DIFFERENCES BETWEEN COMMERCIAL CONTRACTS AND CONSUMER CONTRACTS

Abstract

In the business law theory, business contracts can be categorized into several types; two of them
that are often used daily are commercial contracts and consumer contracts. Both contracts have
fundamental differences, in which the consumer party in consumer contracts is legally protected
by the Law Number 8 of 1999 on Consumer Protection. This study aims to further differentiate
commercial contracts and consumer contracts by writing down the characteristics and principle
developments of both agreements. Moreover, the liabilities of both commercial and consumer
contracts are also to be identified. This study is a qualitative study that is carried out by
employing the statute approach and conceptual approach. The results disclose that the legal
development of commercial and consumer contracts are distinct in the aspects of principles,
regulations, and scopes; commercial contracts comprise business matters, while consumer
contracts are for consumers or end-users. The liabilities of both commercial and consumer
contracts can be carried out through litigation and non-litigation. However, the filing for a
lawsuit and the non-litigation settlement facilities through the Consumer Dispute Settlement
Agency (BPSK) are different.