Legal Contract of Stall Lots to Support Business and Merchants Security

Abstract

Making a contract for business needs to follow the legal procedures to protect the merchants from
any problems in future. This study was conducted to seek the legal contrct of stall lots in a traditional
market of Medan Municipality of North Sumatra, Indonesia. This research used a qualitative research
with questionnaires and interviews with traders and employees of Local Government Corporation
(PD Pasar Petisah) of Medan Municipality. It collected data from the legal formal procedures of
leasing stall lots in the forms of contracts in the lease agreement documents. Data obtained revealed
that legal contract of stall lots indicate that the agreement between the Merchants and Local
Government Corporation Offfice (PDP) has been made in the legal procedures; the lease agreement
applied the Indonesian Law article 1548 of the Civil Code. It is such an agreement with which one
party binds itself to give the other party the benefits agreement. It mentions the lease period of time
and with payment of contract at which the party will be later able to pay.