Disruption Of Legal Review During the Covid-19 Pandemic and The Role Of Mediation In An Agreement Settlement
Gunawan Raka ,Hamzah ,I Gede Arya Bagus Wiranata
Keywords:
construction; Agreement; Development Companies, Banks, Consumers; Covid-19 ,
Abstract
Physical construction or construction is a field that continues and develops at all times. Construction is an activity that displays the splendor of a country’s civilization. Every era leaves evidence of civilization through development. The construction of office and residential buildings, and even areas, is an activity performed by the private sector and the general public as consumers.Since the end of 2019, China has faced a new virus attacking humans, which has spread to become a global pandemic known as Coronavirus Disease-19 or (Covid-19). All countries are moving behind with the speed at which the virus is spreading and terminating, whereas health Protocol occupies a superior position compared to all other aspects. Covid-19 disrupted all aspects, including the construction sector.The construction agreement was taken, hostage. The developer company failed to build because the bank failed to provide credit due to the precautionary principles; the consumer became a vulnerable party in constructing this legal relationship. This research is normative-analytic by tracing legal theories to solve construction agreement failure due to Covid-19. The results of the study found that the force majeure theory was not fully applicable to this problem. The theory of impossibility is better able to enter into the completion of a construction agreement disrupted by Covid-19. Good faith is an essential asset for lead parties to solutions based on interests. The path of re-negotiation, mediation, or arbitration motivates the court to legitimize the construction agreement's completion