Common Contracts
1 similar Letter of Undertaking contracts
KEKUATAN EKSEKUTORIAL KREDITUR ATAS JAMINAN DALAM PERJANJIAN LETTER OF UNDERTAKING1Letter of Undertaking • February 1st, 2021
The Letter of Undertaking is included in an additional agreement (accesoir) and is an alternative third party guarantee in the form of a statement letter of being able to fulfill an engagement the debtor undertakes. Guarantee Letter of Undertaking is a new phenomenon in intangible guarantee law and is generally used as financing for large projects, but the problem in this Letter of Undertaking is not regulated in a clear substance in legislation so that its legal position is in law. guarantees Indonesia has no legal certainty. Which is where legal certainty regarding the Letter of Undertaking is important because if there is no standard form in the legislation it will have the potential to harm both parties, especially the creditor in terms of execution. The regulation regarding LoU is limited to what is written in it, if it is guided by Article 1824 of the Civil Code that the responsibility of the insurer cannot be presumed but must be stated clearly and firmly. In execution guarantee
