Qualification of Force Majeure in the Covid-19 Pandemic as a Reason for Cancellation of Contract

Engagement is a legal relationship that occurs between the parties who have agreed on the matters set forth in the contract that creates an obligation to fulfill the contents of the contract. However, there is a situation where one party is unable to perform its accomplishment due to event occur against its will, known as force majeure. In dealing with Covid-19, Presidential Decree No. 12 of 2020 concerning the Determination of Non-Natural Disaster for the Spread of Corona Virus Disease 2019 (Covid-19) as a National Disaster rise public speculation about whether the Covid-19 pandemic can qualify as force majeure due to the effects of the Covid-19 pandemic disrupting activities in the business sector which resulted in the inability to fulfill accomplishment, thus making the Covid-19 pandemic an excuse to cancel the contract. Research method in this research is juridical-normative legal research. The results of this study that the Covid-19 pandemic cannot be used as a reason for contract cancellation because it must analyzed the force majeure clause states in contract first, and the real conditions to fulfill obligations in the contract. With the Covid-19 pandemic possible to conduct negotiations to postpone, change or cancel the contents of the contract.