IMPLEMENTING GOOD FAITH PRINCIPLE BETWEEN DMS PROGROWERS LTD AND TANGAN PERTOLONGAN BALI FOUNDATION: ASSESSING THEIR LEGAL OBLIGATIONS
Globalisation is pushing all countries to unlock the border and let foreign elements enter their countries. This theoretical paper attempts to strengthen the accountability aspect of normative stakeholder theory with a more robust notion of stakeholder engagement derived from the concept of good faith. The contract's connection is wrapped out in the contract and could be placed as an international contract if the parties come from different countries. As an international contract, there is a variety of terms and conditions that would be applied to make sure that all parties understand clearly their rights and obligations. One of the engagements is the relationship between DMS Progrowers Ltd as the company subject to New Zealand law, and Tangan Pertolongan Bali subject to Indonesian law. Both parties are freely binded to the Recognised Seasonal Employment New Zealand program. The type of contract between the parties is arranged by Memorandum of Understanding (MoU). The MoU is familiar with the common law system but not the Europa Continental system adopted by Indonesian Law. The results show that good faith is the most critical element for parties entering the contract. Even though the parties ruled under a different system of law, they honoured and respected each other. The challenge of parties is how they build trust with the other, where there is no single article that mentions the legal consequences if one party did not perform the obligation. Furthermore, the need of good spirit and good faith comes naturally from both parties.
Contract; Good Faith; Legal Systems