The Binding Power of the Peace Agreement in the Event of a Breach of Contract

Abstract

A peace deed is a legal instrument important for resolving civil disputes,
especially defaults. A peace deed executed in a default lawsuit has
executory power equal to a judge’s decision and can serve as a basis to
request court execution if a party fails to fulfill obligations. This research
aims to determine the peace deed’s binding power, legal protection for the
aggrieved party, and remedies available for breaches. The method used is
normative juridical with legislative and conceptual approaches. Although
prior research exists on peace deeds, this study differs in its results. First,
the peace deed is binding and final for the parties, as it is considered to
have resolved the case and any potential related disputes, thereby
precluding further legal remedies. Second, if a party violates the deed’s
terms, legal protection may be sought internally through agreed sanctions
or fines stipulated in the deed, or externally by filing an executory
application consistent with the deed’s executory nature. Third, breaches
of the deed can also be resolved by renewed mediation between the parties
outside court to obtain an amicable solution. The findings highlight the
deed’s dual role as both a settlement instrument and a basis for
enforcement, while also emphasizing alternative dispute resolution when
violations occur.