Commercial contracts is very important to ensure the legal safety of the parties in the contract, to help the parties bind their obligations, ensure the rights and perform the Contract, limit the occurrence of disputes.
In the period when Vietnam’s economy is currently developing, attracting foreign business in Vietnam, commercial activities of traders take place excitingly.
Because of the importance of the Contract in general and the Commercial Contract in particular, Apolat Legal wants to share the important points in the Contract that the participants in the Contract should be considered when drafting, reviewing, negotiating and signing contracts.
Based on Article 398 of the 2015 Civil Code, the content of the Contract should contain the following contents:
1| The object of the contract
The object that the Contracting Parties are aiming at. Example: Contract of sale and purchase of goods, subjects of goods/products; Service contract: service to be performed.
2| Quantity and quality
Specifying the number of goods/products, types and quality of products/goods to meet. Specifying methods of goods inspection and time of quantity and goods inspection.
3| Price and payment method
Contract value, payment method and payment schedule in the Contract; conditions for payment, excluded expenses in the Contract for the Party with the payment obligation.
4| Term, location, the method of contract
Regulations on contract implementation time: the start time and the end time, conditions for the extension of the contract term;
Contract execution location: Place of delivery, place of service or location for the Parties to conduct production and processing of goods …
Method of contract implementation: How to provide the service, product/goods by the Party.
5| Rights and obligations of the parties
The rights and obligations of the Parties in the Contract, clearly state each right and obligations to limit the occurrence of disputes and conflicts in the process of implementing the Contract.
6| Responsibilities for breach of contract
Define the penalty conditions when the Parties breach terms of the Contract, the terms of compensation, the way to determine the damage and the time when the Violating Party pays the penalty and damages.
7| Dispute resolution method
Regulations on dispute settlement methods: the parties negotiate, reconcile or resolve disputes at the Court or arbitration bodies selected by the Parties.
The above are the basic and important contents when the parties perform the drafting of the Contract to be considered and focused. One of the general provisions which are not specifically and clearly defined will easily make disputes and difficulties for the Parties in the process of entering into the Contract.
Apolat Legal hope the above-mentioned contents also partly provide businesses with an overview and importance of the Contract when implementing transactions in the current society.
If you have any questions or require any additional information, please contact Apolat Legal – An International Law Firm in Viet Nam.
This article is for general information only and is not a substitute for legal advice.