What are rights and obligations of parties to service contracts in Viet Nam?
The service industry increasingly contributes greatly to the national economic development. To further facilitate the development of the service industry, it is required to have specific and clear legal provisions that well protect the rights and obligations of the parties to the service supply contracts. Let’s find out this issue with Lawyer X using the following scenario: “Dear Lawyer! I am preparing to open a beauty salon in Viet Nam, as far as I know, this business is not a kind of trade goods activities but rather a kind of service activities, so when I provide this service to my clients, what are my legal rights and obligations? What are my clients’ obligations? Thank you for your advice! “
Legal grounds
Commercial Law 2005
What is provision of service? What is service contract?
Provision of services means commercial activities whereby a party (the service provider) is obliged to provide a service to another party and receive payment; the service-using party (customer) is obliged to pay to the service provider and use the service as agreed
Service contract means agreements between parties, whereby a party (the service provider) is obliged to provide a service to another party and receive payment; the service-using party (customer) is obliged to pay to the service provider and use the service as agreed
Forms of service contracts:
– A service contract shall be expressed in verbal or written form or established with specific acts.
– For those types of service contract which are required by law to be made in writing, such requirement must be abided by.
Rights and obligations of parties to service contracts
*Rights of traders to provide and use services
– Unless otherwise provided for by law or treaties to which the Socialist Republic of Vietnam is a contracting party, traders shall have the following rights to provide services:
+ To provide services to residents in Vietnam for use in the Vietnamese territory;
+ To provide services to non-residents in Vietnam for use in the Vietnamese territory;
+ To provide services to residents in Vietnam for use in foreign territories;
+ To provide services to non-residents in Vietnam for use in foreign territories.
– Unless otherwise provided for by law or treaties to which the Socialist Republic of Vietnam is a contracting party, traders shall have the following rights to use services:
+ To use services provided in the Vietnamese territory by residents in Vietnam;
+ To use services provided in the Vietnamese territory by non-residents in Vietnam;
+ To use services provided in foreign territories by residents in Vietnam;
+ To use services provided in foreign territories by non-residents in Vietnam.
– The Government shall specify the residents and non-residents that are subject to the implementation of tax and import-export management policies toward various types of services.
*Services banned from business, services subject to business restrictions and services subject to conditional business
– On the basis of socio-economic conditions in each period and treaties to which the Socialist Republic of Vietnam is a contracting party, the Government shall specify the lists of services banned from business, services subject to business restrictions and services subject to conditional business as well as the conditions for providing such services.
– Services subject to business restrictions and services subject to conditional business shall be provided only when these services and parties involved in the provision thereof fully satisfy the conditions defined by law.
*Application of urgent measures to activities of providing or using services
Where it is necessary to protect the national security and other national interests in compliance with the Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party, the Prime Minister shall decide on application of urgent measures to activities of providing or using services, including temporary ban on the provision or use of one or several types of service or other urgent measures to one or several particular markets for a definite time period.
*Obligations of the service providers
Unless otherwise agreed, the service provider shall have the following obligations:
– To provide services and fully perform related jobs in accordance with agreements and the provisions of Commercial law;
– To preserve and hand back to their customers documents and means supplied to them for the service provision after the completion thereof;
– To promptly notify to their customers in cases where information and documents are insufficient and means are inadequate for completion of the service provision;
– To keep secret information they know in the course of service provision if so agreed upon by the parties or provided for by law.
*Obligations of the service providers according to performance result
Unless otherwise agreed, if the nature of the type of service to be provided requires a service provider to achieve a certain result, the service provider must conduct the service provision with a result appropriate with the terms and purpose of the contract. Where the contract does not specify the standards of result to be achieved, the service provider must conduct the service provision with a result compliant with the common standards applicable to such type of service.
*Obligations of the service providers to make the best effort
Unless otherwise agreed, if the nature of the type of service to be provided requires a service provider to make the best effort to achieve a desired result, the service provider shall perform the obligation of service provision with the best effort and the highest capacity.
*Cooperation among service providers
Where under a contractual agreement or on the basis of practical circumstances, a service is jointly performed by many service providers or performed by a service provider in cooperation with other service providers, each of the said service providers shall have the following obligations:
– To exchange and communicate to each other information on the performance progress and its demands related to the service provision, at the same time to provide services at a proper time and by an appropriate mode so as not to impede operations of other service providers;
– To carry out any necessary cooperation with other service providers.
*Obligations of customers
Unless otherwise agreed, customers shall have the following obligations:
– To pay charges for provision of services as agreed upon in contracts;
– To provide in a timely manner plans, instructions and other details so that the provision of services can be made without any delay or interruption;
– To cooperate with service providers in all other matters necessary for the proper provision of services;
– Where a service is performed jointly by many service providers or by a provider in coordination with other service providers, customers shall be obliged to coordinate operations of these service providers so as not to impede the work of any service provider.
*Time limit for completion of services
– Service providers must complete their services within the time limits already agreed upon in contracts.
– Where there is no agreement on the time limits for completing services, service providers shall have to complete their services within a reasonable time limit on the basis of taking into account all conditions and circumstances which service providers knew at the time the contracts were entered into, including any specific needs of customers regarding such time limit for service completion.
– Where a service can be completed only when the customer or another service provider satisfies certain conditions, the provider of such service is not obliged to complete his/her service until those conditions are satisfied.
*Customers’ requests for changes during the provision of services
– During the provision of services, service providers must satisfy all reasonable requests of their customers for changes during the provision of services.
– Unless otherwise agreed, customers must bear reasonable expenses for the satisfaction of their requests for changes.
*Continued provision of services after the expiration of the time limit for completing the provision of services
If services, after the expiration of the time limit for completing the provision thereof, are not yet completed, and if customers have no objection, service providers shall have to continue providing the agreed services and compensate for damage, if any.
* Service charge rate
Where there is no agreement on service charge rate, no agreement on methods of determining service charge rate, and also there is not any indication to service charge rate, the service charge rate shall be determined according to the charge rate of the same type of service under similar conditions on mode of provision, time of provision, geographical market, mode of payment and other conditions which can affect the service charge rate.
*Time limit for payment
Where there is no agreement and there exist no customs pre-established between the parties concerning payment for services, the time limit for payment shall be the time when the provision of services is completed.
Services of Lawyer X
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Frequently asked questions
Yes! The service provider shall have the obligation to provide services and fully perform related jobs in accordance with agreements and the provisions of Commercial law;
A service contract shall be expressed in verbal or written form or established with specific acts. For those types of service contract which are required by law to be made in writing, such requirement must be abided by.
On the basis of socio-economic conditions in each period and treaties to which the Socialist Republic of Vietnam is a contracting party, the Government shall specify the lists of services banned from business, services subject to business restrictions and services subject to conditional business as well as the conditions for providing such services.
Conclusion: So the above is What are rights and obligations of parties to service contracts in Viet Nam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com