Vietnam: What is the latest form of contract liquidation minutes in 2022? Is it mandatory to record a contract liquidation minute?
What is a contract liquidation minute in Vietnam?
Contract liquidation minutes is a document terminating the performance of the agreement of the two parties as stated in the contract.
According to the provisions of Article 422 of the Civil Code 2015, the specific termination of contracts is as follows:
"Article 422. Termination of contracts
A civil contract shall terminate in any of the following cases:
1. The contract has been completed;
2. The parties so agree;
3. Where a contract is only able to be performed by a particular natural person or juridical person having entered into the contract, and that particular natural person dies or that juridical person ceases to exist.
4. The contract is cancelled or unilaterally terminated;
5. The contract is not able to be performed because the subject matter of the contract no longer exists;
6. The contract terminates as prescribed in Article 420 of this Code;
7. Others circumstances as provided by law."
Vietnam: What is the latest form of contract liquidation minutes in 2022? Is it mandatory to record a contract liquidation minute? (Image from the Internet)
What is the purpose of preparing contract liquidation minutes in Vietnam?
The concept of contract liquidation first appeared and was recognized in the Ordinance on Economic Contracts 1989. Specifically, Article 28 of the Ordinance on Economic Contracts 1989 provides for the liquidation of specific contracts as follows:
"Article 28
The cases of economic contract liquidation:
1- The economic contract has been completed;
2- The effective term of an economic contract has expired and there is no agreement to extend that term;
3. The economic contract is suspended or canceled;
4- When an economic contract is not performed according to the provisions of paragraphs 2 and 3, Article 24 or Article 25 of this Ordinance."
Currently, the Ordinance on Economic Contracts 1989 has expired. In the Civil Code 2015, which is in effect, there are only provisions on contract termination.
Although it is not recorded in civil and commercial legal documents, in reality today, businesses, organizations and individuals often use contract liquidation in civil transactions.
The purpose of the contract liquidation is to limit disputes over the completed obligations.
Is it mandatory to record a contract liquidation minute in Vietnam?
Up to now, there is no regulation that requires the two parties to make a Contract Liquidation Minutes. The content of these minutes is also freely agreed upon by both parties, as long as it is not contrary to law and social ethics.
If the parties do not want to sign the minutes of liquidation, they can insert additional content in the main contract so that the contract can be self-liquidated.
What is the latest form of contract liquidation minutes in 2022?
Download sample contract liquidation minutes in 2022: Click here.
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