The Principle of Balance as a Tool for Preventing Breach of Contract in Business Agreements

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Published Nov 4, 2026
https://doi.org/10.34012/jihp.v9i2.8716
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Vol. 9 No. 2 (2026): JURNAL ILMU HUKUM PRIMA

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Montayana Meher
Faculty of Law, Universitas Medan Area
https://orcid.org/0009-0008-0151-2979
M. Citra Ramadhan
Faculty of Law, Universitas Medan Area, Indonesia

Abstract

Breach of contract in business agreements can lead to complex legal consequences, ranging from financial losses and damage to business reputation and relationships to protracted and costly legal disputes. Preventive measures from the earliest stage of the contractual relationship are therefore crucial. This study aims to analyze the principle of balance as a tool for preventing breach of contract in business agreements. It employs a qualitative approach based on library research of primary legal sources, namely the Indonesian Civil Code (KUHPerdata), and secondary sources, including books, journals, and related scholarly articles. The forms of breach discussed are failure to perform, improper performance, and delayed performance. The analysis shows that the principle of balance can be implemented through five approaches: background checks on prospective partners, sound contract drafting, balance of performance between the parties, the application of good faith, and open communication. These approaches reinforce one another in creating fair, proportionate, and mutually beneficial contractual relationships, thereby reducing the risk of breach from the pre-contractual stage through to contract performance. The principle of balance thus serves not only as a normative principle in contract law but also as an effective practical mechanism for preventing breach of contract and fostering sustainable business cooperation.

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How to Cite
Meher, M., & M. Citra Ramadhan. (2026). The Principle of Balance as a Tool for Preventing Breach of Contract in Business Agreements. Ilmu Hukum Prima (IHP), 9(2), 235–245. https://doi.org/10.34012/jihp.v9i2.8716

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