Number
11 of 2008 as amended by Law Number 19 of 2016 concerning Electronic Information and
Transactions (hereinafter referred to as the Electronic Information and Transaction Law).Electronic
Contracts are agreements between parties made through Electronic Systems.

Electronic System. The Law on Electronic Information and Transactions by the State
continues to undergo changes to keep up with the times related to legal certainty for parties
transacting through electronic media.4 In this case there was a loss received by the consumer due to
a violation committed by the business actor, where the business actor had unilaterally canceled the
hotel ticket that had been previously ordered by the consumer. Because of this, a consumer dispute
arises, which is a dispute that covers all aspects of law because of the violation that has been
committed against the consumer.

(RiduanSyahrani, 2010: 203) Through these differences, legal problems arise regarding the
validity of electronic contracts regarding the ability between parties to make an agreement and the
difficulty of identifying the timing of an agreement between the two parties to the transaction.Based
on these problems, this research is conducted to find out how the validity and timing of an online
hotel booking transaction agreement, especially hotels in Bali as one of the most popular tourist
destinations for domestic and international tourists. Based on the above background, the research
will be poured in the form of a normative thesis entitled Legal Consequences of Default in Online
Hotel Booking Transactions in Bali.

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Problem Formulation

1. How is the validity of hotel booking transactions in Bali online?

2. What are the legal consequences if there is a default in an online hotel booking transaction
in Bali.

RESEARCH METHODS

Research Type and Problem Approach

The type of research used in this research is normative legal research. Normative legal
research is research that examines the problems of a legal regulation or legal norm, which is related
to the existence of blurred legal norms. The problem approach used includes a legislative approach
which is an approach carried out by analyzing the rules and regulations related to the legal issues
raised by the author and also using a conceptual approach, namely an approach that provides an
analytical point of view of solving legal problems seen from the legal concepts behind it.

Source of Legal Materials

This research uses primary legal sources, secondary legal materials, and tertiary legal
materials. The sources of legal material in question include:

1. Primary Legal Materials, namely legal materials that have juridically binding force including:
a. Constitution of the Republic of Indonesia Year 1945 b. Civil Code Book III.c. Law Number
11 of 2008 concerning Electronic Information and Transactions.
2. Secondary legal materials, namely legal materials that do not have juridical force, obtained
through the internet, books, literature, papers or theses related to research problems.
3. Tertiary legal materials, namely legal materials derived from online legal dictionaries or
online encyclopedias.

Legal Material Collection Technique

The method of collecting legal materials used in this research is a literature study by tracing
and reviewing the Civil Code Book III agreements and Law Number 11 of 2008 and related
regulations.

Analysis of Legal Materials

The analysis of legal materials used in this research is qualitative analysis. The collection of
legal materials in the research uses document study guidelines. The entire legal material collected
both from primary, secondary, and tertiary legal materials is processed and analyzed through the
preparation of legal materials systematic, categorized and classified, then connected between one
legal material to understand the meaning of legal material and legal interpretation to understand the
meaning of legal material and interpretation from the researcher's perspective to draw descriptive
conclusions.

RESULT AND DISCUSSION

Validity of Hotel Booking Transactions in Bali Online

In everyday life, the term agreement is often used when someone makes a business
agreement, and recently the use of the term agreement has begun to expand its use, even the use of
the term work agreement is commonly used to replace the term work agreement. In the English-
Indonesian dictionary, the word "contract" is synonymous with agreement.

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 Business relations in this case are relations carried out between the Hotel and the Travel
Party based on a business agreement that has been agreed upon by both parties, where the contents
of the business agreement substantially contain the rights and obligations of each party.

Thus it can be concluded that the business relationship occurs after the existence of a
business agreement made by the Hotel and the Travel Party in written form, in which the contents of
the business agreement must contain business terms, as well as the rights and obligations of the
parties and the business agreement must not conflict with the Civil Code and the agreed business
agreement.

All agreements including business agreements made between the Hotel and the Travel party
must be subject to the provisions of the law Book III of the Civil Code, especially in Article 1320 of
the Civil Code which determines that for the validity of an agreement four conditions are needed:
Agreement of those who bind themselves, Capable of making an agreement, Regarding certain
matters or objects, and a halal cause (causal).

If all of the above provisions have been fulfilled, a business agreement will be said to be valid
according to the law, and binding as a law for the parties who make it specifically. (Lalu Husni, 2007:
32) As explained in Article 1338 of the Civil Code which states that: All agreements made legally
apply as laws for those who make them.

The provisions in a business agreement made legally by the parties apply as a specific law
that binds the parties who agree to it (Lex specialis). So, the emphasis on the validity of a business
agreement is very important as a condition to be able to bind the parties.

As a result of the non-performance of obligations arising from the business agreement, the
party who breaks the promise can be declared in default. This can make the injured party claim
compensation through the court.

A valid business agreement is an agreement that has fulfilled the requirements determined by Article
1320 of the Civil Code which determines four conditions that must be met, namely:

1. Agreement of those who bind themselves.

2. Capable to make an agreement.

3. Regarding certain matters or objects.

4. A halal cause (causal).

The purpose of the contents of the article can be explained as follows:

a. Agreement of those who bind themselves

The agreement of both parties, which is commonly called the agreement of those who bind
themselves, means that the parties entering into a work agreement must agree / agree,
agree on the matters agreed upon. What is desired by one party is also desired by the other
party.

b. Capable to make a work agreement

The ability or ability of both parties to make an agreement means that the Hotel and Travel
parties are capable of making an agreement. A person is deemed capable of making an agreement if
he is of legal age. National legal provisions in the Civil Code provide a minimum age limit of 21 years.

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In addition, a person is said to be capable of making an agreement if the person is not mentally
disturbed / sane.

c. Regarding certain matters or objects

The existence of an agreed object in terms of Article 1320 of the Civil Code is a certain thing. The
object of the agreement is the object of a business agreement between the Hotel and the Travel
party, whose legal consequences give birth to the rights and obligations of the parties to a halal
cause (causal). The object of the agreement must be halal, which is not contrary to law, public order
and decency. The type of object promised is one of the elements of a business agreement that must
be clearly stated.

The four conditions mentioned above are referred to as essential / cumulative conditions, meaning
that all of them must be fulfilled before it can be said that the business agreement is valid. The
condition of free will of both parties and the ability or capability of both parties in making a business
agreement in civil law is referred to as a subjective condition because it concerns the person making
the agreement, while the condition that the object of the agreement must be lawful is referred to as
an objective condition because it concerns the object of the agreement. If the objective requirement
is not met, then the business agreement is null and void, meaning that from the beginning the
business agreement is considered to have never existed. If what is not fulfilled is the subjective
condition, then the legal consequences of the business agreement can be canceled, parties who do
not give consent freely, as well as by parents / guardians or guardians for people who are incapable
of making business agreements can request the cancellation of the business agreement to the judge.
Thus the business agreement has legal force as long as it has not been canceled by the judge.

Legal Consequences in the Event of Default in Booking a Hotel in Bali Online.

Default arises or is born from the agreement (agreement) while the tort is born and derived
from the law, not because of a contract based on consent. Unlawful acts are the result of human
actions that are determined by the law. As stated in Article 1352 of the Civil Code: "Obligations born
of law, arise from the law as a law or from the law as a result of people's actions." To be able to say
that the contracting party has made a default or not made a default depends on the contract that
the parties do. In default usually the contract is first done/made, because it is from this work
agreement that will later be able to cause default. Of course, in making an agreement between the
two parties must always be guided by Article 1320 of the Civil Code, regarding the validity of a
business agreement, as for the four conditions that must be met: agreement of the parties to bind
themselves, the ability of the parties to act / make a business agreement, a certain subject matter, a
cause that is not prohibited.Of the four requirements for conducting a valid agreement, if violated by
the Hotel Party, it can lead to default and losses experienced by the Travel Party in a business
agreement made by the parties based on a mutual agreement. If the Travel party defaults and causes
losses to the Hotel due to negligence on the part of Travel, then as stated in Article 1366 of the Civil
Code which states that: "Everyone is responsible not only for losses caused by his actions, but also
for losses caused by negligence or lack of care".

Defaults often occur in a business agreement, but not all business agreements have defaults,
but there are some business agreements that are problematic or have defaults. Usually this default
occurs because one of the parties does not fulfill its obligations, especially in terms of payment
deadlines.If the parties conduct a sale and purchase transaction, then first the parties must bind a
business agreement. Where the binding of a business agreement is carried out before an authorized
official, namely a Notary and the binding of this business agreement aims to make the parties feel

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mutually bound between one another, to be able to fulfill all forms of their obligations. Usually in the
binding of this business agreement there are stages in terms of payments that must be made by the
contract personnel and various kinds of obligations and sanctions if the Travel party is negligent in its
obligations or what is often called default.

From the function of the negligent statement is a legal effort to determine when to
determine when the default occurs. Meanwhile, a negligent statement is a message or notification
from the Hotel to the Travel Party explaining when the Travel Party is expected to fulfill its
performance or obligations. (Purwahid Petrik, 2017: 13)

Based on the business agreement between the Hotel and the Travel party based on a mutual
agreement, the default committed is not much different from defaults on other forms of agreements,
because defaults can arise due to the consequences of an agreement. Where the default in question
is someone who has neglected to fulfill his obligations in the agreement they made. Negligence here
means either negligent in fulfilling some of his obligations, negligent in fulfilling all his obligations /
not performing his obligations at all, negligent in fulfilling what he promised, negligent in doing
something that according to the contract should not and cannot be done.

Article 1446 of the Civil Code stipulates that:

"All agreements made by minors or persons placed under guardianship, are null and void, and upon
prosecution brought by or on their part, must be declared void, solely on the basis of their
immaturity or guardianship.Agreements made by married women and by immature people who
have received a statement of equality with adults, are only null and void, just as these agreements
exceed their powers ".

The legal consequences in the event of default on hotel reservations in Bali can be resolved by means
of non-litigation, that the dispute resolution for default between the Hotel and Travel uses out-of-
court dispute resolution (non-litigation) through several ways of settlement: consultation,
negotiation, mediation, conciliation, and arbitration.

Dispute resolution through arbitration in general, has been regulated in the Law of the Republic of
Indonesia Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution which
applies in the field of trade disputes.

The decision of the District Court may make a ruling on the grounds of default and where no further
challenge can be made. If peace is reached, an arbitrator must make a Deed of Peace signed by both
parties witnessed by an Arbitrator or Panel of Arbitrators.

The stipulation of the Deed of Settlement is registered before the court, and can also be executed by
the Court or the decision, as usual. The decision of the Arbitrator Agreement shall be made in 3
(three) copies and given to each party in one copy, against which the decision that has been legally
enforceable cannot be filed again or the same dispute cannot be filed again with the court.

The settlement of default disputes in this cooperation agreement through Arbitration which is
carried out based on the agreement of the parties, cannot be submitted to the Court because the
Arbitration Award is final and permanent, except in certain cases it can be canceled to the Supreme
Court of the Republic of Indonesia.

And it can also be done by means of settlement by means of litigation.

The definition of justice according to the General Indonesian Dictionary is everything about court
cases. (Poerwadarminta, W.J.S, 1984: 16-17)

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 Litigation dispute resolution implies that the dispute is resolved through a judicial institution.
Conversely, non-litigation dispute resolution implies that the dispute is resolved outside the judicial
institution. The form of non-litigation settlement is fully determined by the community, including the
business community. (Hendry Campbell Black, 1991: 70)

It is a common problem in any country, both in developed and developing countries, that
there is a lot of criticism leveled at the judiciary in resolving disputes in the community and justice
seekers, especially in the field of trade and business, are very numerous and religious. In general,
they criticize the slow judicial process, high costs and convoluted processes. (Tony Mac. Adams,
1997: 155) argues that:

"Law has become a very big American Business and that litigation costs may be doing damage to
nations companies" (That the high cost of litigation is considered a very damaging factor to the
American economy).

The reality of the criticism that the high cost of litigation affects economic life not only in
developed countries, but also in developing countries, including Indonesia, some important criticisms
put forward by (SuyudMargono, 2000: 34) include:

1) Slow dispute resolution;

2) Expensive court fees;

3) Unresponsive judiciary;

4) Court decisions often do not solve the problem;

5) The generalist nature of judges.

Actually, there are still many criticisms that can be described, but from the description above, it can
illustrate how complex the problems that exist in the judiciary, even though its position and existence
as a "pressure valve and the last resort", namely as a pressure valve and the last resort in seeking
truth and justice, can reduce public trust in the judiciary.

The formal and technical nature of the judiciary often results in protracted dispute
resolution, which takes a long time. Especially in business disputes, a fast and low-cost dispute
resolution is required and is an informal procedure.

Time for a hotelier in this case is very valuable. With rapidly developing information
technology, the world is no longer racing with a long time, years or months, but days hours and
minutes, as said by William Irwin Thomson.

From these things it can be seen the importance of time and cost for hoteliers and business
problems are a matter of overall economic development, because the more business transactions
the better the economic development of a country.

The court is a conventional resolution channel to resolve various kinds of disputes, for
example those arising from breach of promise (default). If a dispute due to default arises, then one
party who feels right or harmed by the other party can bring the dispute to the District Court (PN) in
accordance with the applicable civil procedural law, the procedure for filing a lawsuit, answer,
replication, duplicates and others related to court proceedings has been regulated.
(SudiknoMertokusumo, 1993: 10-17)

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 In the Law of the Republic of Indonesia Number 14 of 1970 it is emphasized that the
judiciary is carried out simply, quickly and at low cost. This is certainly intended for efficiency and to
prevent the emergence of unnecessary bureaucracy and regulation. However, judicial institutions are
often criticized for failing to apply the principles of simple, speedy and low cost justice. It is a reality
faced by the Indonesian people that the settlement of a case from first instance to cassation takes an
average of between 7-12 years. (Harahap, 1995/1996:14) This can result in reduced public
confidence, especially among the business community, in the judiciary.

(HandryCapmelBallack, 1991:70)

CONCLUSIONS AND SUGGESTIONS

Conclusion

From the results of the discussion above, the author can draw the following conclusions:

1. The validity of online hotel booking transactions in Bali between the hotel and the travel
party must fulfill the legal requirements of the agreement, namely the parties must have an
agreement, the parties have legal capacity, there are certain things and a halal causa.
2. The legal consequences in the event of default on online hotel bookings in Bali are carried
out in a non-litigation and litigation manner. Of the two alternatives implemented by the
parties to the dispute is through non-litigation (arbitration) on the basis of the reason
because it is considered that the settlement process through non-litigation (arbitration) can
run quickly at a low cost and does not require a long time and the bureaucracy is not
complicated because it is clearly regulated in the Law of the Republic of Indonesia Number
30 of 1999 concerning Arbitration and Alternative Dispute Resolution,

Suggestion

As for what the author can suggest is as follows:

1) To the Community to avoid default disputes, the parties who have agreed to make a business
agreement must obey and comply with the contents of the business agreement that has
been made as a reflection of one of the principles of good faith.

2) To the Government in making a business agreement between the Hotel and Travel is a
standard or standard agreement that the parties before signing the business agreement
should first read and understand the contents of the agreement clearly.

LIST OF READINGS

Black, Henry Campbell, 4986, Black's Law Dictionary, ST. Paul, Minnesota, USA: West Publishing Co.

Hendry Campbell Black, 1991, Blac's Law Dictionary: Definition of the Terms and Phrases of American

and English Juris Prudence, Ancient and Modern. West Publishing Co, ST. Paul.

Husni, Lalu 2007, Indonesian Labor Law, Visi Media, Jakarta

Poerwadarminta, W.J.S., 1984, General Dictionary of Indonesian Language, Balai Pustaka, Jakarta.

SudiknoMertoKusumo, 2007, Law Discovery, Liberty, Yogyakarta.

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---------, 1993, Indonesian Civil Procedure Law, Liberty, Yogyakarta.

---------, 1999, Introduction to Law, Liberty, Yogyakarta.

SuyudMargono, 2000, ADR & Arbitration Institutionalization Process and Legal Aspects, Ghalia

Indonesia, Bogor.

Tony Mec.Adam cited by Yahya Harahap, 1997, Some Overview of Courts and Dispute Resolution, PT

Citra Aditya Bakti, Bandung.

Kitab Undang-Undang Hukum Dagang (KUHD).

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Resolution.

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