Vietnam: Is the contract for donation of property signed by a person with limited legal capacity effective?
What is legal capacity of natural persons in Vietnam?
According to Article 19 of the 2015 Civil Code of Vietnam on the definition of legal capacity as follows:
Legal capacity of natural persons in Vietnam
The legal capacity of a natural person is his/her capability to establish and exercise civil rights and perform civil obligations through his/her acts.
Thus, the legal capacity of a natural person is his/her capability to establish and exercise civil rights and perform civil obligations through his/her acts.
Vietnam: Is the contract for donation of property signed by a person with limited legal capacity effective? (Image from the internet)
Who are persons with limited legal capacity?
According to the provisions of Article 24 of the 2015 Civil Code of Vietnam, persons with limited legal capacity are specified as follows:
- A court shall, at the request of a person with related rights or interests or a relevant agency or organization, issue a decision to declare a person with limited legal capacity after excessive drug consumption or other psychotropic substances, worsening material situation of the family.
The court shall appoint a legal representative of the person with limited legal capacity and the representation scope.
- All civil transactions related to the property of a person with limited legal capacity declared by a court must obtain the consent of his/her legal representative, except for transactions to meet the needs of daily life.
- Where the basis on which a person has been declared limited capacity of exercise no longer exists, the court shall, at the request of such person or any person with related rights or interests, issue a decision to revoke the decision declaring the incapacitated person.
Thus, a court shall, at the request of a person with related rights or interests or a relevant agency or organization, issue a decision to declare a person with limited legal capacity after excessive drug consumption or other psychotropic substances, worsening material situation of the family.
Therefore, a person is considered to have limited legal capacity if and only if there is a decision of the Court.
What are the procedures for requesting to declare a person lacking legal capacity in Vietnam?
According to Article 365 of the 2015 Code of Civil Procedure in Vietnam, Article 377 of the 2015 Code of Civil Procedure in Vietnam and Article 378 of the 2015 Code of Civil Procedure in Vietnam, the procedures for requesting to declare a person lacking legal capacity in Vietnam are as follows:
- Notices on the acceptance of petitions
+ Within 03 working days from the day on which the petition is accepted, the Court shall notify the petitioner, person with interests and duties relevant to the civil matter resolution and the procuracy of the same level in writing of the acceptance of the petition.
+ A notice must contain the following principal details:
++ Date of making of the notice;
++ Name and address of the Court accepting the petition;
++ Name and address of the involved parties;
++ Specific matters that the involved parties request the Court to resolve;
++ List of materials and evidences that are accompanied by the petition;
++ Time limit for person with relevant interests and duties to provide opinions in writing to the Court about the petition and accompanied materials and evidences (if any);
++ Legal consequences of cases where the person with relevant interests and duties fail to submit the Court their opinions in writing for the petition for civil matter resolution.
- Preparation for consideration of petitions
Within the time when the petitions are considered, at the request of petitioners, Courts may request health assessment for the persons requested to be declared having limited legal capacity or forensic psychiatric assessment for the persons requested to be declared lacking legal capacity or having limited cognition or behavior control. In such cases, when the assessment results are received, Courts shall make decisions to open meetings for consideration of petitions.
- Decisions to declare a person lacking legal capacity, having limited legal capacity or having limited cognition or behavior control
If the petitions are accepted, Courts shall issue decisions to declare a person lacking legal capacity, having limited legal capacity or having limited cognition or behavior control.
In the decision to declare a person having limited capacity of exercise, the Court shall determine lawful representative of the person with limited capacity of exercise and scope of representation.
In the decision to declare a person having limited cognition or behavior control, the Court must appoint his/her guardian and determine rights and duties of such guardian.
Is the contract for donation of property signed by a person with limited legal capacity effective?
Pursuant to Clause 1, Article 117 of the 2015 Civil Code of Vietnam stipulating the conditions for effective civil transactions:
- A civil transaction shall be effective when it satisfies all of the following conditions:
+ Participants in the transaction have legal personality and/or legal capacity in conformity with such transaction;
+ Participants in the transaction act entirely voluntarily;
+ The purpose and contents of the transaction are not contrary to the law and/or social ethics.
- The forms of civil transactions shall be the conditions for its effectiveness in cases where it is so provided for by law.
Thus, according to the above provisions, in case the person who is declared by the court to be with limited legal capacity signs a contract for donation of property, this contract will not be effective because it does not meet the conditions on legal capacity of the participant.
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