THE INFLUENCE OF MULTICULTURALISM IN THE TRADITION OF CONTRACT THE PRIVATE LAW PERSPECTIVE

ABSTRACT Contract plays important role and valuable to business transactions involving foreign elements specifically in international business transaction. It aims to protect the interests of contracting parties and to provide legal certainty for their business transactions. When contracting parties come from different countries with different legal systems then it certainly affects their traditions in contract. Meanwhile, contracting parties cannot survive with their own traditions of contract because of the need and demand for market share causing them to conduct business transactions. Legal problems in this article are: what is the form of multiculturalism influence on the tradition of contract? and how do the contracting parties from multi cultural legal background overcome differences in their contract? This article uses normative legal research by collecting legal instruments, scientific papers and related case examples. Example of the multicultural influence on the tradition of contract is the New BW of Netherland. In difference legal cultural circumstances, the parties in contract can mutually adjust and align their different traditions of contract with each other as long as there is agreement and good faith from the parties. Adjustment and alignment of contracted traditions leads to shifts in terms of the preparation and validity of a contract. This shift and harmonization sometimes creates problems in the event of a 'gap filling' where the solution depends on the choice of law chosen by the parties concerned. Thus, contracting parties must be more thorough and detailed in arranging international business contracts with different legal systems and traditions. Keywords: multi cultural, influence, tradition of contract