The Commercial Law 2005 stipulates the basic principles when carrying out commercial activities and when signing and performing commercial contracts, which the subjects of commercial contracts, traders, and enterprises must obey. To answer the above questions, we invite you to read with Lawyer X to learn through the following article “Principles of commercial contracts”.
Legal grounds
Civil Code 2015
Commercial Law 2005
What is a commercial contract?
Commercial contract is an agreement between traders in establishing, changing or terminating rights and obligations in commercial activities. Commercial contracts are governed by the Commercial Law 2005 and the Civil Code.
According to Article 3.1 of the Commercial Law 2005, commercial activities are defined as “activities for profit-making purposes, including purchase and sale of goods, provision of services, investment, trade promotion and activities aimed at other profitable purposes”.
According to Article 6 of the Commercial Law 2005, traders are defined as including economic organizations legally established; individuals who do commercial activities independently, regularly and have business registration.
According to this definition, individuals and organizations considered as traders include; enterprises established under the provisions of the Enterprise Law; business households and individuals with business registration, etc.
Legal features of commercial contracts
The subject of the contract
The subject of a commercial contract is a trader; can be a legally established economic organization; individuals conducting independent commercial activities, having business licenses, individuals; besides, other organizations with trade-related activities (Based on Commercial Law)
Contract form
Commercial contracts are established based on the agreement of two parties; this agreement may be expressed orally or in writing; or by the conduct of the parties to the contract. However, in some cases, the contract must be established in writing; for example, goods purchase and sale entrustment contract, agency contract; service contract for promotion, advertisement, exhibition, trade fair.
Contract object
In everyday language, goods can be understood as products of human labor; created to satisfy human needs and goals. Based on the legal nature, goods are divided into many different categories such as tangible assets, real estate, …
The subject matter of a commercial contract is goods specified in Clause 2, Article 3 of the Commercial Law.
– All types of movable property, including movable property formed in the future;
– Things attached to the land;
Thus, goods can be existing goods; or goods may form in the future.
Purpose of commercial contract
The purpose of commercial contracts is profit. Since the purpose of the contract is profit, when traders enter into a commercial contract, it is also for profit.
According to the provisions of the Commercial Law, for contracts between a trader and an entity that is not a trader and is not for profit purposes, whether or not to apply the Commercial Law to regulate this contractual relationship is not the case. determined by the contracting party and not for profit.
Content of the contract
The content of the contract is a summary of all the terms that the parties to the contract have agreed to; These terms cover both the civil rights and obligations of the parties when participating. The law promotes the freedom of agreement of the parties; However, the content of the contract must also satisfy the basic terms and be by the provisions of law. Some contents may include in a commercial contract such as:
– The object of the contract: is the current property; or assets to form in the future, jobs to do or not done;
– Quantity and quality of contract objects;
– Price, payment method, payment time, payment place;
– Time and place of contract performance;
– Rights and obligations of the parties to the contract;
– Liability for breach of contract;
– Penalties for breach of contract;
– Others contain.
Depending on the nature of each type of contract, the parties can agree on all the terms that the two parties feel are necessary; or can add new terms or remove them. In addition, to clarify the content of the contract; the parties may make additional contract addendums. If the terms in the contract appendix are contrary to the contract contents; then the terms in the Appendix shall not take effect, unless otherwise agreed by the parties. So, the Appendix has the same legal validity as the main contract.
Principles of commercial contracts
The Commercial Law 2005 stipulates several basic principles that when performing commercial activities as well as when signing and performing commercial contracts; the subjects of commercial contracts, traders, and businesses must comply.
– Above all, the principle of equality before the law of traders in commercial activities;
– Then, the principle of free and voluntary agreement in commercial activities;
– Principles of application of custom in commercial activities established between the parties;
– Besides, principles of applying custom in commercial activities;
– After that, principles of protecting the legitimate interests of consumers;
– Principles of recognizing the legal value of data messages in commercial activities.
These principles are provided in Articles 10 to 15 of the Commercial Law 2005.
Maybe you like
Exemption from liability for breach of commercial contract
Commercial activities of foreign traders in Vietnam
Frequently asked questions
Established on the agreement of the parties to the contract voluntarily, freely, not contrary to the law and social ethics
The two parties negotiate or conciliate to resolve the matter by themselves or, in case of failure, bring it to arbitration or the Court.
– Commodity trading contracts;
– Representative contract;
– Agency contracts;
– Advertising service contract;
– Service supply contract;
– etc,
Services of Lawyer X.
Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.
On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.
Cost: Besides, Lawyer X’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.
Confidentiality of client information: Finally, all brand information of client Lawyer X will be 100% confidential.
Please contact us immediately with questions about the “Principles of commercial contracts in Vietnam”
Contact LSX Lawfirm
Finally, we hope this article is useful for you to answer the question: “Principles of commercial contracts in Vietnam”. If you need any further information, please contact LSX Law firm: at +84846175333 or Email: [email protected],
Conclusion: So the above is Principles of commercial contracts in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
