21/08/2026
Can You Cancel a Contract After Signing?
Yes, but not simply because you changed your mind.
Once a contract is validly made, it generally binds the parties to the agreed terms. Under Indonesian law, this principle is reflected in Article 1338 of the Indonesian Civil Code (KUHPerdata).
So, what happens if you want to cancel it?
It depends on the circumstances.
A contract may potentially be ended when:
• Both parties agree to terminate it
• The contract contains a termination or cancellation clause
• One party breaches the contract
• There is a valid legal ground for cancellation
There is also an important distinction between terminating a contract and having a contract declared void or voidable. Certain defects in the requirements for a valid agreement may affect its legal validity.
What you should NOT do is simply stop performing your obligations without first checking your legal position. Doing so may constitute a breach of contract and potentially lead to penalties, damages, or other legal claims.
Before cancelling a signed contract, check:
What does the termination clause say?
Is there a breach?
Is there a notice requirement?
Are there penalties or compensation?
Is there a legal basis for cancellation?
A signed contract may not always be impossible to end, but you need the right legal basis and procedure.
Need help reviewing your contract before you cancel?
SATU Law Firm
The for Your Business
We make it simple.
📍 Visit us: Jalan Sunset Road Timur No. 8, Kuta, Bali.
📞 WhatsApp: (+62) 877 8558 3838
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