A commercial contract is an important legal document in business transactions. According to Vietnamese law, drafting a contract not only requires accuracy in content but also compliance with current legal regulations. Below are contents to note when drafting a commercial contract in Vietnam.

This article was consulted by Lawyer Nguyen Quang Trung

1. Ensuring the legality of the contract

First of all, the contract must comply with the provisions of the Civil Code and the Commercial Law of Vietnam. The contract will not be legally valid if the content violates the law or is contrary to social ethics. Therefore, the parties need to ensure that the terms of the contract are not contrary to the provisions of current law.

2. Clearly identify the parties to the contract

In a commercial contract, clearly identifying the parties is very important. It is necessary to fully state information such as name, address, tax code (for enterprises) and the rights and obligations of each party. This helps avoid unnecessary disputes later.

3. Specific and clear contract content

The content of the contract must be complete, clear and detailed. The terms of the contract, price, implementation time, payment method, responsibilities and rights of the parties must be clearly stated. Using simple language, avoiding ambiguous words will help the parties easily understand and perform the contract.

4. Consider the adjustment and compensation provisions

The contract must have provisions on adjustment if there are changes during the implementation process. The parties also need to clearly agree on the compensation for damages in case one party fails to perform or does not fully perform its obligations. This will help protect the rights of the parties and minimize risks.

5. Compliance with regulations on contract form

According to Vietnamese law, some types of commercial contracts need to be made in writing to have legal value, such as real estate sale and purchase contracts or loan contracts with collateral or mortgage. Therefore, the parties need to pay attention to the form of the contract to ensure its validity.

6. Checking and monitoring contract performance

Finally, after the contract is signed, the parties need to monitor the implementation of the obligations and rights in the contract. This not only helps ensure proper implementation of commitments but also creates favorable conditions for resolving disputes if they arise.

7. Conclusion

Drafting a commercial contract is an important step in the transaction process. Paying attention to the above issues will help the parties protect their legitimate rights and minimize risks in business. A clear, legal and fair contract will contribute to creating a stable and sustainable business environment.