Contracts with No Stamp Valid?

Wednesday, 18 OCtober 2017 , 14:00:00 WIB - Legal Advice

Photo: Tokokitasg

A few years ago I signed an agreement with a colleague. The contract contained my signature and my colleague, and witnesses brought by both parties (me and my colleague). Three years have passed and a good friend of mines said the contract is invalid as I did not sign the contract on top of a stamp.

Is this true. Is the contract invalid as I did not sign the contract on top of a seal?

Rusman, in Jakarta answers:

The agreement is valid if it meets the terms of validity of an agreement. They are:

1. There is an agreement from the parties to bind themselves
2. The parties are competent to make agreements.
3. The existence of a matter agreed upon.
4. The agreement must be permissible or halal.

Stamps in contracts according to the law are document tax. Therefore, stamps don’t function as a means that validates an agreement or a contract. They are tax for documents that will be presented as evidence at court. However, the law obliges stamps in agreements and contracts as a form of compliance with the law on tax.

Best Regards,

Nur Hariandi Tusni, SH., MH.