Demanding The Liability Or Debt Of The Debtor Through A Warning Letter
A warning letter is made with attention to warn the debtor to perform his liability. Warning letters are legal steps that may be taken when the debtor has not fulfilled his obligations or paid his debts to the creditor. A debtor is said in default if the debtor is late for his obligation, does not excel, and is mistaken in carrying out his performance or liabilities. In such cases, the creditor may send a warning letter to demand the debtor to carry out his obligations.
The warning letter also has a function to determine the debtor is in a state of negligence. A statement in "negligence" is very important for the creditor and will bring huge legal consequences for the debtor. Article 1238 of the Indonesian Civil Code stipulates that: “The debtor shall be deemed in default, either by an order or other similar deed, or pursuant to the obligation itself, where such obligation stipulates that the debtor shall be in default, upon failure to deliver within the stipulated time period”.
Apart from stating that the debtor was negligent in carrying out his obligations, the purpose of giving the warning letter is to warn the debtor to fulfill the creditor's demands. When the debtor is proven to be in default, it is required that the creditor as the party with the right of asking the obligation to provide a warning letter to the debtor before proceeding with legal measures for filing a breach of contract lawsuit through an authorized court. The debtor's default causes legal consequences that the creditor has the right to demand the following things from the debtor:
- Compensate for losses suffered by creditors or other parties who have the right to receive such performance (Article 1243 of the Indonesian Civil Code);
- Termination of the contract accompanied by payment of compensation (Article 1267 of the Indonesian Civil Code);
- Transfer the risk since the default occurred (Article 1237 paragraph (2) of the Indonesian Civil Code);
- Bear the cost of the case if the case is brought to court (Article 181 paragraph (2) HIR).
Thus the explanation above is a brief description of demanding the liability or debt of the debtor through Warning Letters. If you are interested in knowing more about the Warning Letters, you may contact our law office, Suria Nataadmadja & Associates Law Firm.
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