Contract plays an important roles in business transaction. Written contract provide individuals and businesses a legal document reflecting agreement, expectation and mechanism to resolve potential disagreement or disputes. Therfore, it is really important to draft and review the contract before signing.
According to Article 24 of The Commercial Law 2005, a commercial contract can be expressed either verbally, in writing or in a specific manner. However, certain type of contract has to follow forms requested by laws, more specificially: in writing. Such form of contract serves the purpose: to facilitate tax administration or customs procedures, protect legitimate rights and interests of involved parties etc
In general, the contents of the contract are terms that the parties discuss and approve to ensure the rights and obligations arising from both parties. According to Vietnam law, the parties may agree to the basic terms as following:
- Information of the parties to the contract: name, address of buyer and seller, intermediary, transportation (if any);
- Valid time of the contract;
- Information on goods;
- Quantity, quality of products, conditions for preservation (if any);
- Deposit (if any);
- Price of the product, method of calculation and payment, payment term, level of compensation in case of late payment;
- Rights and obligations of the parties;
- Penalties for breach of contract;
- Additional terms, changes or cancellations;
- Other terms agreed by the parties that are not against the law.
In addition, a contract should ensure the following points to be covered:
- Use right legal terms or terminology;
- Foresee the future scenarios;
- Describe the specific matters;
- Clearly mention obligations;
- Obtain a balance between parties involved.
Therefore, the obstacles to draft a commercial contract is to consider the purpose of the contract, transaction type, significance of the deal, industry, Vietnam legal requirements and expectation of the self Company. It causes that each different business transaction is not a compilation of standard terms and conditions.
Such requirement to a contract is really a tough task for Companies and individuals that there is not the qualified staff yet to be in charge of drafting and reviewing the Contract at the same time. Meanwhile, the contract size is big and there are many potential risks which can be exploded in dispute. Hence, the client is recommended to seek help from professional contract lawyers in Vietnam to draft or review contract.
Apolo Lawyers is a reputable law firm selection. With a team of broad experienced lawyers and enthusiastic staff, Apolo Lawyers clients will no longer bother about a legally enforceable contract and protect the client against legal disputes.
More information can be found on the website: www.apolo.com.vn