DISPUTE RESOLUTION IN INTERNATIONAL COOPERATION
CONTRACT BETWEEN HOTEL AND ONLINE TRAVEL AGENT
Introduction
Tourism is one of the industries in United States that is widely found and has
developed so rapidly. Tourism activities in United States whose development is very visible,
one of which is in the Province of Bali. This can be seen from 2006, the number of hotels in
Bali as a whole reached 1635, while in 2017 the number of hotels in Bali as a whole reached
2079.
Along with technological developments, tourists can book hotel rooms through travel
agents online. Regarding hotel room reservations made by tourists, there is cooperation
between the hotel and the travel agent, both nationally and internationally and online and
conventionally. The cooperation between the hotel and the travel agent is generally poured
into the form of a cooperation contract.
In practice, the implementation of the cooperation contract between the hotel and the
travel agent does not always go as expected. Often there is a sense of dissatisfaction from
tourists who book hotel rooms through online travel agents. One example is overbooking,
which is a situation where tourists who book a room through an online travel agent do not
get the facilities they ordered because the facility is full or sold out. Another example is an
error made by the travel agent in making a promo so that the promo makes the hotel suffer
losses. Based on the description above, it can be seen the factors that cause default in
international cooperation contracts between hotels and online travel agents as well as legal
efforts made by travel agents related to hotels defaulting on cooperation contracts.
Problem Formulation
Based on the above background, the following problems can be formulated:
What are the factors that cause default in international cooperation contracts between
hotels and online travel agents?
How are legal remedies taken by online travel agents in the event that the hotel
defaults on the agreed international contract?
Purpose of Writing
To find out the causal factors so that the hotel is said to have made a default against
the online travel agent in the international cooperation contract.
To find out the efforts made by online travel agents if the hotel defaults on the agreed
international contract.
Research Methods
In this research, the empirical legal research method is used. Empirical legal research
views law as a social phenomenon (which is different from normative legal research that
views law as positive norms in the national legal statutory system) with a structural
approach and is generally quantified (quantitative).2 In this research, the Statute Approach
and Fact Approach are used in relation to existing problems in society in relation to defaults
in international hotel cooperation contracts with online travel agencies.
Results and Analysis
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
Default of International Cooperation Contract Caused by Online Travel Agencies
Default by one of the parties in the cooperation contract occurs due to rights and
obligations that are not carried out as stated in the contract. Default is the failure of a party
to carry out the obligations stipulated in the contract, including defects in performance or
delays in contract performance.
Default is essentially a situation or event due to one of the parties to the contract
neglecting its obligations.4 The elements of default according to Setiawan are, not fulfilling
the performance at all, being late in fulfilling the performance, or fulfilling the performance
but not properly.5 Furthermore, Subekti states that there are four elements of default,
namely:
• Not doing what he said he would do;
• Delivering what it promises, but not as promised;
• Doing what was promised, but too late;
• Doing something that according to the agreement should not be done.
Regarding the default committed by the online travel agent against the hotel,
based on an interview with Ms. Lisa as General Manager of Lovina Beach Hotel on April
26, 2019, one of them is that the online travel agent made a mistake in making a price
promo. The mistake in making a price promo made by the online travel agent resulted in
hotel room orders by consumers instead causing the hotel to suffer losses. From the results
of the interview, it can be seen that the online travel agent has made defaults as stated by
Setiawan, namely performing achievements but not properly.
• Default of International Cooperation Contract Caused by Hotel Party
In the practice of implementing international cooperation contracts between hotels
and online travel agents, it is possible that the hotel also makes defaults against online travel
agents. Regarding the default committed by the hotel, Ms. Lisa stated that one of them is
overbooking. In practice, overbooking is a situation where the hotel receives more room
orders than the number of rooms available.
As stated by Ms. Lisa, overbooking is caused by delays from the hotel to update
the availability status so that consumers can still book rooms, but in fact the rooms have
been booked in advance by other consumers through other travel agents.
Regarding the default committed by the hotel, it has an impact on consumers who
do not get the facilities they want and cause the hotel and online travel agent to lose their
customers. Furthermore, the element of default committed by the hotel against the online
travel agent is to perform the achievement but late.
Legal Remedies for Online Travel Agencies Non-Litigation Related to Default in
International Cooperation Contracts
Disputes in cooperation contracts are very common in business life. The dispute
begins with a conflict as a form of interaction between the parties in a cooperation contract
that has been very complex, causing one party to feel disadvantaged by the other party. In
international cooperation contracts between hotels and online travel agents, parties to the
dispute, in this case including online travel agents, if they feel aggrieved or there is a default
by the other party, they will generally take legal remedies in a non-litigation manner.
In United States, the definition of the term non-litigation legal remedy is not
explicitly mentioned in the legislation. However, the Law on Arbitration and Alternative
Dispute Resolution states that the parties to a cooperation contract that are in dispute can
resolve their dispute without going through dispute resolution efforts in the District Court.
Based on this understanding, it can be concluded that litigation legal remedies are efforts to
resolve disputes through the District Court, while non-litigation legal remedies are efforts to
resolve disputes without going through the District Court.
Non-litigation legal remedies are legal remedies outside the court that emphasize
peaceful dispute resolution and produce a win-win solution.7 Based on Article 1 Paragraph
(10) of Law No. 30/1999 on Arbitration and Alternative Dispute Resolution, there are
several non-litigation legal remedies, namely consultation, negotiation, mediation,
conciliation, or expert judgment and arbitration.
Sophar Maru Hutagalung, in his book, outlines the meaning of each non-litigation
legal remedy mechanism as follows:
• Consultation
In principle, consultation is a personal or private relationship between one party called a
consultant who gives his opinion on a matter with another party called a client.
• Negotiation
Based on Article 6 Paragraph (2) of Law No. 30 of 1999, negotiation in principle is to
provide an alternative to the parties concerned to resolve the problems arising between them
by agreement, where the results of the agreement are put into writing as a commitment that
must be implemented by both parties.
• Mediation
Based on Article 6 Paragraphs (3) to (5) of Law No. 30 of 1999, Mediation is a legal effort
that involves a third party, either an individual or an independent institution that is neutral as
a mediator. The mediator has the authority to assist and find solutions to the parties in
dispute, but the mediator is not authorized to give a decision on the object in dispute.
• Conciliation
Conciliation is a settlement of disputes by way of deliberation, the essence of which is to
avoid litigation and also the legal consequences arising from a court decision. In conciliation
legal efforts there is a conciliator who is authorized as a facilitator in terms of facilitating the
arrangement of the place and time of the meeting, directing the conversation, so that the
parties can find a dispute resolution solution.
• Arbitration
Arbitration means one of the ways to resolve the parties' dispute outside the court. This is
done because the parties are based on a written arbitration agreement that they agree to, to
take arbitration efforts in terms of resolving disputes. The agreement in the form of an
arbitration clause is contained in a written agreement in an agreement made before the
dispute is usually referred to as an arbitration agreement.
Furthermore, Frans Hendra Winarta outlines the meaning of each non-litigation legal
remedy as follows:
• Consultation is an effort made by an individual or person to get the opinion they need
from a consultant.
• Negotiation is an effort to resolve disputes without going to court or non-litigation
based on good cooperation between the parties to reach an agreement.
• Mediation is an effort to resolve disputes by using a mediator in negotiations
between the parties in order to reach a mutual agreement.
• Conciliation is an attempt by the parties to resolve disputes with the help of a
conciliator to obtain a solution agreed by the parties.
• Expert assessment is an assessment conducted by experts who have certain
competencies that are technical in nature.
Non-litigation legal remedies are carried out by the parties because they consider
several reasons when compared to litigation legal remedies, one of which is for reasons of
time efficiency and costs incurred. In addition, in contrast to the results of non-litigation
legal remedies which generally result in a win-win solution for the parties to the dispute, the
results of litigation legal remedies will be widely publicized to the public, thus risking the
good name and reputation of each party. Moreover, cooperation in the tourism sector really
requires trust from the public for the continuation of doing business.
In the practice of implementing international cooperation contracts between hotels
and online travel agents, based on interviews with Ms. Soraya as Accomodation Service
Agoda International Pte Ltd. Representative Office and Ms. Lisa as General Manager of
Lovina Beach Hotel, it is stated that in the event that the hotel makes a default, the online
travel agent will make non-litigation legal remedies through negotiations in a family manner
in two ways, namely:
The defaulting hotel is asked to find a similar or higher replacement hotel in the
same area. If there is a price difference, it will be borne by the hotel.
Online Travel Agencies that find alternative hotels, but with compensation in the
form of Penalty (the defaulting hotel must pay for one night's stay).
In practice, non-litigation legal remedies that have been applied by online travel
agents related to disputes with hotels are legal remedies in the form of family negotiations.
Non-litigation legal remedies are chosen and used, namely the online travel agent and the
hotel because they are related to the reasons for the efficiency of time and costs incurred.
Court proceedings are a costly and time-consuming process. The conventional court system
is naturally adversarial, often resulting in one party being the winner and the other party
being the loser. Some even assume that there is inefficiency and unfairness in resolving
disputes through the civil process (civil procedure was neither efficient nor fair).10 In
addition, litigation legal remedies result in decisions that are publicized to the wider
community, so that they can affect the credibility and good name and even the reputation of
the company of each party to the dispute. Moreover, the tourism business really needs trust
from the community in the sustainability of the business of the parties. The results obtained
in non-litigation dispute resolution, in general, are the achievement of a win-win solution,
the parties to the dispute feel satisfied and fair, so that the agreement which is the settlement
of the parties' dispute can be accepted and implemented by the parties.
Legal Efforts of Online Travel Agencies in Litigation related to Default in
International Cooperation Contracts
In international cooperation contracts, including service trade contracts, such as
international cooperation contracts between hotels and online travel agents, contracts often
do not work as expected. For example, there are defaults that even end in conflict or dispute.
According to Huala Adolf, the legal provisions governing international cooperation
contracts are:
• National Law (including a country's laws and regulations either directly or
indirectly related to the contract);
• Contract documents;
• Customs in the field of international trade related to contracts;
• General legal principles of contract;
• Court decision;
• Doctrine;
• International agreements (regarding contracts).
From the provisions put forward by Huala Adolf, it can be understood that
litigation dispute resolution can refer to one of these legal provisions as outlined in the
contract document or national law. In relation to international cooperation contract
documents, commonly referred to as international business contracts, various clauses are
generally regulated, such as:12
Description, Quantity and Price;
Payment Requirements;
Packaging Settings;
Transportation and Delivery of Goods;
Insurance;
Intellectual Property Rights;
Compensation;
Cancellation and Force Majeure;
Arbitration;
Choice of Law and Choice of Forum.
The choice of law and choice of forum in electronic transactions is a very
complex and complicated issue, considering that the transactions carried out by the parties
are not a few that cross the borders of a country, and involve parties who have different
nationalities. Therefore, the determination of the choice of law applicable to the parties and
also relates to the choice of forum for the proposed dispute. Against this, in the principle of
contract law there is the principle of freedom of contract which allows the parties to freely
determine the form and content of the desired agreement. This includes determining in the
contract relating to the choice of law and choice of forum.
Based on the description above, the choice of the parties determines the law
chosen by the parties. The law will be recognized as "the proper law of conduct" and also
recognized as "the proper of contract." The principles in International Civil Law (ICC)
become the legal principles applicable in contracting for the parties when the parties do not
determine the choice of law in the contract they make.
Based on this clause, it appears that the parties agree to use national law, in this
case Singapore law and the Singapore Courts, as the legal basis for international cooperation
contracts. In the event of a dispute, the online travel agent can file a litigation remedy
through the Singapore court using Singapore law as stated in the contract.
In practice, according to both Ms. Soraya and Ms. Lisa, default disputes in
international cooperation contracts between hotels and online travel agencies where they
work have never been resolved through litigation.
Conclusion
Default of the online travel agent against the hotel in the international cooperation
contract is caused by factors the lack of care on the part of online travel agents that
causes imperfections in fulfilling promises, namely errors in making hotel price
promos. On the other hand, the hotel's default is caused by delays in delivering the
latest conditions related to room availability and hotel facilities, due to human
resources factors, especially communication that is not smooth.
Legal efforts made by online travel agents against hotels related to defaults in
cooperation contracts are by filing litigation and non-litigation legal remedies.
Legal remedies for compensation claims in litigation, as stated in the contract
document, have never been carried out because what has been done is non-litigation
legal remedies in a family manner through negotiations, namely agreed by the hotel
to find a similar or higher hotel in the same area related to overbooking defaults.
