Warning Letter To Support The Evidence Of Debtor’s Default

In the event that one party has not fulfilled its obligations to the other party based on an agreement or in the case that any debt has not been paid for the goods or services from the creditor to the debtor, the Warning Letter serves as a warning so that the debtor or party who has not carried out its obligations shall carry out its obligations. Then the warning letter shall have its purpose, only if the debtor has not performed its obligation

The term of warning letter itself is not regulated in the Indonesian Civil Code, but the legal basis for a warning letter shall be seen in Article 1238 of the Indonesian Civil Code (KUH Perdata), while related to sanctions contained in Article 1243 of the Indonesian Civil Code.

Article 1238 of the Indonesian Civil Code states:

“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.”

Article 1243 of the Indonesian Civil Code states:

“Compensation for costs, damages and interests for the breach of an obligation only becomes obligatory, if the debtor, after having been declared to be in default, remains in default, or in case of obligations where he must give or produce something, is only given after the lapse of a period of time.”

Therefore, sending the warning letter has the function to give a warning to the debtor to carry out the demands from creditors or parties whose performances have not been fulfilled. If the warning letter is ignored by the debtor or the creditor receives an unsatisfactory response, the creditor may send the second warning by giving a firmer warning letter than before. The warning letter itself can generally be sent 3 (three) times.

If the debtor still does not provide an unsatisfactory settlement, while the warning letter has confirmed the statement of the debtor's negligence and the claim from the creditor, then the debtor's failure to heed the warning letter can be used as evidence that the debtor was negligent and in default. The warning letter also serves as a fulfillment of evidence that the creditor has a good intention by providing a proper warning of the debtor's default and proving the bad faith of the debtor. By not fulfilling the demands or ignoring the demands of the warning letter addressed to the debtor or party who defaults, the creditor or party whose rights are not fulfilled may file further legal steps through filing a civil lawsuit to claim their rights to the debtor and use the warning letter as evidence in court.

Thus, the explanation above is a brief explanation of the Warning Letters as supporting evidence of the Debtor who is in default. 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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