Wanprestasi (breach of contract) , Bali villa glossary

In one sentence. The legal term for breaching a contract, meaning delay, partial or defective performance. Unlike force majeure it gives a right to penalty, damages and termination.

Wanprestasi (from the Dutch wanprestatie) is non-performance under Arts. 1238–1243 of the Civil Code. The debtor did not perform, performed late, partially or not as agreed. For a villa buyer the main case is a missed completion date.

The path starts with a written demand (somasi) with a reasonable deadline, and from then the debtor is formally in default. Next comes a claim for the contractual penalty. If that is refused, there is mediation or court (for these sums and parties usually the Gianyar/Denpasar district court). Force majeure (overmacht) excuses liability only for events that could not be foreseen or prevented, and only if the contract provides for it.

Prevention beats litigation. Put a specific date and penalty figure in the contract (in DOMA projects 0.5% per day for blocking the investor's access to the property, plus the contractor's deadlines and penalties under the construction contract), and use act-based payments so a delay is not accompanied by your money.

Updated 2026-09-20. Not a public offer. Regulations change, so we cite enacted acts only and update the entry when they do.

Wanprestasi (breach of contract)

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