Breach of Contract vs. Unlawful Act (Tort) Under Indonesian Civil Law

Breach of contract (wanprestasi) is governed by Article 1243 of the Civil Code (KUHPerdata) and arises from failing to honor a valid agreement between parties, while an unlawful act or tort (perbuatan melawan hukum, PMH) is governed by Article 1365 of the Civil Code and can occur even without a prior contractual relationship.

The key distinction lies in the source of the obligation: breach of contract arises from an agreement, while tort arises from the general duty not to cause harm to others. This distinction matters for law students because it determines the basis of the claim, the burden of proof, and the type of damages that can be sought.