In business activities and civil transactions, contract is the most important legal basis for establishing the rights, obligations, and responsibilities of the parties. However, in reality, many individuals and businesses do not have an in-house legal team and lack experience in drafting contracts, leading to risks of disputes, financial losses, and time-consuming consequences.
FundGo Law Contract Drafting Services built to help customers obtain Tightly drafted contract – compliant with regulations – minimizes legal risks, appropriate for each specific transaction.
What is a contract? Types of contracts under Vietnamese law
What is a contract?
According to Article 385 of the Civil Code 2015, A contract is an agreement between parties to establish, modify, or terminate civil rights and obligations.
The contract may be concluded by specific text, speech, or behavior, in which many types of contracts must be established in writing in accordance with the provisions of the law.
Common types of contracts under Vietnamese law
Based on the 2015 Civil Code and specialized laws, contracts are commonly classified as follows:
- Civil contract: asset loan agreement, asset lease agreement, asset borrowing agreement, asset donation agreement…
- Commercial contract (according to the 2005 Commerce Law): contracts for the sale of goods, contracts for the provision of services, agency contracts, distribution contracts, etc.
- Employment contract (according to the Labor Code): establishing the relationship between employees and employers.
- Construction contract, assignment agreement, Business Cooperation Contract (BCC), service contract... by field of expertise.
Each type of contract has conditions of validity, mandatory content, and specific legal provisions, If you are not well-versed in the matter, it is easy to end up with an invalid contract or be at a disadvantage in the event of a dispute.
See more: Full-Service Investment Certificate Application Service
Common mistakes when drafting contracts and their legal consequences
For individuals and businesses without legal expertise, the following errors occur very frequently:
1. Using a pre-made contract template that is not suitable for the actual situation
Many contract templates on the internet do not reflect current legal regulations or are not suitable for specific transactions, resulting in clauses that are not enforceable.
2. The contract terms are unclear and lack important clauses.
Terms that are not strictly defined will cause serious disadvantages when disputes arise:
- Rights and obligations of the parties
- Contract value, payment method
- Penalties for violations, compensation for damages
- Terminate, cancel the contract
- Dispute resolution
3. Provisions contrary to the law
A contract that violates the prohibitions of the law, is contrary to social morality, or lacks the conditions for validity may be declare invalid, leading to the risk of losing benefits and incurring repayment obligations.
Legal and economic consequences:
- The contract is not protected in the event of a dispute.
- Loss of the right to claim compensation, penalty for violation
- Litigation costs incurred, prolonged processing time
- Impact on reputation and business operations
Important considerations for drafting a legally sound and well-structured contract
To ensure the contract is legally valid and maximally protects your rights, please note:
- Identify the correct signatory, with sufficient legal capacity and behavioral capacity
- The content of the contract does not violate current legal regulations.
- Clearly define the subject matter, value, obligations, and responsibilities of the parties
- Design penalty clauses and compensation for damages in accordance with specialized laws
- Select a clear dispute resolution mechanism (court or commercial arbitration)
- Clear contract language, limiting different interpretations
This is also the reason contract drafting consultation by a specialized lawyer is the safest and most effective solution.
See more: Civil Dispute Resolution Legal Services
Contract drafting services – review of commercial contracts at FundGo Law
FundGo Law provides contract drafting services and review commercial contracts for individuals and businesses with a focus on lawful – easy to understand – protects the actual interests of customers.
Scope of services
- Draft civil contracts and commercial contracts as requested
- Consulting on drafting contracts tailored to specific transactions
- Review commercial contracts, assess legal risks
- Amend and supplement clauses in accordance with current legal regulations
- Clearly explain the rights, obligations, and risks before signing.
Reasons to choose FundGo Law
- Deep understanding Civil Code, Commercial Law, and specialized laws
- Draft contracts that closely reflect the actual transaction, not mechanically following a template
- Minimize the risk of disputes and legal damages
- Accompanying you from the consultation stage to the signing and implementation of the contract
If you are:
- I don't know how to draft a contract.
- Concerns about legal risks when signing
- Review the contract before executing the transaction.
Contact FundGo Law today to be A lawyer provides detailed contract drafting advice that complies with regulations and maximizes your rights and interests..
