Contract Law Aspects of Buying Service Arrangements Outside E-Commerce Platforms: Between Convenience and Risks

Abstract

Jasa titip or buying service (“jastip”) is a service to buy goods from a certain place or destination based on an agreement on the price of goods and service fees. The service is usually offered through electronic media. Jastip providers are not the same with the concept of conventional personal shoppers or sales and purchase activities. Jastip is a growing business in Indonesia with profits reaching up to hundreds of millions of rupiah and many now running these businesses full time. Jastip nowadays is generally carried out through social media without a copy of written contract. Agreements are reached through direct messaging facilities. This of course has implications on the array of risks in the transaction despite the conveniences it may offer. This paper seeks to clarify the basic concept of jastip and explore the legal implications of the utilization of social media for jastip business. It lays out the contract law aspects of jastip transactions, including the legal rights and obligations of the parties, and it analyses the risks and legal challenges.  By using normative research methods, this paper identifies 5 points of conclusion regarding jastip transaction through social media: (1) It is not a supply of goods, but rather a supply of service to accessed goods; (2) It is based more on trust than on a formal written contract; (3) It cannot be categorized as an electronic contract; (4) It also falls within scope of consumers protection law on the basis that the jastip providers liabilities extend to the service of purchasing goods, but not the goods themselves; (5) Risks in the transaction can be minimized by customers by doing transaction through official e-commerce platforms or opting to transact with jastip providers who provide written standard form contracts with more detailed points of agreement on the rights and obligations of each party.