Vietnam: What is consignment of goods? Sample of consignment contract in 2022 and what to know when consigning a contract for consignment of goods?
What is consignment of goods in Vietnam?
Currently, consignment of goods is a service chosen by many people. Deposit is the transfer of the right to temporarily manage and dispose of its assets to the depositee through a contract.
Therefore, it can also be understood that a consignment contract is a document that records the agreement of the parties on the temporary transfer of the right to manage and dispose of the assets to the consignee.
From a legal perspective, consignment of goods has the nature of a fiduciary activity for the sale and purchase of goods. This is noted in Article 155 of the 2005 Commercial Law, specifically:
Article 155.- Purchase and sale of goods by mandated dealers
Purchase and sale of goods by mandated dealers mean commercial activities whereby the mandatory conducts the purchase and sale of goods in his/her/its own name under terms agreed upon with the mandator and is entitled to receive mandate commission.
Products and goods that are often consigned are clothes, shoes, fashion items ... and absolutely must not be consigned as prohibited goods, dangerous goods,..
Vietnam: What is consignment of goods? Sample of consignment contract in 2022 and what to know when consigning a contract for consignment of goods?
What notes when signing a contract for consignment of goods in Vietnam?
Consignment subjects
A contract for consignment of goods is a service contract, therefore the parties to the contract are the subjects of civil transactions as prescribed in the Civil Code 2015 and satisfy the following conditions:
- Have civil legal capacity and civil act capacity in accordance with established civil transactions;
- Participation in civil transactions is completely voluntary.
In addition, the parties to the consignment contract need to meet the additional conditions specified in Article 156 and Article 157 of the 2005 Commercial Law, specifically as follows:
- A mandatory for purchase and sale of goods is a trader dealing in goods which are consistent with the mandated goods and conducting the purchase and sale of goods under terms agreed upon with the mandator.
- A mandator of purchase and sale of goods may, or may not, be a trader that authorizes a mandatory to conduct the purchase and sale of goods at his/her/its request and pays a commission.
Accordingly, the trustee must be a trader, and the trustee can be a trader or a non-trader.
Subjects of the consignment contract
All goods in legal circulation can be consigned for sale and purchase. In particular, the subjects of ordinary consignment contracts are goods used in daily life and activities. It should be especially noted that consignment goods must not be prohibited goods, weapons, dangerous vehicles ...
Rights and obligations of the parties in the consignment contract
All rights and obligations of the parties will be fulfilled in accordance with the agreed content. Some basic rights and obligations of the parties noted in the consignment contract include (pursuant to Article 162, Article 163, Article 164, Article 165 of the 2005 Commercial Law).
Rights of mandators
- To request mandatories to supply adequate information on the performance of mandate contracts;
- Not to bear responsibility in cases where mandatories commit law violations, except for cases specified in Clause 4, Article 163 of this Law.
Obligations of mandators
- To provide information, documents and means necessary for the performance of mandate contracts;
- To pay mandate commissions and other reasonable expenses to mandatories;
- To hand over money and goods as agreed upon;
- To bear joint responsibility in cases where mandatories commit law violations which are attributable to acts of mandators or intentional law-breaking acts of the parties.
Rights of mandatories
- To request mandators to provide information and documents necessary for the performance of mandate contracts;
- To receive mandate commissions;
- Not to bear responsibility for goods handed over to mandators strictly under agreement.
Obligations of mandatories
- To conduct the purchase and sale of goods as agreed upon;
- To notify mandators of matters related to the performance of mandate contracts;
- To follow instructions of mandators as agreed upon;
- To preserve assets and documents assigned to them for the performance of mandate contracts;
- To keep secret information related to the performance of mandate contracts;
- To hand over money and goods as agreed upon;
- To bear joint responsibility for law violation acts of mandators, in cases where such law violation acts are partially attributable to their own faults
Sample consignment contract for common goods in 2022 in Vietnam?
Download 2022 Common Goods Consignment Contract Form: Here.
Above is some of the information we provide to you. Best regard!
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