How to resolve legal conflicts about contracts with foreign elements?

by HaTrang

Inter-state exchanges give rise to civil relations between individuals; legal entities of different countries. To record the connection between the parties; The form of the contract is the key factor. But due to foreign factors, conflicts in contracts still occur. Let’s learn with LSX Lawfirm about how to resolve legal conflicts about contracts with foreign elements through the article below.

Legal grounds

Civil law 2015

What is Contractual Conflict Resolution?

A conflict of laws on contract is a phenomenon where two or more legal systems of different countries can apply to regulate the contractual relationship. The question is which country’s law to apply to determine the legality of that contract.

So the settlement of legal conflicts over contracts is the determination of the legal basis for governing the contractual relationship with foreign elements. The determination of the legal basis is based on the substantive method to directly apply the regulation; or rely on the conflict method to determine the legal system governing contractual relations with foreign elements.

What legal sources for resolving conflicts of law about contracts?

Sources of international law

The source of international law is a system of principles; legal provisions governing contractual relationships. The international legal source system is mainly in the form of international treaties; legislation of the European Union; international organizations and international trade practices.

For Vietnam beside the popular international treaties that Vietnam has acceded to is the Vienna Convention 1980 of the United Nations on contracts for the international sale of goods bilateral treaties, mainly mutual legal assistance agreements that Vietnam has signed with other countries, also contribute to the legal basis for uniformly adjusting legal conflicts over contracts.

National legal source

Each country has its own legal system to govern contracts with a foreign element, national legislation includes legal documents custom and precedent, national law seem to be the basic and common source of international law is the basis for determining the legality of the contract and ensuring that the agreement of the parties is effective implementation It also sets out the limits of the agreement.

Besides, Vietnam has not developed a separate international legal code; The main source of law governing contractual relations with foreign elements is the system of legal documents from the Constitution to laws; laws and legal documents under the law.

So the legal basis for adjusting contracts with foreign elements is now quite diverse, rich for the parties participating in the contractual relationship can choose; or applicable jurisdictions when settling disputes.

Principles of conflict resolution on contracts

Principles of settlement according to the law applicable to the contract

The essence of a civil relationship is an agreement between the subject parties in that civil relationship so in any civil relationship, priority is for the agreement of the parties in the civil relationship.

Besides, the law to resolve conflicts of law about contracts is the law of the country in which the parties to that contractual relationship agree to define and can be in the contract or other forms.

So, this means that the law first allows; and respect the agreement of the parties; Choosing which legal system to apply to the contract, that legal system will determine the resolution of the conflict.

Exceptions to the law applicable to the contract

However for political reasons as well as other reasons to ensure the sovereignty of each country, in some cases, the parties’ agreement; to choose the applicable law is not recognized.

Accordingly Vietnamese law, a contract with foreign elements will be considered legal if such contract satisfies the conditions on form and accordingly the provisions of law that the parties have agreed to choose.

Current Vietnamese law has regulations on types of contracts whose form must be in writing; notarized, authenticated, registered. Although the 2015 Civil Code recognizes the principle of law chosen by the parties to apply to the form of contract; but at the same time, the law also provides an exception for electronic contracts and contracts relating to real estate. In this case the contract is independent of the law that the parties chose and the law of the place where the contract concluded.

Contact LSX Law firm

Finally, hope this article How to resolve legal conflicts about contracts with foreign elements, If you have any questions please contact Lawyer X for quick and best legal services: +84846175333 or email: hoangson@lsx.vn.

Related questions

What is an electronic contract?

An electronic contract is a contract established in the form of a data message; and the legal validity of an electronic contract cannot be denied simply because it is represented as a data message.
So data messages can be considered as valid as text; as valid as the original and as valid as evidence.

What is the form of the contract?

The form of a contract is understood as the way of recording, storing and transmitting the contents of the contract; 
or the form of the contract is the expression; contains the terms agreed upon by the subject parties.

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