NONCONFORMITY OF VANILLA BEAN QUALITY IN A SALE AND PURCHASE AGREEMENT AS BREACH OF CONTRACT AND ITS LEGAL CONSEQUENCES (SUPREME COURT DECISION NUMBER 561 K/PDT/2024)

Abstract

This study examines a dispute concerning the sale and purchase of vanilla beans in Temanggung District Court Decision No. 44/Pdt.G/2022/PN Tmg, which was upheld on appeal and in Supreme Court Decision No. 561 K/Pdt/2024. It aims to determine whether non-conformity in the quality of the goods constitutes a breach of contract and whether the resulting legal consequences are consistent with the Indonesian Civil Code. Using a normative juridical method with statutory and case approaches, the study finds that the quality discrepancy initiated the dispute, but the breach was primarily established by the seller's failure to fulfil a written undertaking dated 27 February 2021 to replace the goods or refund the purchase price by 15 May 2021. The order to refund IDR 506,213,400 and pay interest of IDR 156,926,154 has a legal basis in Articles 1243, 1246, and 1267 of the Civil Code. However, the applicable interest rate and the commencement of the interest period require further examination in light of Article 1250. This study highlights the importance of clearly specifying product quality and documenting obligations and deadlines for resolving disputes in sale and purchase agreements.